BANKRUPTCY PROBE: Creditors & law firms in judicial conflict case linked to top judge - were excluded from sequestration by Trustee handed role by law firm linked to bust £400M Heather Capital Hedge Fund & Court of Session illegal fee deal judgement

QC branded Levy & Mcrae 'untrustworthy' in £6m case. A LAW FIRM branded "untrustworthy" by a senior QC, and which once stood accused of transferring millions linked to the collapsed £400m Heather Capital Hedge Fund - is now at the centre of a case linked to judicial conflicts of interest, and the resolution of two remaining issues in a controversial sequestration linked to Scotland’s top judge.

Levy & Mcrae - the Glasgow based law firm who were recently found to have constructed an illegal fee agreement along with Advocate Jonathan Brown - in a case involving A&E Investments & businessman Robert Kidd - are now accused of appointing a trustee - Kenneth Pattullo of insolvancy practitioners Begbies Traynor - who hindered and excluded creditors attempts to secure consideration of legitimate debts including legal fees & legal funding of Mr Nolan’s case.

Files now handed to the ongoing media investigation - reveal that two remaining issues of the long running Nolan v Advance case - relate to the deliberate exclusion of creditors in the sequestrations of Mr Nolan and his partner - after their £6m action against Advance Construction - heard by Lord Woolman in the Court of Session - scored a victory on principle - but lost out on legal expenses.

The documents - released by the Accountant in Bankruptcy - reveal creditors - including solicitors who provided legal services, and the providers of significant legal funding which enabled Mr Nolan to go into the Court of Session and secure the win against Advance Construction - still await a consideration of sums due to them from the sequestrations.

However, further enquiries and responses from the Accountant in Bankruptcy now indicate the Trustee Kenneth Pattullo - who was directly appointed by Levy and Mcrae at Hamilton Sheriff Court in the sequestrations of both Mr Nolan and his partner - did not take account of either of the significant debts – which comprise most of Mr Nolan’s legal fees and legal expenses.

Instead – records show that Mr Pattullo and others at Begbies Traynor – did not reply to enquiries from legitimate creditors and solicitors - and focused on selling off a portfolio of properties including substantial plots of land in Wishaw, and a valuable farm - to pay Mr Pattullo’s own fees, and an offshore vulture fund known as Promontoria – which bought additional debt incurred by Mr Nolan and his partner from the secured lender – The Clydesdale Bank.

In a response to a request for review - Alex Reid of the AIB commented "Representation has been received highlighting that neither Mr Nolan nor his solicitor [redacted] received notification of any meeting of creditors. In accordance with Section 21A of the Act the trustee must give notice to every creditor known to him, at the time, whether or not they intend to hold a creditor meeting..."

However, it can be revealed the AIB have previously been presented with copies of confidential emails from law firms to Mr Pattullo’s office - showing multiple requests by lawyers to contact Begbies Traynor to establish communication and a consideration of positions regarding legal fees, and legal funding provided to Mr Nolan for his court case.

The new evidence raises questions of why Begbies Traynor did not acknowledge creditors attempts to communicate with the Trustee while there are multiple references within the released files to legal fees geneerated by Levy & Mcrae for their client - Advance Construction (Scotland) Ltd.

The files also slow some Edinburgh based law firms who did act on behalf of Mr Nolan were included in the sequestration - while other law firms, creditors and providers of legal funding do not appear.

With over 1000 documents released by the AIB currently being studied - it can now be reported that the two remaining creditors have now secured significant backing to present their case for consideration of debts and repayment to the Accountant in Bankruptcy – who are expected to remain involved in this process for some time.

Within the sequestration files released by the Accountant in Bankruptcy, legal fees for Advance Construction appear to amount to around £212K – which is in the form of legal fees the company are alleged to have paid Levy & Mcrae, and Gavin Walker & Roddy Dunlop QC.

However – legal sources close to the case have raised questions over the ‘small’ sum of £212K - given the length of the case and lawyers who represented Advance - such as Peter Watson, Jamie Robb and Ewen Campbell, with the addition of Gavin Walker QC and Roddy Dunlop - the current Dean of the Faculty of Advocates.

To compare – the legal fees of around £212K used by Advance Construction to sequestrate both Mr Nolan and his partner are much less than Mr Nolan's legal costs – which are estimated at up to £500,000.

