Judge shames finance firm after elderly ‘lose thousands’

A fIrM charged with looking after the financial affairs of the vulnerable has been shamed by a judge amid claims that dozens of clients lost thousands of pounds.

Matrix Deputies is at the centre of allegations that more than 50 people may have lost their savings, as well as claims the firm took a fee when selling clients’ homes.

The company handled bank accounts, savings and property of those too ill to run their own affairs after being recommended by a council.

But a judge has now ordered an inquiry into amounts that may have disappeared.

She stripped Matrix of its powers to act for clients and ordered the firm to pay over £250,000 to Enfield Council in north London to cover the cost of an investigation.

Documents made public by the Court of Protection show Matrix was invited to take over the affairs of vulnerable people living in Enfield. Although the council’s reasons for using the firm are unknown, staff may have been anxious to see care home bills paid.

One of the services Matrix offers is ‘supporting our clients to meet their financial obligations, for example, payment of social care charges’.

Under the Mental Health Capacity Act, it was able to act as a ‘deputy’ managing the financial affairs of its clients.

A deputy must be approved by the Court of Protection – a branch of the High Court – and will take decisions for someone who may be ill, suffering from dementia, or with learning difficulties, typically in cases where the person at risk does not have close family to help.

Deputies must act in the interests of clients and may charge reasonable fees. Until the Matrix case, nobody expected companies to be formed to act on behalf of large numbers of people.

The firm was legally responsible to the Office of the Public Guardian, which brought complaints against it to the Court of Protection. The 52 people said in court to have been at risk of financial abuse were vulnerable individuals living in Enfield.

Among the allegations levied against the firm is that it held all its client’s funds in one account that was marred by ‘unexplained discrepancies’.

It is said to have charged excessive fees, to have displayed ‘conflicts of interest’ and to have failed to comply with court orders demanding information.

The allegations have been detailed in a Court of Protection ruling made public by Judge Carolyn Hilder. She said the firm had claimed there was ‘ a distinction between financial abuse and fraud’ and that it had been responsible only for ‘failures of administration’.

But she said ‘ the admitted breach of duty is a very serious matter.’ Among the allegations accepted by Matrix is that it sold three homes belonging to clients and the firm then received 0.5 per cent of the value back from estate agents.

Judge Hilder said this was ‘a clear system of financial benefit ... at the expense of persons to whom they owed fiduciary duties’. The firm also accepted there were ‘errors’ in spending on behalf of clients that amounted to more than £30,000.

Despite the questions over what happened to large sums of money for which Matrix was responsible, no police probe has been launched.

Enfield council said it would ensure anyone who lost money would get back ‘every penny’, and that it ‘has already recouped the vast majority’. A spokesman said: ‘Matrix Deputies Ltd were identified by Enfield council, following a procurement exercise, as a company that could provide deputyship to vulnerable adults.

‘If we find out a resident has been left out of pocket as a result of the actions of Matrix...we have court approved arrangements in place to recoup that money.’

Matrix’s company director Maku Pankhania said: ‘I have got nothing to add.’

‘Breach of duty is serious matter’