Allegations of dishonesty, missing files & funds - Investigations by SLCC & Law Society into Borders solicitor Andrew Penman stall after rogue lawyer is ‘signed off sick’ to protect from court & complaints

Andrew Penman – ‘signed off sick as protection from litigation - Law Society. A SOLICITOR from a now defunct law firm in the Scottish Borders - who was accused by Law Society of faking up evidence, deceiving banks and the Inland Revenue is now ‘signed off sick’ to protect him from ongoing investigations and court litigation – claim legal sources.

Andrew Paterson Penman, solicitor from the now closed down law firm of Stormonth Darling Solicitors  - based in Kelso, Scottish Borders - was suspended in October 2014 without any action before the Scottish Solicitors Discipline Tribunal.

After a period of weeks were clients were unable to contact Mr Penman or gain control of their legal affairs, the Law Society of Scotland closed down Stormonth Darling. The law firm’s business was then taken over by another Kelso based law firm – Cullen Kilshaw.

It has now transpired both the Law Society of Scotland and the Scottish Legal Complaints Commission are investigating serious complaints made by clients against Mr Penman and his former law firm.

Legal insiders claim there are allegations of significant amounts of money “gone missing”, allegations relating to fraud and the collection or payments of rents, and allegations relating to the misuse of trusts, wills and executries – with significant sums involved.

It has also been claimed the names of a number of other firms located in the Scottish Borders have cropped up during investigations into Penman’s conduct.

These include one firm of Borders accountants who appear to have been used to conceal client’s affairs, and two other law firms, one also based in Kelso – who both appear to have facilitated “transactions unauthorised by clients”.

One former client of Stormonth Darling described how in a previous case, Mr Penman had falsified documents in a bid to thwart an earlier investigation into allegations of fraud and missing funds.

Of the current situation, the former branded the Law Society & SLCC as protective of solicitors, telling SLR: “The Police should be brought in to investigate Penman and his activities.”

Another former client told how the wording of wills had been suspiciously altered, and how property titles “had disappeared without trace”.

Penman’s suspension was published in the Gazette: Notice is hereby given that the practising certificate of ANDREW PATERSON PENMAN, solicitor, Stormonth Darling, Bank of Scotland Buildings, 8/9 The Square, Kelso, TD5 7HQ was suspended under Sections 39a and 40 of the Solicitors’ (Scotland) Act 1980 with effect from 2 October 2014.

The order publishing Penman’s suspension was signed by James Ness, Deputy Registrar – the same solicitor who once defended Penman at Law Society Complaints Committees.

Ness - a partner at Austins Solicitors, Dalbeattie, Dumfries & Galloway - represented Penman at Law Society complaints hearings.

In one case, James Ness gave a submission on behalf of the suspended solicitor - demanding the Complaints Committee alter its decision to prosecute Penman before the Scottish Solicitors Disciplinary Tribunal.

The move was controversial and heavily reported in the national and local press at the time.

Earlier this year, Penman was linked to a case in the Court of Session - A398/14 Ladykirk Estates Ltd v Stormonth Darling WS :

Ladykirk Estates Limited, Academy House, Shedden Park Road, Kelso, (Ledingham Chalmers Llp) Roxburghshire AG V Stormonth Darling W.S. Solicitors, Drew Penman, Terry Mcnally and Craig Wood, Bank Of Scotland Buildings, The Square, Kelso, Roxburghshire

Court staff indicated the case was one of a significant financial claim against Penman and other solicitors based at Stormonth Darling in Kelso.

Andrew Paterson Penman was employed as a Director (SOLICITOR) at LADYKIRK ESTATES LIMITED from 01 June 2007 to 17 September 2012 , Company address: LADYKIRK ESTATES LIMITED ACADEMY HOUSE, SHEDDEN PARK ROAD, KELSO, ROXBURGHSHIRE, TD5 7AL

Andrew Paterson Penman was also employed as a Director (SOLICITOR) at S.P.C. BORDERS from 31 January 2006 to 30 November 2014 Company address: S.P.C. BORDERS 27 MARKET STREET, GALASHIELS, TD1 3AF

It has also been revealed Penman and his law firm are being investigated by the Scottish Legal Complaints Commission & Law Society of Scotland in connection with a number of complaints made by clients where substantial sums of money into hundreds of thousands of pounds along with queries regarding unpaid rent and disappeared funds are alleged.

Late last year, Solicitor Craig Wood - the only remaining solicitor at Stormonth Darling ‘took ill’ leading to the Law Society closing the firm down.

Wood – who was named in a writ against the law firm at the Court of Session - has since died from his illness.

It is not known whether Mr Wood gave any statements to clients or the Law Society regarding the problems at Stormonth Darling.

In an update to the report, as of 23 October 2015, SLR has been approached by several individuals from Kelso and around the Scottish Borders who have provided documentation on their dealings with Penman and Stormonth Darling.

In one case, a client alleges he received visits from officers from the former force of Lothian & Borders Police after he raised questions with the Law Society over significant sums of missing funds & assets under the control of Stormonth Darling.

Solicitors based at Stormonth Darling and an accountant caught up in accusations of hundreds of thousands of pounds gone missing from a will – appear to have used their influence with public services based in the rural Borders backwater to cause difficulties in the lives of clients whose funds and assets were being systematically stripped by the now defunct law firm.

The names of two former LibDem politicians, one from Holyrood, another from Westminster - have also been connected to the difficulties at Stormonth Darling.

In 2009, Scottish Law Reporter covered a story relating to Ladykirk Estates & Andrew ‘Drew’ Penman – after both lost a legal challenge in Scotland’s Land Court. LadyKirk Estates objected to the transfer of a farm tenancy from an elderly tenant to his younger nephew. Ladykirk had also claimed their ECHR rights had been in breach. Full report HERE

CHEQUERED HISTORY OF BORDERS LAWYER WHO RUINED CLIENTS:

Penman – Originally from Hawick then moved to Kelso to work at Stormonth Darling Solicitors, has been subject to numerous complaints from local clients in the Scottish Borders over the years, One investigation carried out by the Law Society of Scotland issued reports finding Penman had deliberately rearranged evidence before investigating officers took possession of the files in an attempt to prevent the Law Society’s own reporter from investigating the circumstances of the losses. The Law Society investigating reporter found “there was also evidence of what appeared to be a bungled and unsuccessful attempt to put the file into order”

The Law Society investigator recommended a prosecution of Andrew Penman, saying : “In respect of the extraordinary delays and the repeated failures to respond to correspondence and the apparent, deliberate attempt to mislead the Royal Bank the reporter was of the view that the professional misconduct was such that it would warrant prosecution before the Scottish Solicitors Discipline Tribunal The reporter was or the view that there had clearly been an inadequate professional service but in the, event of a referral to the Scottish Solicitors Discipline Tribunal this would be incorporated into the complaint.”

Neither the Law Society of Scotland or Scottish Legal Complaints Commission could not be reached for comment.