Mr Nolan’s legal fees including include hiring of construction site plant & equipment, use of multiple law firms including Biggart Baillie, Tods Murray, and John Campbell QC, advocate Craig Murray, solicitor Gavin McPhail and additional inspection and survey reports on contaminated material which culminated in Advance Construction being forced to admit in court they had dumped the contaminated material  illegally on Mr Nolan’s land.

And, while it is a matter of record the pursuer - Mr Nolan - won his action against Advance Construction in the Court of Session - his own QC - John Campbell - inexplicably withdrew his own client's claim for legal expenses - which would have seen most or all of the legal fees and legal funding paid by the defenders had Mr Campbell returned to court for the expenses hearing.

A law accountant who has studied the case is of the view that had Mr Nolan’s counsel - John Campbell QC made the usual court claim for legal expenses against Advance Construction – Lord Woolman or any judge hearing the exepnses claim would have granted much of Mr Nolan’s legal expenses along with his victory in the case against the defenders – Advance Construction.

However, Mr Campbell did not follow through with instructions to appear at an expenses hearing and lodge a full claim for Mr Nolan’s legal expenses.

Mr Campbell has not offered any explanation for his refusal to lodge an expenses claim for his client’s winning case, and instead was found to have withdrew much of the claim without any instruction to do so.

A full report on how John Campbell QC reduced his own client’s financial claim almost to zero and without any instruction or consultation - can be found here: CASHBACK QC: Legal regulator’s files reveal senior QC reduced claim without instructions, withheld key evidence & witnesses including Cabinet Secretary from Court of Session case

A further investigation of John Campbell’s involvement in the case revealed the senior QC signed a no-win-no-fee agreement with his client Mr Nolan – then went back on it’s terms after Campbell refused to appear for the expenses hearing and the case had concluded.

A full investigation of Campbell’s fee scam and the Faculty of Advocates role in concealing undeclared cash payments to Campbell is reported in further detail here: CASH ADVOCATE: £9K consultations & £75K meetings - Edinburgh Quaich Project Charity QC Boss scammed clients on no-win-no-fee deal - Faculty of Advocates files reveal extent of Advocates cash-for-fees HMRC tax dodge scam

Ironically, during discussions with his clients - John Campbell himself described Levy and Mcrae as "untrustworthy" and

An earlier investigation revealed Trustee Kenneth Pattullo of Begbies Traynor was directly appointed by Levy and Mcrae at Hamilton Sheriff Court in the sequestrations of both Mr Nolan and his partner.

Documents previously published revealed Levy & Mcrae altered the appointment of the AIB in the sequestration of Mr Nolan’s partner to that of their own preferred choice – Mr Pattullo.

Now – fresh questions over the conduct of the Accountant in Bankruptcy have now been raised after documents revealed Levy & Mcrae requested the AIB become Trustee in the sequestration of Mr Nolan – in Jamuary 2015.

The letter and petition, published here:  Petition to appoint AIB January 2015 Jamie Robb Levy Mcrae reveals Jamie Robb of Levy & Mcrae asked the AIB to assume the position of Trustee in their sequestration of Mr Nolan in January 2015.

Records then show Levy & Mcrae went on to appoint Mr Pattullo in the same unusual manner in Mr Nolan’s sequestration – and the AIB did nothing in either case – despite having the power to intervene and call a meeting of all interested parties including debtors & creditors alike to find a way forward after the court’s alteration of an appointment where the court did not appear have the power to act.

A previous report published material which questioned the court’s improper use of powers to switch out Trustees in the sequestration of Mr Nolan and his partner from the Accoutant in Bankrutpcy to Mr Pattullo, here: FIRE SALE: AIB face sequestration probe as files reveal Trustee was paid £20K by vulture fund to sell home & firebombed farm five days after targeted attack on couple at centre of land case linked to top Scots judges, an ex-Sheriff, an asbestos dumping building company & law firm Levy and Mcrae

And, an earlier investigation revealed Scotland’s top judge – Lord Carloway (Colin Sutherland) – deliberately concealed his own links to this case while he faced questions in the Scottish Parliament from MSP Alex Neil and members of the Public Petitions Committee, here: JUDGE OF CONFLICT: Top judge who attacked MSPs over judicial interests probe – failed to declare relative’s role at law firm targeting MSP’s constituents’ home & farm in £6M court case linked to Lord Malcolm conflict of interest scandal

Nolan v Advance Construction Scotland Ltd [2014] CSOH 4 CA132/11 is the same case which exposed serious conflicts of interest in Scotland’s judiciary – notably where Lord Malcolm (Colin Campbell QC) failed to disclose on multiple occasions - the fact Lord Malcolm’s son – Ewen Campell - represented the defenders in the same court.

