England’s Solicitors Regulation Authority (SRA) has launched an investigation into law firm Gunnercooke over its involvement with companies linked to the collapsed mortgage provider Market Financial Solutions (MFS). The probe centers on the firm’s work for Twinwin, a lender entangled in MFS’s financial downfall and now insolvent amid allegations of fraudulent activity.
The SRA initiated the investigation in June after reviewing Gunnercooke’s connections to Twinwin, which creditors claim was used to facilitate improper transactions. Administrators told a court in March that Gunnercooke had verified debt documents for Twinwin, a company allegedly employed by MFS founder Paresh Raja to redirect funds away from creditors, including Barclays. Raja faces accusations of misappropriating at least £1.3 billion from MFS but denies any wrongdoing or fraud.
Sources familiar with the matter say the SRA’s scrutiny is focused on whether Gunnercooke ignored warning signs of potential fraud during its advisory and documentation role. The regulator is also examining if the firm relied on forged evidence in its dealings with entities connected to Twinwin.
Gunnercooke operates from 16 offices across the United Kingdom, the United States, Germany, and Austria, employing over 600 staff. The firm has stated that it is cooperating fully with the SRA and categorically denies any allegations of misconduct. According to Gunnercooke, the investigation originated from evidence submitted by an individual who entered into loan agreements with one of its clients under professional legal advice; this person reportedly defaulted repeatedly on payments.
MFS collapsed in February, triggering widespread concern over underwriting standards within large financial institutions. The company had attracted over £2 billion in loans from creditors such as Barclays, Jefferies, and Apollo’s credit arm Atlas SP Partners. These loans were reportedly secured against mortgages provided by MFS, although the group faced allegations of double-pledging collateral—offering the same assets as security to multiple lenders—complicating creditors’ efforts to assess the value of their claims.
Legal filings reveal that while official documents named Khemanand Hurhangee as the owner of Twinwin, the firm appeared to be controlled by Raja. Twinwin was declared insolvent in March following actions by Barclays and private credit firm Castlelake. Requests for comment from Hurhangee were not answered.
The investigation into Gunnercooke adds to a series of ongoing inquiries related to MFS’s collapse. The Financial Conduct Authority is conducting a broader investigation into the mortgage provider, while the Bank of England is reviewing lenders’ exposure to similar risks. Additionally, the UK’s accounting watchdog is examining several smaller audit firms responsible for reviewing financial statements of entities within Raja’s business network.
The SRA declined to comment further on the investigation.