Lord Advocate & Crown Office identify two ‘new’ Libyan suspects sought for questioning over 1998 terrorist bombing of flight Pam Am 103 over Lockerbie

Old Lockerbie suspects sought anew by Lord Advocate. SCOTLAND’S Lord Advocate Frank Mulholland has requested the help of Libyan judicial authorities for Scottish police officers and the FBI to interview two Libyan suspects in the bombing of flight Pan Am 103 over Lockerbie in 1988.

The request – 27 years after the destruction of Pan Am Flight 103 over Lockerbie, Scotland in December 1988, comes after the Crown Office said earlier today that the two men are believed to have acted with Abdelbaset Ali Mohmed al-Megrahi, the only person ever convicted of the bombing, which caused the deaths of 270 people.

Neither suspect was named by the Crown Office although it is thought the identities of both have appeared in claims by prosecutors at previous stages of the case.

A Crown Office spokesman said today: "The Lord Advocate and the US Attorney General have recently agreed that there is a proper basis in law in Scotland and the United States to entitle Scottish and US investigators to treat two Libyans as suspects in the continuing investigation into the bombing of flight Pan Am 103 over Lockerbie.

"The Lord Advocate has today, therefore, issued an International Letter of Request to the Libyan Attorney General in Tripoli which identifies the two Libyans as suspects in the bombing of flight Pan Am 103. The Lord Advocate and the US Attorney General are seeking the assistance of the Libyan judicial authorities for Scottish police officers and the FBI to interview the two named suspects in Tripoli. The two individuals are suspected of involvement, along with Abdelbaset Ali Mohmed Al Megrahi, in the bombing of flight Pan Am 103 in December 1988 and the murder of 270 people."

BBC News reported:

Two new Lockerbie bombing suspects identified

Scottish prosecutors want to interview two Libyans they have identified as new suspects over the Lockerbie bombing.

They believe the two suspects acted along with Abdelbaset al-Megrahi - the only person to have been convicted of the atrocity.

The BBC understands the pair are Mohammed Abouajela Masud and Abdullah al-Senussi.

A total of 270 people died when the Pan Am 103 flight was blown up on the evening of 21 December 1988.

The flight was on its way from London to New York when it exploded above Lockerbie, in southern Scotland, killing everyone on board and 11 people on the ground.

Senussi was the brother-in-law and intelligence chief of former Libyan dictator Colonel Gaddafi. He is currently awaiting execution in a Libyan jail.

Masud is reported to be serving a prison sentence in Libya for bomb making.

Scotland's Lord Advocate Frank Mulholland QC recently met the US Attorney General, Loretta Lynch, in Washington to review progress made in the ongoing investigation.

They have now requested permission from the Libyan authorities for Scottish police and the FBI to interview the two new suspects in Tripoli.

A Crown Office spokesman said: "The Lord Advocate and the US Attorney General have recently agreed that there is a proper basis in law in Scotland and the United States to entitle Scottish and US investigators to treat two Libyans as suspects in the continuing investigation into the bombing of flight Pan Am 103 over Lockerbie.

"The Lord Advocate has today, therefore, issued an International Letter of Request to the Libyan attorney general in Tripoli which identifies the two Libyans as suspects in the bombing of flight Pan Am 103.

"The Lord Advocate and the US Attorney General are seeking the assistance of the Libyan judicial authorities for Scottish police officers and the FBI to interview the two named suspects in Tripoli.

"The two individuals are suspected of involvement, along with Abdelbaset Ali Mohmed al-Megrahi, in the bombing of flight Pan Am 103 in December 1988 and the murder of 270 people."

The Libyan attorney general declined to comment to the BBC on whether a letter had been received from the Crown Office and whether the Libyan government would be assisting in the investigation.

Rival governments

Libya has struggled to stabilise since ousting long-term leader Colonel Muammar Gaddafi in 2011. Elections in 2014 produced two rival governments as Islamist and secular militias fight for control of the country.

The Crown Office said it would be inappropriate to confirm any identities to preserve the integrity of the investigation.

Megrahi's part in the bombing has been called into question in a series of books and documentaries.

And a petition seeking "Justice For Megrahi", backed by politicians and family members of some victims, was raised at the Scottish Parliament in 2012.

Jim Swire, whose daughter died in the bombing, told the BBC: "I think there is a need for evidence to be made available as to why these two are suspects.

"We have recently been refused permission in Scotland to have to have a further appeal held into Megrahi's conviction, and many in this country simply don't believe Megrahi was involved and that this was a miscarriage of justice.

"To try and bolt two more names on top of that is a very difficult situation. It will need to be supported by better evidence than was produced to achieve the conviction of Megrahi."

But Frank Duggan, president of Pan Am 103 Relatives, told BBC Radio Scotland's Newsdrive programme he was not confident there would be further prosecutions.

'Really gratified'

He said: "I would like to think there would be, but they would have to be indicted by the US government or by the Scottish government and the Libyan government would have to turn them over - the Libyans have always said they are not going to turn over anyone to a foreign government.

"And it's been 26 years. It's too long, people are dead, stories have been forgotten.

"I'd like to think that it will be one small measure of closure but I don't expect the kind of justice that we all hope for."

Stephanie Bernstein, who lost her husband in the bombing, told the BBC that she was "surprised, delighted and really gratified" by the announcement.

She added: "There are many, many people who I hope are not sleeping so well tonight knowing that the Scottish government and the US government are committed to pursuing this case."

TRIAL BALLOON: Lord Advocate deflects calls for inquiry on Crown Office handling of mortgage fraud allegations against solicitor who represented MP Michelle Thomson

‘Unconvincing’ Lord Advocate raises fears of cover up. DURING one of the worst performances ever by a Lord Advocate before the Scottish Parliament – top prosecutor Frank Mulholland said he did not think there should be an inquiry into the handling of an investigation of a lawyer who was struck off over property deals involving SNP MP Michelle Thomson.

Responding to questions on when the Crown Office & Procurator Fiscal Service (COPFS) was informed of allegations of mortgage fraud involving solicitor Christopher Hales – Frank Mulholland told MSPs that he does not believe there should be an inquiry into when prosecutors knew and how the case has since been handled - after it emerged the Law Society briefly informed the Crown Office of the ‘issue’ in December 2014.

Hales, who once listed his occupation as “Police Constable” – and is now struck off by the Scottish Solicitors Discipline Tribunal from working as a solicitor - handled numerous property deals for his client – SNP MP Michelle Thomson. Mr Hales acted for Ms Thomson before she was elected as an SNP MP.

According to a ruling by the Scottish Solicitors’ Discipline Tribunal, a full version of which has been published by the Sunday Times, Mr Hales failed to provide key information to mortgage lenders in breach of guidelines designed to prevent fraud in numerous cases.

In the Scottish Parliament on Thursday, Labour MSP Jackie Baillie asked Mr Mulholland about the timeline in the case.

During the 10 minute session, Lord Advocate Frank Mulholland presented a timeline of events as the Crown Office saw it:

18 December, 2014 - The issue of solicitor Christopher Hales was raised "informally" by the Law Society of Scotland with the Crown Office. Neither the clients nor properties were named.

28 April, 2015 - The issue was raised again and it was noted that the matter of referral to the Crown Office was still under consideration by the Law Society. Neither the clients nor properties were named.

