This shocking case underlines a painful truth: internal fraud can happen to any agency, even when the perpetrator is someone you trust implicitly. It also highlights why property professionals—particularly company directors—must be proactive in protecting their business and clients from the unexpected.
The risks are real - and personal
While cyber threats and scams are often top of mind, internal fraud is a hidden danger that can go undetected for months or even years. In this case, it took an internal audit to uncover the theft. Meanwhile, the directors bore the emotional burden, reputational fallout, and financial risk, despite having spent decades building a trusted local business.
If it’s found that the Principal, Partner, or Director (PPD) has failed to put reasonable safeguards in place, they may be held personally liable to repay any Client Money Protection (CMP) claim paid out. For some, that could mean facing personal debt or even the closure of their agency.
Fidelity insurance: a safety net worth having
Nikki Tucker from our Compliance Administration Team is urging more directors to think seriously about their exposure: “Any business with staff is at risk—especially smaller agencies where one person may handle multiple parts of the client money process. Insurance is vital, and prevention is even better.”
In a move driven by our members, Propertymark launched Company Advantage, which includes Professional Indemnity Insurance with fidelity cover — insurance that protects against employee theft or dishonesty. It's included as standard across all subscription tiers and is backed by our trusted partner, Gallagher.
Company Advantage
Company Advantage leverages the buying power of Propertymark's member network to procure services at a fraction of their commercial rate—and pass the high-quality savings onto you. Benefits will vastly outweigh the cost, delivering a far higher return for every Company Advantage subscriber.
Prevention is better than cure
Strong internal systems are your first line of defence. Simple but effective steps include:
- Dividing responsibilities so no single person controls client money from start to finish
- Regular reconciliations and independent audits
- Vetting staff and suppliers rigorously
- Keeping an eye on personal changes that may affect staff behaviour (e.g. financial hardship, addiction, family issues)
- Implementing clear ethical standards and whistleblowing policies
For directors who feel unsure about financial processes, Propertymark’s training course, "Essential finance skills for non-finance managers", led by Chartered Management Accountant Martin Mellor, is a practical way to strengthen oversight and confidence.
Don’t wait until it’s too late
Fraud cases like that at Sansome & George are rare, but they do happen. And the impact can be devastating. Rebuilding client trust and recovering financially takes time and resilience. That’s why we urge every Propertymark member to review their risk exposure and take advantage of the support and protection we provide.
