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Andrew Crossley, the controversial solicitor who sent thousands of letters to alleged illegal file-sharers, has been suspended from the profession for two years.
At a disciplinary tribunal he was also ordered to pay costs of £76,326.55.
The court heard how Mr Crossley used his law firm ACS: Law to demand money in recompense for alleged copyright infringements. The scheme unravelled when several cases went to court.
The Solicitors' Regulation Authority (SRA), which brought the case against Mr Crossley, welcomed the decision to uphold the allegations against Mr Crossley.
"Some of those affected were vulnerable members of the public and this matter has caused them significant distress," said an SRA spokesman.