1 July, 2015 - The Crown was advised by the Law Society that it was required to obtain authorisation from its Guarantee Fund Sub Committee to formally refer the case.

3 July, 2015 - Referral was received by the Crown following the required authorisation. Documents were handed over to the Crown Office and in those documents the names of clients and properties were disclosed.

9 July, 2015 - A formal referral was made to the Crown Office and instructions were issued to Police Scotland.

Frank Mulholland  questioned by MSPs about when the Crown Office was first notified of allegations of mortgage fraud against Christopher Hales.

Mr Mulholland said: "As the Crown has made clear on a number of occasions, the case of Christopher Hales was first brought to its attention by the Law Society of Scotland at a meeting on 18 December, 2014."

Ms Baillie asked if Mr Mulholland believed there should be an investigation into the processing of information between the Law Society and the Crown Office.

She asked if he would order such an inquiry, given that there may have been "additional opportunities for alleged mortgage fraud" due to the delay.

Mr Mulholland responded: "I don't have the power to order an inquiry, and I don't think there should be an inquiry."

He said Police Scotland were instructed to investigate the allegations on 3 July 2015 and formally issued officers to do so on 9 July.

He said the issue was raised at routine quarterly meetings between the Law Society and the Crown Office.

Mr Mullholland said the Crown Office was first made aware on 18 December 2014 that the case was under consideration for referral. The issue was raised again on 28 April.
Image copyright PA Image caption Ms Thomson denies acting illegally

Mr Mulholland added: "The first time the Crown was made aware of the identity of the clients and the properties, was the 3rd of July."

Mulholland was also asked by Jackie Baillie if the Crown Office had begun any Proceeds of Crime actions against those involved.

Embarrassingly for the Lord Advocate, and appearing to have little clue as to the sequence of events, he responded “not yet”.

Police Scotland launched an inquiry only after the Crown Office was finally handed the detailed case files in the Hales case by the Law Society, some seven months from the day it first alerted prosecutors to the case.

Hales was banned from the legal profession in May 2014 over 13 property deals linked to Thomson and her business partners. The transactions involved “back to back” sales, where homes – often owned by vulnerable people – were bought at below full market value and then resold at far higher prices, in some cases on the same day; where large cash sums were transferred between the parties involved; where mortgage loans were sought that were higher than the price paid for the home, and where higher prices than those actually paid were recorded in the Scottish land registry.

Mortgage companies involved in those transactions, including Lloyds, which gave loans through its subsidiary Birmingham Midshires, and Virgin Money, which now owns the mortgage book for Northern Rock, which lent money for one sale, have confirmed they are now in contact with the police.

The Sunday Times disclosed it had submitted new evidence of an unusual property transaction to Police Scotland detectives after a couple who sold a home to Thomson alleged they had £32,000 deducted from the sale proceeds to pay off a loan they had no knowledge of.

The solicitor involved in that transaction, James Craig, had been found guilty of professional misconduct in February 2014 by the Scottish Solicitors Disciplinary Tribunal (SSDT), the body that struck off Hales three months later, and fined £2,500 for breaching money laundering regulations. There was no evidence that Craig acted improperly in the case reported by the Sunday Times.

The Sunday Mail reported that a second lawyer named in the SSDT judgment on Hales called Christopher Tulips, whose firms Strefford Tulips was involved in several deals for Thomson’s firm M&F Property Solutions, had also been censured and fined £2,500 for his role in back-to-back property deals. The published ruling by the SSDT on Tulips is anonymised, so it remains unclear whether his case involved transactions linked to Thomson.

Last week, the Law Society said its director of financial compliance Ian Messer "informally" raised concerns about the case of Mr Hales during two separate meetings with prosecutors in December 2014 and April 2015.

However, the Law Society did not "formally" submit its evidence to the Crown until July 2015, two months after Ms Thomson was elected SNP MP for Edinburgh West.

Law Society chief executive Lorna Jack gave an "absolute and categorical assurance" last week that the election played no part in the timings of the case.

She said Mr Messer would have seen Ms Thomson's name in the unredacted report into Mr Hales but may not have been aware she was a Westminster candidate.

The secretary to the Law Society committee that struck Mr Hales off, Sheila Kirkwood, is said to be a personal acquaintance of Ms Thomson with close links to the SNP.

Lorna Jack has pledged to look more deeply into Ms Kirkwood's links with Ms Thomson, but said she has received an assurance the secretary was unaware of the MP's links to Mr Hales until she read about it in media reports.

Ms Thomson is linked to 13 transactions Mr Hales conducted in 2010-11 where properties were said to have been bought cheaply from clients looking for a quick sale and then sold at a huge mark-up on the same day.

Complicated "cashback" deals were said to have been used to artificially inflate property prices in order to secure bigger loans from lenders.

Ms Thomson has denied acting illegally.Ms Thomson has surrendered the SNP party whip and has also stood down as the party's business spokeswoman at Westminster until the investigation into Mr Hales has concluded.

Previously, First Minister Nicola Sturgeon denied having any prior knowledge of a scandal which led to one of her most prominent MPs stepping down from the party.

During First Minister’s Questions last Thursday, 1 October,  Nicola Sturgeon said in response to questions that "serious issues" had been raised around the conduct of Michelle Thomson. The First Minister said that a police investigation should be allowed to take its course.

NO HOMELESSNESS FOR POLITICIANS:

The House of Commons Register of Members’ Interests lists 16 SNP MPs as holding property interests from which most receive rental income.

Under the rules, Members of Parliament are required to list a property if (i) its value is over £100,000 and (ii) if they receive rental income of at least £10,000 a year.

Tasmina Ahmed-Sheikh(Ochil and South Perthshire): Three flats in Glasgow and a house in Kingussie, Highlands and Islands (i/ii).

Richard Arkless(Dumfries and Galloway): A house in Broxburn, West Lothian, and a flat in Glasgow (i/ii).

Ian Blackford(Ross, Skye and Lochaber): Croft, including two holiday rental properties on the Isle of Skye (i/ii). A house in Lanark (i),

Deidre Brock(Edinburgh North and Leith): A half share in two Edinburgh flats (i).

Lisa Cameron(East Kilbride, Strathaven and Lesmahagow): A house in South Lanarkshire (i/ii). Five residential and holiday let apartments in Edinburgh and South Lanarkshire (i/ii).

Martyn Day(Linlithgow and East Falkirk): A house in West Lothian (i).

Patricia Gibson(North Ayrshire and Arran): A flat in Edinburgh (i).

Calum Kerr(Berwickshire, Roxburgh and Selkirk): A house in Wester Ross (i/ii).

Chris Law(Dundee West): A flat in Dundee (i) and a flat in Aberdeen (i).

Angus Brendan MacNeil(Na h-Eileanan an Iar): Jointly owns a house in Fort William plus a flat in Glasgow and a flat in London (i/ii).

Stuart McDonald(Cumbernauld, Kilsyth and Kirkintilloch East): A flat in East Dunbartonshire (i).

John McNally(Falkirk): Owns a hair salon, The Barber Shop, from which he receives £600 a month in rent.

