Two Bradford solicitors feathered their own nests by failing to pay clients interest on millions of pounds the pair held for them, a professional hearing was told.

Matthew Craig Lamb, 38, and Steven Stead Wells, 49, are accused of not complying with professional conduct rules to pay interest on clients' money.

The allegations arose from the operation of 'an accelerator mortgage plan' sold by a company for which they were both directors, the Solicitors Disciplinary Tribunal heard.

Both men were also directors of a solicitors' practice called Listers Solicitors Limited, of Manor Row and Westgate, Bradford, which has now gone into liquidation, said George Marriott, for the Law Society.

The accelerator plan was sold by Mortgage Management Limited. The aim of the plan was to help home owners reduce the capital they owed with their mortgage.

Mr Marriott told the tribunal that homeowners agreed to pay a sum greater than the monthly mortgage repayment into the client account of Listers Solicitors. The practice in turn agreed it would pay what was due under the mortgage and retain the balance in client accounts. The system was operated by Mortgage Management over four years.

Mr Marriott said at one point more than 5,500 borrowers or homeowners with mortgages had money held in Listers' client account - amounting to £3m.

The tribunal heard that an investigating accountant discovered that of 66 client accounts, 43 which were eligible for interest had had none credited to them. Mr Marriott said there was an obligation on solicitors to pay interest on clients' account money. Mr Marriott alleged this was deliberate.

For the period ending September 30 last year, £130,000 interest was earned on that money in clients' accounts but only £1,500 was paid out to clients.

"They knew the rules and they did not apply those rules and they did not apply those rules for their own benefit," said Mr Marriott.

Mr Lamb, of Pecket Well, Hebden Bridge, and Mr Wells, of Ash Croft, Wibsey, deny acting dishonestly.

They also face allegations of conduct unbefitting a solicitor, including breaches of accounts rules. The hearing continues.