The investigation into the Lord Malcolm case of serious failures to declare conflicts of interest, is reported in further detail here: CONFLICT OF INTEREST: Papers lodged at Holyrood judicial interests register probe reveal Court of Session judge heard case eight times - where his son acted as solicitor for the defenders.

LAW FIRM AT CENTRE OF ILLEGAL FEES & CONFLICT OF INTEREST CASE:

Earlier this year, Levy & Mcrae - the same law firm who masterminded the Advance Construction case in the Court of Session, and the resulting sequestrations of the pursuers in a case now linked to Scotland's top judge Lord Carloway - were found by Lord Doherty to have constructed an illegal fee agreement after a ruling by Lord Doherty.

Levy & McRae had billed their former client - businessman Robert Kidd the seven-figure sum after representing him in a successful damages claim against another firm of solicitors.

The £19 million settlement figure was paid to Levy & Mcrae - after the firm deducted it's legal fees which included £3million of “success fees” for winning the case.

Mr Kidd then launched a legal action against Levy & McRae, claiming it should not have charged him the success fees on top of its legal fees.

The case was heard by Lord Doherty - who later ruled the fees were “illegal and unenforceable”,

The judge said the fees breached a legal principle designed to prevent conflict of interest when a lawyer has a financial stake in the amount a client gets in compensation.

The £6million sum included a basic fee to Levy & McRae of £2.1million plus a success fee of £1.89million while advocate Jonathan Brown was paid £1.1million plus a success fee of £990,000.

Lord Doherty said: “The substance of what was agreed was that the defenders’ (Levy & McRae and Jonathan Brown) remuneration would increase in proportion to the sum recovered.

“That gave them a clear ­pecuniary interest – a stake – in the amount recovered.

“In my view, that pecuniary interest created a conflict of interest which gave rise to an unacceptable risk that the proper administration of justice might be obstructed.”

Levy and Mcrae have lodged an appeal against the decision by Lord Doherty.

The full judgment from Lord Donerty is here: A&E Investments Robert Kidd v Levy & Mcrae and Jonathan Brown - Lord Doherty 2020csoh14

And more a recent report in the Sunday Post Top advocate found guilty of “unsatisfactory professional conduct” after charging client extra fee of almost £1 million reports the Advocate Jonathan Brown was found guilty of “unsatisfactory professional conduct” after charging his client - Robert Kidd an extra fee of almost £1 million for representing him in a successful £20m damages action against another firm of solicitors.

The case arose after Mr Kidd hired lawyers, including Mr Brown, to sue his former solicitors over the sale of his oil firm ITS. Mr Kidd said Mr Brown had failed to tell their QC Andrew Smith details of the arrangement which brought his total bill to £2m.

The Sunday Post further reported that the Faculty of Advocates Disciplinary Committee has since made a finding of unsatisfactory professional conduct against Mr Brown, ruling that he should have informed Andrew Smith QC that he had an arrangement with Mr Kidd by which his fee increased according to the amount recovered from the opponent, and how the amount on which the success fee was measured should be calculated.

Mr Kidd’s spokesman Jim Diamond told the Sunday Post: “We’re very happy with the decision of unsatisfactory professional misconduct. We want the success fee repaid in full plus interest at 8%. We will also be seeking repayment of our legal fees in this matter which could amount to more than £100,000.”

Levy & Mcrae - Court papers reveal their part in Heather Capital hedge fund writ

Detailed documents submitted to the Court of Session as part of a now abandoned writ against Levy & Mcrae and their former partner Peter Watson - revealed the following acts attributed to Levy & Mcrae and Heather Capital:

[21]      In the Levy Mcrae case:

• On 4 January 2007, Heather Capital transferred £19 million to its client account with Levy & Mcrae (Lord Doherty paragraph [5]).

• On 24 January 2007, Heather Capital transferred £9.412 million to its client account with Levy & Mcrae (Lord Doherty paragraph [5]).