John Nicolson(East Dunbartonshire): A terrace house in London’s Tower Hamlets (i/ii). He occasionally receives income for renting it out for photoshoots.

Steven Paterson(Stirling): A half share in a flat in Stirling (i).

Tommy Sheppard(Edinburgh East): Commercial premises and residential property in Edinburgh (i) owned by entertainment company Salt ‘n’ Sauce Promotions of which he is a shareholder.
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Michelle Thomson(Edinburgh West): Two residential properties in Edinburgh, one in Falkirk, one on the Isle of Bute, one in East Calder, one in Stirling, one in Dollar, a half share of a property in Edinburgh and a quarter share of a property in Edinburgh (i/ii). She is a shareholder in the property management firm Your Property Shop.

Lord Hope appointed Chief justice of Abu Dhabi Global Market Court - as Human Rights abusing Gulf States turn to Scottish judges in move to corner global legal business

Lord Hope to head Global Court based in Abu Dhabi GULF STATES accused of human rights violations including public lashings, stoning, torture, forced disappearances & impositions of censorship and prohibition of a free press – are turning to retired Scottish judges in an effort to corner global legal business.

In an appointment announced earlier this week, Lord Hope of Craighead, the retired Scots law lord, has been appointed as Chief Justice of Abu Dhabi Global Market Courts ("ADGM"), to help establish the undemocratic Gulf state where elections are banned - as a leading international financial centre.

Lord Hope, who retired as Deputy President of the UK Supreme Court in 2013, will be responsible for presiding over ADGM’s legal framework through ADGM Courts of the First Instance and of Appeal.

Abu Dhabi Global Market (ADGM) has appointed a chief justice to head up the legal structure at the new financial free zone in the UAE capital.

The courts represent one of the three independent authorities within ADGM and will have jurisdiction over civil and commercial disputes on Al Maryah Island, the jurisdiction of ADGM.

Commenting on the appointment, His Excellency Ahmed Ali Al Sayegh, chairman of ADGM, said: “We are delighted and privileged to have Lord Hope join us as Chief Justice for our courts. Lord Hope is one of the most respected and experienced senior judges in the UK. His appointment is a testament to our resolve and commitment to delivering a truly world class international financial centre. Lord Hope will be instrumental in ensuring that our member institutions will be fully supported by ADGM’s robust and reliable international legal system when we become fully operational later this year.”

Lord Hope responded: “It is a very real personal honour for me to have been appointed to lead the setting up of Abu Dhabi Global Market Courts as their Chief Justice. Our aim is to establish an independent and first class judicial system, equipped with world class judges of unrivalled experience and integrity, to serve the needs of Abu Dhabi Global Market as a business-friendly and well regulated centre for global commerce.”

He added: “We will be working with the legal community and others locally, regionally and internationally, to ensure that our courts are as up to date, efficient and accessible as possible. We will be guided at all times by the ADGM’s core values of respect, trust, performance and responsibility. I look forward very much to meeting the challenges that lie ahead and making the best use of our opportunities in this exciting new environment.”

According to human rights organizations, the UAE is violating a number of fundamental practices. For example, the UAE does not have democratically-elected institutions and citizens do not have the right to change their government or to form political parties. There are reports of forced disappearances in the UAE, many foreign nationals and Emirati citizens have been abducted by the UAE government and illegally detained in undisclosed locations.In numerous instances, the UAE government has tortured people in custody and has denied their citizens the right to a speedy trial and access to counsel during official investigations.

Flogging and stoning are legal forms of judicial punishment in the UAE due to Sharia courts.^[3] The government restricts freedom of speech and freedom of the press, and the local media is censored in order to avoid criticizing the government, government officials or royal families. Freedom of association and freedom of religion are also curtailed.

Despite being elected to the UN Council, the UAE has not signed most international human-rights and labor-rights treaties, including the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights, the Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families, and the Convention against Torture. Journalists from overseas frequently record and document human rights abuses that occur within the UAE.

The United Arab Emirates (UAE) continued in 2014 to arbitrarily detain individuals it perceives as posing a threat to national security, and its security forces continued to face allegations that they torture detainees in pretrial detention. UAE courts invoked repressive laws to prosecute government critics, and a new counterterrorism law poses a further threat to government critics and rights activists. Migrant construction workers on one of the country’s most high-profile projects continued to face serious exploitation, and female domestic workers were still excluded from regulations that apply to workers in other sectors.

Arbitrary Detention, Torture and Fair Trial in the land of new Global Market Court:

In January 2014, 20 Egyptians and 10 Emiratis received five-year jail sentences on charges that they set up a branch of the Muslim Brotherhood in the country. They alleged that UAE authorities subjected them to torture in detention and denied them access to legal assistance for many months.

In August, authorities detained 10 Libyan businessmen, at least 2 of whom forcibly disappeared. In September, UAE authorities detained six Emiratis with suspected links to local Islamist groups. At time of writing, authorities have not charged any of the men, and their whereabouts remain unknown.

Two British nationals alleged that they endured torture in pretrial detention. Hasnan Ali, whom a court acquitted of drug charges in April 2014, alleged that police in Dubai beat and threatened to shoot and sexually assault him. Ahmed Zeidan, who received a nine-year sentence for drug possession in May 2014, alleged that police in Dubai held him in solitary confinement for eight days and threatened him with sexual assault. Both men claim they signed legal statements in Arabic, a language neither can read.

In February 2014, the UN special rapporteur on the independence of judges and lawyers criticized the lack of judicial independence in the UAE, arguing that the executive branch exerts de facto control over the judiciary. She also expressed concern over reports of the use of secret detention facilities and the ill-treatment and torture of individuals held in incommunicado detention.

First Minister says allegations involving struck off solicitor relating to property deals of SNP MP Michelle Thomson are “unacceptable if true”

First Minister at FMQs on claims about MP’s property deals. SCOTLAND’S First Minister told MSPs yesterday that allegations against an SNP MP would represent "completely unacceptable" behaviour if they are proven to be correct.

MP Michelle Thomson (SNP,Edinburgh West ) has been linked with property deals involving a solicitor – Christopher Hales - who has since been struck off by the Scottish Solicitors Discipline Tribunal (SSDT) in connection with 13 transactions in 2010 and 2011.

Speaking at First Minister's Questions, Ms Sturgeon said: "I said yesterday, I have said again today: the SNP had no prior knowledge of these issues.

Scottish Labour leader Kezia Dugdale said the issue was also a "moral matter" which she said had resulted in "vulnerable people being taken advantage of, as their homes are snapped up at knockdown prices".

Ms Sturgeon again insisted that she knew nothing of the allegations until they were reported by the Sunday Times.

She said: "I am in no doubt whatsoever in my mind that if the allegations - and again I stress the word allegations - are proven to be correct, they will represent behaviour that I find completely unacceptable."

The First Minister said it would be "unfair and inappropriate" to judge someone who maintains their innocence while an investigation was still ongoing.

She added: "But when we have all of the facts, when the investigation is concluded, I will take whatever decisions and whatever actions I deem necessary, but those decisions will be driven by facts and not by insinuation and the attempts of opposition parties to stir up political trouble and difficulty."

