Law firm face £28m legal battle over collapse of Scottish tycoon Greg King’s hedge fund
LAWYERS Levy & McRae are battling attempts to sue them over the demise of the controversial Glasgow financier’s firm Heather Capital.
Get Daily updates directly to your inbox
A LEADING law firm are to learn within months if a bid to sue them for £28million can continue.
Glasgow-based Levy & McRae are battling attempts to sue them over the collapse of hedge fund Heather Capital.
Heather, run by controversial Glasgow -born financier Greg King, raised £280million from investors but collapsed in 2010.
Current and ex Levy & McRae partners – including suspended sheriff Peter Watson – face a claim of up to £28million from Heather’s liquidator Paul Duffy.
Lord Doherty ruled evidence should be heard to decide the case but the firm are appealing.
Following a Court of Session hearing last week, a decision is expected in the New Year.
Watson is listed in court papers as the “eighth defender”.
In his ruling on July 22, Lord Doherty stated the allegations related to claims of “links between the eighth defender and companies controlled by Mr King”.
It said the allegations were “that in December 2008 an unexplained payment of £200,000 was made to the eighth defender from the same client account into which £9.412million had been paid by” the Levy & McRae partners.
We told in July how James Matthews, Pippa Middleton’s fiance, invested £38million in Heather Capital. His cash was returned before the collapse.
King, 48, is one of four men charged by police after the demise of Heather Capital’s lending arm Mathon Finance.
It’s alleged £90million was stolen when Heather went bust.
King, Andrew Sobolewski, 57, of Bridge of Weir, Renfrewshire, Andrew Millar, 63, of Cambuslang, near Glasgow, and Scott Carmichael, 44, of Thorntonhall, near Glasgow, were named in the report on Mathon sent to the Crown Office. The Crown Office said the report is still “under consideration”.