• The money was intended to be loaned to a first level SPV Westernbrook Properties Ltd (WBP) for onward lending to second level SPVs (Lord Doherty paragraph [5]).

• On 9 January 2007, Levy & Mcrae transferred £19 million to a Panamanian company (Niblick) owned and controlled by Mr Levene:the money was not therefore transferred to WBP.The transfer was undocumented and without security (Lord Doherty paragraph [5], and Condescendence 6 and 17, pages 20 and 44 of LM reclaiming print).

• By a memorandum dated 17 March 2007, Heather Capital’s auditors KPMG “identified a number of concerns relating to the documentation provided in respect of these loans”.Further work and information was required (Condescendence 5, page 13 of Levy & Mcrae reclaiming print).

• On 29 March 2007, Levy & Mcrae transferred £9.142 million to Hassans, solicitors, Gibraltar, under the reference “Rosecliff Limited” (a company controlled by Mr King):the money was not therefore transferred to WBP.The transfer was undocumented and without security (Lord Doherty paragraph [5], and Condescendence 6 and 17, pages 20 and 44 of LM reclaiming print).

• In April to June 2007, amounts equivalent to the loans thought to have been made to WBP (including accrued interest) were “repaid” to HC via Cannons, solicitors, Glasgow.The directors were unable to ascertain the source of these repayments (Lord Doherty paragraph [7]).

• Approaches made by Heather Capital to Mr Volpe and Triay & Triay, a firm of solicitors in Gibraltar, were met with a total lack of co-operation (Lord Doherty paragraph [8]).

• At a board meeting on 6 September 2007, “KPMG could not approve HC’s accounts … Santo Volpe had executed certain loans to SPV companies where non‑standard procedures had been followed which meant that inadequate security had been given for some loans … Gregory King stated that the loans to the SPVs had been repaid in full in May 2007” (Condescendence 5, page 13 of Levy & Mcrae reclaiming print).

• By email to a non‑executive director of HC (Mr Bourbon) dated 7 September 2007, Mr McGarry of KPMG referred to the previous day’s board meeting, and expressed concerns about the situation.He asked for further information, namely “all possible evidence regarding the movement of monies out of Heather Capital into these SPVs and onwards to whatever purpose the funds were applied – ie, sight of bank statements, payment/remittance instructions, certified extracts from solicitors clients’ money accounts etc”.(It should be noted that, contrary to HC’s averment in Condescendence 5 at page 13C‑D of Levy & Mcrae reclaiming print, the email did not restrict the inquiries requested to “explaining what information was required from Santo Volpe”:the request was much broader.)

• In October 2007 the non‑executive directors of HC met with the Isle of Man Financial Services Commission (FSC) to discuss “the issues” (Lord Doherty paragraph [8]).A director also disclosed the suspicious activity and Mr Volpe’s obstruction to the Isle of Man Financial Crime Unit (FCU), who said they would investigate (Condescendence 5 page 14 of LM reclaiming print).The auditors KPMG carried out an additional full scope audit.

• By letter dated 18 October 2007, FSC wrote to the directors of HC setting out further information which they required.

• By letter dated 26 November 2007 Mr King advised the HC board that “some sort of fraud had been deliberately introduced with invalid land registry details on a number of the loans”.He stated that he had applied pressure to Mr Volpe and Mr Cannon, whereupon there had been “full repayment of the loans with relevant interest” which meant that “investors were secure”.

• On 17 December 2007, KPMG signed the accounts and added a completion note using language such as “The risk of fraud increased to high as a result of the documentation issues surrounding the SPVs, where some form of fraud appeared to have been attempted”.In their audit report opinion, they stated “We have been unable to verify where funds advanced to the SPVs were invested.In addition, we were supplied with false documentation in relation to the SPVs which appears to have been a deliberate attempt to mislead us.Given these loans were repaid in the period, we consider that the effect of this is not so material and pervasive that we are unable to form an opinion on the financial statements [opting instead for express qualifications that loan and security documentation could not be validated] … There is uncertainty as to where the monies lent to the [SPVs] were then subsequently invested … Investigations continue to determine what party (or parties) were involved in and were accountable for these events, and whether any action should be taken against them …” (Lord Doherty paragraph [9]).