Ms Sturgeon also said it was "ridiculous" to suggest the SNP would allow a candidate to be put forward for election knowing there were "serious problems" over their integrity.

She added: "Our vetting procedures as a party are robust but we keep them under review, as I would hope every political party does.

"While we make all reasonable checks and ask all reasonable questions, by definition it is not reasonable to expect that matters of which we have no knowledge can be investigated."

First Minister's Questions re Michelle Thomson Scottish Parliament 1st October 2015

But Ms Dugdale accused the SNP leader of "running away" from Ms Thomson, who was the SNP's Westminster spokeswoman for business, innovation and skills and was heavily involved with the pro-independence Business for Scotland group ahead of last year's referendum.

She also said Ms Thomson had for the past two years "been right at the heart of everything the SNP stands for".

Ms Dugdale added: "I am not asking the first minister to comment on the specifics of a live investigation because I accept that criminal matters are for the police.

"But this is also a moral matter, and I would expect her to comment on that. What we have here is vulnerable families losing out for the financial gain of others.

"Vulnerable people being taken advantage of, as their homes are snapped up at knockdown prices. Can I ask the first minister, does she agree with me that profiteering from vulnerable families is just plain wrong?"

Ms Sturgeon responded: "Kezia Dugdale, although she disagrees with me, as she is entitled to do on a whole range of issues, I hope would accept that my commitment to social justice, and helping vulnerable people, like her's, is beyond any question."

Conservative leader Ruth Davidson questioned whether it was "believable" that no one in the SNP knew about the allegations.

She said: "We already know that the Crown Office and Police Scotland were asked whether they would investigate this case in July of last year.

"We know that the Law Society raised with the Crown Office in December.

"We know that journalists have been investigating it all summer and we know that the police were called in nearly three months ago.

"Yet the first minister is asking us to believe that nobody in the SNP, the party of government, from the constituency in Edinburgh West right up to the chief executive to the leader herself, knew anything about this until they read it in the paper almost two weeks ago."

In the decision issued by the Scottish Solicitors Discipline Tribunal (SSDT) which struck off Christopher Hales from the solicitors’ roll, the Tribunal came to a view “the solicitor must have been aware there was a possibility he was facilitating mortgage fraud.”

The decision stated: “The Tribunal had no hesitation in making a finding of professional misconduct. There were numerous breaches of the CML Handbook in respect of 13 different transactions involving an ongoing course of conduct which continued for a period of over one year. The Tribunal has made it clear on numerous occasions that institutional lenders are clients of Respondents in the same way as any other clients and are owed the same duties of care. The CML Handbook has been instituted to help prevent mortgage fraud and emphasise the reporting duties on the part of solicitors. In this case the Respondent had a clear duty to report the back to back transactions, cash backs, increases in prices and deposits being provided by a third party to the lender. These matters would have been very likely to have had a material effect on the lender's decision to lend. The Tribunal consider that the features of these transactions were such that the Respondent must have been aware that there was a possibility that he was facilitating mortgage fraud, whether or not this actually occurred. He generated fees on the basis of allowing this to occur. It must have been glaringly obvious to the Respondent that something was amiss when cash backs of £27,000 or £28,000 from the seller to the purchaser were involved.”

“There were so many breaches of the CML Handbook in these cases that the Respondent would have known that he did not have his client's authority to draw down the funds and accordingly the Tribunal also found it a breach of Rule 6 of the Accounts Rules. The Tribunal considered that not only did the Respondent fail to act in the best interests of his lender clients but he failed to act with the utmost propriety towards these lender clients. This is extremely damaging to the reputation of the legal profession.”

“The Tribunal took account of the Respondent's responses contained in the Executive Summary Report but did not consider that these provided any satisfactory explanation for what had happened. The Tribunal note that the Respondent has ceased practice and took account of the fact that the Respondent had cooperated by admitting the averments of fact, duty and misconduct. The Respondent however did not attend at the Tribunal to provide any mitigation in person.”

“In the whole circumstances, given the ongoing course of conduct, the large number of transactions involved, the Respondent's knowledge of the central role of Mrs A and Company 3, which should have set alarm bells ringing and the fact that this type of conduct is likely to bring the profession into disrepute, the Tribunal considered that it had no option other than to strike the Respondent's name from the Roll of Solicitors in Scotland.”

Prosecutors have instructed police to carry out an investigation into "alleged irregularities" relating to property deals in the year 2010/11 after the case was referred to the Crown Office by the Law Society of Scotland.

The society said concerns over potential criminal matters relating to the tribunal's findings were first raised "informally" with the Crown Office in December 2014, and then "formally" in July this year.

Ms Thomson's solicitor, Aamer Anwar, said in a statement released ahead of FMQs: "Michelle Thomson maintains that she has always acted within the law.

"In the interests of her constituents and her party she thought it best if she voluntarily withdrew from the party whip.

"There was no requirement for her to do so, even though she knew it would automatically lead to her suspension from the party. She did so in order to clear her name and return as quickly as possible to frontline politics.

"To that purpose we have contacted Police Scotland at Mrs Thomson's request advising them of her wish to assist with their investigation if, or when, they wish to speak to her."

Conflict of Interest accusations hit Law Society of Scotland as employee who sat in on decision to refer SNP MP’s struck off solicitor to Crown Office is linked to pro-indy lawyer group

Sheila Kirkwood, a founding member of Lawyers for Yes. AN EMPLOYEE of the Law Society of Scotland who sat on a committee considering the case of a solicitor linked to SNP MP Michelle Thomson’s property dealings - was also a leading pro-independence activist.

And, papers reporting brief details of the meeting feature no declarations of interest by Kirkwood or any other members of the Committee which then decided to refer the matter to prosecutors.

Sheila Kirkwood, secretary of the same Guarantee Fund Sub-Committee which eventually took the decision to refer the matter of Christopher Hales to the Crown Office in July 2015 – four years after the event – has since been identified as a founding member of Lawyers for Yes – a pro-independence group set up ahead of the Scottish independence referendum held last September 2014.

Kirkwood also endorsed Michelle Thomson on her Facebook page.

Within the minute of the meeting in which Kirkwood was present as secretary of the Guarantee Fund Sub-Committee, there is no mention of any declarations of interests by members of the committee - including Kirkwood.

Facing calls to explain a significant & potential conflict of interest, Lorna Jack, Chief Executive of the Law Society of Scotland, said she was “confident there was no conflict of interest”.

Chief Executive of the Law Society of Scotland, Lorna Jack, issued the following statement at a press conference held at 3.15pm, 1 October 2015:

“The Law Society’s number one regulatory priority is to protect the public from any wrong doing by solicitors. As I have previously commented, following a routine inspection of the accounts of law firm Grigor Hales of Gorgie Road, Edinburgh in July 2011, we believed Christopher Hales had not met the required standards of professional conduct.

“We therefore took action to protect the public by suspending Mr Hale’s practising certificate in September 2011. There is a duty on us as a regulator to report suspicious activity quickly to the appropriate authorities. Such reports and timings or information about the report are confidential by law.

