A crooked solicitor who along with his estate agent wife defrauded clients for their own financial gain has been jailed for two-and-a-half years.

Michael Lyons' wife Kelly was spared prison because they have two young sons.

She was sentenced to two years imprisonment suspended for two years with 200 hours unpaid work.

Judge Adele Williams told the 48-year-old Herne Bay solicitor: “You are a very manipulative, deceitful and arrogant man.

"It was a serious breach of trust in you as a solicitor.”

Maidstone Crown Court heard in one fraud, the couple falsely represented that a house in Whitstable sold for £115,000, when the amount was £125,000 – and pocketed the £10,000 difference.

The couple also carried out a deception involving a property in Sturry, Canterbury, to gain £4,000 for themselves.

Michael Lyons, who was struck off in September 2016, and his wife, who ran Orchards Property Services, despite not being a qualified estate agent, operated from the same building in William Street, Herne Bay.

Prosecutor Don Ramble said Lyons acted as the conveyancing solicitor for the vendor, the buyer or both, while his 45-year-old wife valued and purported to market the properties.

Kelly Lyons was also employed as a conveyancing executive and completions clerk by her husband, despite not being a licensed conveyance.

In March 2012, Dr David Farrall contacted Lyons Solicitors about selling a house in Maugham Court in Whitstable. Lyons suggested his wife should market the property.

Kelly Lyons valued it at £115,000 but recommended putting it up for £125,000 to test the market.

In May, she told Dr Farrell an offer of £110,000 had been made, but it was a lie as the figure was £125,000. She later told him the offer had been increased to £115,000.

“As a result of this information, David Farrell formally accepted this purported offer of £115,000, not knowing the true offer was, in fact, £125,000,” said Mr Ramble.

“At no time was the vendor or the purchaser informed that Michael Lyons was acting for both parties, which was a clear conflict of interest.”

In October, the buyer received a letter from Lyons enclosing a forged “land registry official copy of register of title”, confirming he had paid £125,000 for the leasehold.

An uncle of the buyer in June 2013 looked at website called nethouseprices and discovered the purchase price was £115,000.

He then contacted Dr Farrell, who asked Lyons for an explanation.

Lyons claimed there had been a “sub-sale” of the property to Robert Saunders for £115,000 and he had then sold it to the buyer for £125,000. Mr Saunders is Kelly Lyons’ father.

Mr Ramble said the £10,000 difference had remained in the Orchards account.

Dr Farrell and the buyer have since been compensated by the Solicitors Regulatory Authority.

Lyons also committed a fraud and his wife committed forgery involving a house in Sunnyhill Road, Herne Bay.

The property was marketed in June 2012 at £145,000 but was eventually sold in November to Robert and Judy Saunders – Kelly Lyons’ parents - for £95,000.

It was put back on the market in January 2013 for £175,000, marketed by Orchards Property Services.

It did not sale and was withdrawn from the market. In February 2014, it was transferred to Michael and Kelly Lyons for “no monetary value”.

In the summer of 2015, the house was sold for £230,000.

The final fraud involved a house in Deansway Avenue in Sturry, which was valued at £130,000 to £135,000, and to be sold to pay for the owner’s care home fees.

"This fraudulent conduct took place while each of you were purporting to act as professionals" - Judge Adele Williams

Her nephew and niece were granted power of attorney and dealt with the sale. They were informed it was sold for £132,000.

But they discovered the person they were told had bought it was not the owner.

She said she had been told that the original owner had died, matters were going to probate and the property had been taken off the market.

“These were lies as she had not died at all,” said Mr Ramble.

It was then discovered that another buyer had paid £136,000 for the house. The niece and nephew confronted the Lyons’ about the discrepancy in sale prices.

Kelly Lyons explained away the £4,000 discrepancy as an “administration mistake”.

Mr Ramble said she also charged £6,000 VAT in respect of 30 properties when she was not registered with HMRC.

Lyons, who kept the amount, used the VAT number for her husband’s practice.

Michael Lyons admitted three offences of fraud and his wife admitted two offences of fraud, five of forgery and one of evading VAT.

A proceeds of crime hearing for the couple, who moved to Highbury Close in New Milton, Hampshire, with their children, aged 10 and nine, will be held on June 15.

Georgina Gibbs, defending Michael Lyons, said it was a “spectacular fall from grace”, as he had been struck off. Until then, he had been “entirely law-abiding”.

“He has nobody but himself to blame, of course,” said Miss Gibbs.

Asked by Judge Adele Williams where the defrauded money had gone, Miss Gibbs said it was used for the family “to live”.

“The family was under severe financial difficulties,” she said.

“That is what led him to make these terrible decisions to conduct himself in the way he did.”

Miss Gibbs said the impact on the couple’s children would be severe if he was sent to prison. He was also a primary carer for his elderly father.

She submitted that a suspended sentence would not be a soft option.

Lesley Manley, defending Kelly Lyons, said the mother wanted to apologise for the upset and distress she had caused.

“She takes full responsibility for her actions,” said Miss Manley.

“Were it not for her marital situation it is very unlikely she would have acted in this way.

“They have had to uproot their children to Hampshire. She wants stability for them.

"If she went into custody it would deprive them of parental care. It would be extremely damaging for them.”

Describing the offences as “spectacular”, Judge Williams added: “It is the whole dishonesty and fraudulent nature of the transaction.

"The monetary value is of lesser significance.”

A statement from one victim, she said, made powerfully clear “the absolute loss of trust” and the effect on him.

“It is the wider effect on the legal profession as a whole,” said the judge.

Passing sentence, Judge Williams said: “This fraudulent conduct took place while each of you were purporting to act as professionals.”

The victim statement made clear “the real mischief of the criminality, the serious breach of trust and the loss of trust in the legal system”.

“It was not the monetary value which was of significance, but the breach of trust.”

The judge said Kelly Lyons, who has separated from her husband, accepted full responsibility for her wrongdoing, but added: “You are an intelligent woman and knew exactly what you were doing.

“You could have no complaint if I sent you to prison but in mercy I have decided I can suspend the inevitable sentence of imprisonment.

“I accept the impact on your children would be great indeed if you went to prison.

"There are no other relatives to take on their care. You recognise the disgrace and shame you have brought upon yourself.”

The judge told Michael Lyons: “You have shown no remorse for your crimes. You employed your wife. Your culpability is, therefore, greater than hers.”