“I want to stress that Law Society employee Sheila Kirkwood has not acted unprofessionally or inappropriately at any time. Sheila is a hard-working, dedicated colleague. She had no involvement in taking papers on the Christopher Hales case to the Law Society Guarantee Fund sub-committee and in no way delayed these papers being taken to the committee. Sheila’s role as secretary to the committee is to write the minute.

“The names of Christopher Hales’s clients were not included in any Law Society papers that Sheila handled.  The first time Sheila realised Michelle Thomson was involved in the Christopher Hales case was from recent media reports.

“Sheila is entitled to her personal political views. The Law Society is a non-partisan organisation. However, we do not stop our staff from holding or expressing their own views in their personal lives.  People in Scotland are legally entitled to express their personal opinions.”

“I am confident there was no conflict of interest in relation to Sheila’s role at the Law Society.”

However – Lorna Jack could not explain why the minute of the meeting released by the Law Society (published below) contains no recusal or declaration of interest of those in attendance.

GUARANTEE FUND SUB COMMITTEE:

Minute of Meeting of the Guarantee Fund Society of Scotland held at 26 2 July 2015 at 9.30am

GRIGOR HALES, EDINBURGH - 20732

Date Considered 2 July 2015

Sub-Committee Members Present 6 solicitors; 5 non-solicitors

Papers considered by Sub-Committee None. This matter was the subject of a verbal report.

Background

The Sub Committee reminded itself that it had previously withdrawn the Practising Certificate of Mr Christopher Hales and that he had subsequently been struck off by the Scottish Solicitors Discipline Tribunal (SSDT). Mr Hales had been the sole partner at the firm which had also ceased. The Sub Committee were asked to consider whether comments made by the SSDT justified a referral of the matter by the Law Society of Scotland to the Crown Office.

Sub Committee's Deliberations

It was noted that the SSDT decision states that "Mr Hales must have been aware that there was a possibility that he was facilitating mortgage fraud" and that "it must have been glaringly obvious to the Respondent that something was amiss when cash backs of £27,000 or £28,000 from the seller to the purchaser were involved".

Sub Committee's Decision

The Sub Committee decided that given the statements made by the SSDT following a complaint arising from a Financial Compliance inspection, that the matter should be referred to the Crown Office for investigation.

Delegated Powers..

To refer the above matter to the Crown Office for investigation

The Guardian newspaper reported: The row over the official handling of the case deepened further after the Law Society confirmed that its head of investigations, Ian Messer, had received a detailed report from the Scottish Solicitors’ Discipline Tribunal (SSDT) naming Thomson, her husband Peter and Thomson’s business partner Frank Gilbride in July 2014.

Messer first informally told the Crown Office in December 2014 that Hales had been struck off by the SSDT for suspected mortgage fraud, during a routine quarterly meeting between the two organisations. Crown Office lawyers asked Messer to provide them with detailed case files but failed to get them.

At the next meeting on 28 April 2015 – a week before Thomson was elected as MP for Edinburgh West – the Crown Office asked again for the Hales case files. They were not submitted to the Crown Office until 3 July 2015; six days later, the Crown Office alerted fraud officers at Police Scotland, who launched a formal investigation.

Those fresh details emerged when the Law Society’s chief executive, Lorna Jack, took the unusual step of arranging a hurried press conference to defend her organisation’s handling of the affair, and the conduct of Sheila Kirkwood, who is secretary to the society guarantee fund sub-committee which handled the Hales case but had delayed handing the papers over to the Crown Office.

It emerged that Kirkwood was, with her husband and fellow solicitor Paul Kirkwood, a founder of the pro-independence campaign Lawyers for Yes, and as an active nationalist had attended dinners for Thomson’s pro-independence campaign Business for Scotland. Kirkwood had also “liked” Thomson on her Facebook page.

Jack insisted that Kirkwood had had no direct say over the Law Society’s handling of the case against Hales, but she admitted that no independent investigation had yet taken place into whether Kirkwood was aware that Thomson was linked to Hales’s property dealings.

Jack said she had taken Kirkwood at her word that she first became aware of that link when Thomson was named in the media earlier in September.

“I want to stress that Law Society employee Sheila Kirkwood has not acted unprofessionally or inappropriately at any time,” Jack said. “Shelia is a hard-working, dedicated colleague. [I] am confident there was no conflict of interest in relation to Sheila’s role at the Law Society.”

Although it took until July 2015 before the Crown Office and police were handed the case files against Hales, Jack confirmed that the Law Society first became alerted to Hales’s mortgage dealings with Thomson in July 2011 during a routine inspection of his firm’s books.

He was suspended in September 2011 “to protect the public”, she said. “The Law Society’s No 1 regulatory priority is to protect the public from any wrongdoing by solicitors,” she added.

Jack implied too that the Law Society would also have alerted the police to any suspicions because of its legal duties under the Proceeds of Crime Act, but she repeatedly refused to elaborate on whether and when that had been done with the Hales case.

“Under the Proceeds of Crime Act, there is a duty on us as a regulator to report suspicious activity quickly to the appropriate authorities. Such reports and timings or information about the report are confidential by law,” she said.

The “Guarantee Fund” of the Law Society of Scotland is possibly one of the murkiest self protection mechanisms operated by the legal profession’s in-house self regulator.

The Guarantee Fund is tasked with paying out compensation to victims of corrupt or rogue solicitors.

However, the Guarantee Fund has racked up numerous accusations of obstructive tactics and deliberate falsification of facts to prevent financially ruined clients securing full compensation for their losses to rogue Scottish solicitors.

Claims against the Guarantee Fund are known to be in the millions of pounds annually.

Shockingly, the percentage of compensation eventually secured as a payment from the fund where some cases can take 5-10 years to be heard - can be as little as 5% to 10% of a client’s total financial losses to rogue solicitors.

The ‘aims’ and functions of the Guarantee Fund sub-Committee as claimed by the Law Society of Scotland, but rarely fulfilled in reality, are:

• oversee the fulfilment of the statutory obligations of the Law Society of Scotland regarding the Guarantee Fund and financial compliance
• ensure that risks to the Guarantee Fund are managed to an agreed and acceptable level
• ensure that Guarantee Fund operations are in accordance with stated Guarantee Fund policy
• protect the Guarantee Fund, the profession and the public interest by dealing properly and promptly with significant cases of non-compliance with accepted financial compliance standards (eg accounts rules/money laundering regulations)
• influence strategic developments regarding financial compliance and the Guarantee Fund to ensure that processes remain up to date and fit for purpose
• enable effective communications with the profession, public and other stakeholders  regarding financial compliance standards and Guarantee Fund claims
• benefit the Guarantee Find/financial compliance processes by acting as a source of expertise on relevant working practices and issues within the legal profession
• monitor financial compliance activity (planning, progress, quality & approach)
• review outputs from financial compliance activity (including the conducting of interviews) and where appropriate (eg as a result of breaches in accounts rules or money laundering regulations), refer matters of professional conduct to the Scottish Legal Complaints Commission and Complaints Investigation Team for investigation or recommend other actions (eg interventions, judicial factories etc) in accordance with the scheme of delegation
• monitor the consistency and quality of Guarantee Fund claims and intimations processing
• decide upon Guarantee Fund claims (as detailed in the delegated powers) or refer to the Professional Conduct Committee, as appropriate.
• consider and approve strategic policy matters related to financial compliance and Guarantee Fund matters
• consider the continuing adequacy of accounts rules and other guidance to protect the Guarantee Fund, the profession and the public, monitor the development of new or amended rules and recommend these for approval.
• review financial compliance activity to inform and influence the profession, public and other stakeholders about relevant financial standards, compliance requirements and claims issues
• monitor Guarantee Fund risk management procedures and approve
• key policies related to insurance arrangements, financial reserve levels, investment decisions and firms which pose a risk to the fund
• monitor the financial position of the Guarantee Fund and recommend approval of the annual budget and annual subscriptions to the Council
• be made aware of operational developments in the workings of the financial compliance and Guarantee Fund functions

The struck off solicitor, and the MP who ‘took advantage’ of homeowners - Michelle Thomson - the SNP Member of Parliament with 17 homes

Lawyer involved in property deals with Michelle Thomson - was struck off by tribunal. A SOLICITOR - Christopher Hales, who acted for Edinburgh West MP Michelle Thomson and her husband in multiple property deals, has been struck off for professional misconduct over his part in 13 deals involving Ms Thomson or M&F Property Solutions, of which she was a partner.

Michelle Thomson, the party’s shadow minister for business, innovation and skills, has been accused of taking advantage of vulnerable families by building a property portfolio worth about £1.7 million by buying homes at knockdown prices from families struggling to pay their mortgages.

Hales, who once listed his occupation as “Police Constable” – and is now struck off by the Scottish Solicitors Discipline Tribunal from working as a solicitor - handled numerous property deals for his client – SNP MP Michelle Thomson. Mr Hales acted for Ms Thomson before she was elected as an SNP MP.

According to a ruling by the Scottish Solicitors’ Discipline Tribunal, a full version of which has been published by the Sunday Times, Mr Hales failed to provide key information to mortgage lenders in breach of guidelines designed to prevent fraud in numerous cases.

The decision to strike off Christopher Hales came to a view “the solicitor must have been aware there was a possibility he was facilitating mortgage fraud.”

The decision stated: “The Tribunal had no hesitation in making a finding of professional misconduct. There were numerous breaches of the CML Handbook in respect of 13 different transactions involving an ongoing course of conduct which continued for a period of over one year. The Tribunal has made it clear on numerous occasions that institutional lenders are clients of Respondents in the same way as any other clients and are owed the same duties of care. The CML Handbook has been instituted to help prevent mortgage fraud and emphasise the reporting duties on the part of solicitors. In this case the Respondent had a clear duty to report the back to back transactions, cash backs, increases in prices and deposits being provided by a third party to the lender. These matters would have been very likely to have had a material effect on the lender's decision to lend. The Tribunal consider that the features of these transactions were such that the Respondent must have been aware that there was a possibility that he was facilitating mortgage fraud, whether or not this actually occurred. He generated fees on the basis of allowing this to occur. It must have been glaringly obvious to the Respondent that something was amiss when cash backs of £27,000 or £28,000 from the seller to the purchaser were involved.”

“There were so many breaches of the CML Handbook in these cases that the Respondent would have known that he did not have his client's authority to draw down the funds and accordingly the Tribunal also found it a breach of Rule 6 of the Accounts Rules. The Tribunal considered that not only did the Respondent fail to act in the best interests of his lender clients but he failed to act with the utmost propriety towards these lender clients. This is extremely damaging to the reputation of the legal profession.”

“The Tribunal took account of the Respondent's responses contained in the Executive Summary Report but did not consider that these provided any satisfactory explanation for what had happened. The Tribunal note that the Respondent has ceased practice and took account of the fact that the Respondent had cooperated by admitting the averments of fact, duty and misconduct. The Respondent however did not attend at the Tribunal to provide any mitigation in person.”

“In the whole circumstances, given the ongoing course of conduct, the large number of transactions involved, the Respondent's knowledge of the central role of Mrs A and Company 3, which should have set alarm bells ringing and the fact that this type of conduct is likely to bring the profession into disrepute, the Tribunal considered that it had no option other than to strike the Respondent's name from the Roll of Solicitors in Scotland.”

 Solicitor in Thomson's house deals struck off

Sunday Times 27/09/2015

Mark Macaskill ; Jon Ungoed-Thomas

NICOLA STURGEON'S frontbench spokeswoman on business has been involved in a series of property deals exposed as possible mortgage fraud, according to a public ruling.

Michelle Thomson, the Edinburgh West MP and Scottish National party's shadow minister for business, innovation and skills, was involved in the suspect deals in 2010 and 2011. Many of the vendors were "distressed" and anxious to sell. Thomson has strongly denied any wrongdoing.

The solicitor, Christopher Hales, who acted for Thomson, was struck off last year for professional misconduct over his role in the deals.

All of the 13 transactions for which Hales was struck off involved Thomson or the property venture M&F Property Solutions, in which a tribunal stated she was a partner.

The 53-page Scottish Solicitors' Discipline Tribunal ruling states the "central role of Michelle Thomson and M&F Property Solutions in a number of these transactions should have set alarm bells ringing". A redacted version of the ruling was published last year but released in full to The Sunday Times last week.

It said Hales "must have been aware that there was a possibility he was facilitating mortgage fraud, whether or not this occurred". In some cases loans obtained for the properties were greater than the actual purchase price. Hales failed to provide the mortgage company with key information that is used to prevent fraud.

The correct facts — if they had been provided to the lender — may have had "a material effect on the decision to lend", the tribunal ruled.

The Sunday Times revealed last week that Thomson and her husband, Peter Thomson, a music teacher, had built up a property portfolio, worth about £1.7m according to Registers of Scotland documents, by buying homes at knockdown prices from families in financial hardship.

It also reported claims from families of discrepancies on the land registry, alleging that the price on official records was higher than the amount received by vendors. Peter Thomson, who bought some of these properties, denies any wrongdoing and official documents show vendors confirmed the sale values.

The Law Society of Scotland said last week it was examining the property transactions detailed by this newspaper's investigation. It can prosecute cases before the Scottish Solicitors' Discipline Tribunal. A tribunal document also confirmed Michelle Thomson's role in mortgage deals set out at the disciplinary hearing against Hales, a former partner at Grigor Hales in Edinburgh, in May last year.

In one of the deals, Sarah Capper, 77, responded to a newspaper advertisement to sell her three-bedroom home in Stirling in the autumn of 2010. Capper says she had bought it for £79,000 about two years previously and spent £50,000 on refurbishments, including a new kitchen and a conservatory.

Capper, who has two sons, three grandchildren and two great-grandchildren, was being treated for skin cancer, which is now in remission, and was anxious to return to England to be near her family. She was offered £64,000 for the house by Frank Gilbride, a former journalist who was a business partner of Thomson.

Capper reluctantly accepted the offer and the house was sold to Gilbride on November 19 2010. On the same day Michelle Thomson bought it from Gilbride for £95,000, but she then received a "cashback" from Gilbride of £28,181.80.

Hales, Thomson's lawyer, did not inform the lender — The Mortgage Works — that the property had been bought and sold in a "back-to-back" transaction and that Thomson had got it at a discount, because of the cashback.

The tribunal ruled that it must have been "glaringly obvious" to Hales that something was "amiss".

Capper, a widow who now lives in Henfield, West Sussex, said last week she wanted an explanation of why Gilbride and Thomson had bought and sold her house on the same day with a £31,000 mark-up.

She said: "I am livid. My daughter-in-law had told me not to accept the offer, but I had to do it. I sold it to get back to England and see my family.

"I had cancer, and I had no one to fall back on. I could have got a lot more money if I had gone to an estate agent. I am struggling now."

In June 2010 Michelle Thomson bought a three-bedroom terraced house near Aberdeen for £245,000 and sold it a few hours later to someone she knew for £315,000.

The tribunal ruled that the quick sale — or "back-toback" transaction — was not disclosed by Hales to the mortgage lender, contrary to the Council of Mortgage Lenders Handbook.

Experts say back-to-back transactions by two parties operating together can be used to secure a larger mortgage than would otherwise be available. It can also reduce tax, by recording a higher price on the land registry than was actually paid. It means when the property is later sold, the profit — which is subject to capital gains tax — may be understated by thousands of pounds.

In 10 of the other deals for which Hales was struck off, M&F Property Solutions, in which both Thomson and Gilbride were partners, provided deposits to other homebuyers.

The tribunal said Hales should have told their lenders that some of the funds were "not provided by the purchaser".

The tribunal ruled that it had no other option than to strike Hales from the register, the most severe sanction at its disposal.

It said his actions had been "extremely damaging" to the reputation of the legal profession. The Mortgage Works, which provided a loan for Thomson for Capper's home, would not say whether it was investigating the matter, but said solicitors were required to warn them of any back-toback transaction.

Thomson, 50, trained as a musician at the Royal Scottish Academy of Music and Drama but later embarked on a business and property career. Her husband teaches music at St George's School for Girls, a private school in Edinburgh.

Last month her email address appeared on the list released by hackers of the infidelity website Ashley Madison. She said the email address was out of date and that she was the victim of a smear.

Registers of Scotland records show at least 17 homes in Scotland are owned by Thomson, her husband or the couple jointly. The Thomsons say they operate to the highest ethical standards, and that they provide support and advice for struggling families.

Sandra and Garry Kelly, who sold their Edinburgh home to Peter Thomson in 2009, said they intend to lodge a complaint with the Scottish Legal Complaints Commission. The couple say they were offered £73,000 by an intermediary for their home, but legal papers say the price to be paid by Peter Thomson was £105,000.

Sandra Kelly said she signed this document because she was told it was a condition of the sale, but insists the actual price was £73,000.

A spokesman for Michelle and Peter Thomson said land registry documents showed that the Kellys had acknowledged receipt of the sum of £105,000 for their property. The spokesman previously said the Thomsons "vigorously deny any allegation of wrongdoing or impropriety".

A spokesperson for Michelle Thomson said: "Michelle has always acted within the law and will be giving no further comment."
Gilbride did not respond to a request for comment. Hales was not available for comment.

A spokeswoman for the Law Society of Scotland said: "The Law Society is considering the information it has received and which has been reported in The Sunday Times."

Former Lothians politician & solicitor who was jailed for stealing £70K from disabled friend lands new job as boss of EU funded Moray Leader

A FORMER solicitor & Tory politician who was jailed for 27 months after stealing at least £70,000 from a disabled client who depended upon him as a close friend – is now handling public cash & EU money flowing into Scotland.

Iain Catto (51) is now the boss of funding programme Moray Leader, an EU funded project run by Moray Council which is also part of the Scotland Rural Development Programme (SRDP).

Catto - formerly a member of Lothian Regional Council from 1990 to 1994 was sacked from his job as a solicitor for gross misconduct. Iain Catto was also censured by the Scottish Solicitors Discipline Tribunal.

Catto was jailed in 2008 after Edinburgh Sheriff Court heard he systematically stole sums of £11,000 and £9,000 at a time between December 2002 and 2004 from the criminal injuries pay-out his client Francis Fleming - had received. He even sold some of his victim's shares to get more cash.

The Scottish Sun newspaper reports:

CHARMED ROBBER

Thieving brief's new job doling out public cash

By Russell Findlay Scottish Sun  21/09/2015

A FORMER Tory politician who stole £70,000 from a disabled friend has landed a new job handing out taxpayers' cash.

Crooked ex-lawyer Iain Catto was jailed for 27 months after fleecing partially paralysed Francis Fleming.

But he is now the boss of funding programme Moray Leader, which has given away £2million of public money to good causes.

And Catto, 51, also works for charity Foundation Scotland as a "community engagement executive".

Last night his victim's son Frank MacLennan, 51, slammed the decision to hire the ex-con.

He said: "It's a disgrace, he should not be in a trusted position.

"I'm surprised that anyone would give him jobs like these."

Frank, of Falkirk, added: "He should not be working with large sums of money — especially public and charity money."

Former councillor Catto was a rising star in the Scottish Conservatives and worked for blue-chip law firms in Edinburgh.

Brother He befriended his client Francis and pretended to be looking after his finances. Catto became so trusted he even had a key to his victim's home in the capital.

But he stole blank cheques and blew the haul on flights, hotels, meals and a £300 booze splurge.

After he was brought to justice in 2006, his victim Francis, 69, said: "I trusted him better than my brother.

"I thought all his advice was for my own good — I didn't realise he was doing me out of all I had."

Catto, now living in Elgin, joined Moray Leader in July 2013 and works as the programme coordinator. It is run by Moray Council and funded with EU cash.

In April this year Catto joined Foundation Scotland, which covers Moray, Aberdeenshire and Angus.

The charity's website mentions his law degree but not his conviction. A spokesman said: "Iain Catto made us aware of his past.

"We believe everyone should be given a second chance."

Moray Council added: "He was open about his past when we interviewed him. He is not in a position where there is a risk to public funds."

Catto refused to comment.

A NEW BRIEF?

Iain Catto’s Foundation Scotland profile shows no mention of his criminal past:

Iain joined the Foundation in April 2015 and works part time covering Moray, Aberdeenshire and Angus. He is based in Elgin, and currently spends the rest of his working week working for the Moray LEADER Programme, an EU funded rural development grants programme as its Programme Co-ordinator, where he was full time prior to joining Foundation Scotland. Iain has an honours degree in law, and spent much of his working life operating in Edinburgh. He has been a volunteer for various voluntary organisations over the years, including ones operating with the elderly, young people, and in the field of education.

Iain was brought up in rural areas of Perthshire and Ross-shire, and therefore understands some of the challenges facing rural communities. Iain in his spare time is a follower of Ross County, Leeds United and professional cycling, and is an active member of his local community council, where his particular focus is on transportation issues and licensing matters.