• By letter to HC dated 4 January 2008, KPMG gave serious warnings about their inability to validate loan and security documentation, and lack of evidence as to the purpose for which the money advanced to SPVs was applied.In their words:

“ … Our report is designed to … avoid weaknesses that could lead to material loss or misstatement.  However, it is your obligation to take the actions needed to remedy those weaknesses and should you fail to do so we shall not be held responsible if loss or misstatement occurs as a result … [Having explained the disappearance of the funds and the apparent repayments, on which legal advice had been received, KPMG warned] … these matters are extremely serious … an attempted fraud appears to have been perpetrated … We would recommend that the Board continue their investigation into this matter and formally document their decision as to whether or not to inform the criminal justice authorities …”

A full copy of a court opinion detailing these and other claims with regards to a further case against Burness Paull LLB  - which coincidently also collapsed earlier last year - can be viewed here: Court of Session allows proof against Levy & Mcrae and Burness Paull LLP in Heather Capital case as liquidators attempt to recover cash from collapsed £280m hedge fund.

FIRE SALE: AIB face sequestration probe as files reveal Trustee was paid £20K by vulture fund to sell home & firebombed farm five days after targeted attack on couple at centre of land case linked to top Scots judges, an ex-Sheriff, an asbestos dumping building company & law firm Levy and Mcrae

Richard Dennis, Kenneth Pattullo face probe. AN ONGOING probe of a case linked to Scotland’s top judge Lord Carloway – has revealed a Trustee acting in a sequestration of a couple who won a court action - relied on his appointment on the basis of a typo in a court document - to go on to strip the couple of all their assets.

And - files now reveal Kenneth Pattullo was paid £20,000 by offshore vulture fund Promontoria - to sell off a firebombed farm and home belonging to a couple who initially won the Court of Session case then lost out when their counsel – John Campbell QC deliberately removed most of their claim after Lord Woolman said Mr Nolan had a case against the building company – Advance Construction Scotland Ltd .

In documents now disclosed to journalists, Nicola Donnelly – a senior manager at Begbies Traynor in Glasgow – admitted in an email to the couple that Promontoria – a vulture fund which bought loans & mortgages from banks including the Clydesdale – paid Trustee Kenneth Pattullo £20,000 - to sell properties belonging to Melanie Collins, and Donal Nolan - which were once valued in the millions – for the sum of £655K.

Records from the very unusual sequestrations of both Ms Collins & Mr Nolan - show their properties were seized by Mr Pattullo of Begbies Traynor on behalf of Advance Construction (Scotland) Ltd – after the building company lost a Court of Session action raised by Mr Nolan in which Advance Construction admitted dumping toxic waste on land owned by the retired National Hunt jockey.

However, after Begbies Traynor had retained the properties on their books for four years – during which time the Clydesdale Bank sold their interest in the properties to Promontoria - the titles suddenly changed hands only a few days after PoliceScotland were called in to investigate a targeted firebombing of Mr Nolan’s farm – which saw four horses die after being torched with petrol by unknown persons.

The couple say Police Scotland believe the targeted arson attack is connected to events related to the court case and the ‘extremely motivated’ bankruptcy which then followed.

Records of land titles obtained from Registers of Scotland reveal Morningside Farm – the target of the firebombing – was sold by Kenneth Pattullo to an Andrew Kenneth Hill of Carluke, Lanarkshire on 22 May 2019 for a purchase price of £380,000 - some five days after the targeted arson attack.

Meanwhile the home of the couple – a house with land - in Newmains, Wishaw, was sold by Mr Pattullo to a “SIPS Homes Scotland Ltd” on 20 May 2019 with a purchase price listed as £255,000

Companies House reports that SIPS Homes Scotland Ltd was created on 4 March 2019 with a registered office at Crossway, Donibistle Industrial Estate, Dalgety Bay, Fife, United Kingdom, KY11 9JE – and has three directors – Mark William Dalziel, Caroline Ann Hynds and Patrick Leaonard Hynds.

A section of land at Branchal, Wishaw – belonging to the retired jockey was sold by Mr Pattullo to the same “SIPS Homes Scotland Ltd” for £20,000 on 4 June 2019.

Begbies Traynor were asked to confirm if Mr Pattullo was in charge of the properties as Trustee - during the events of the targeted arson attack, but they refused to comment.

Susan Reid of Harrogate based Appeal PR – who claim to handle all Public Relations for Begbies Traynor in Scotland stated: “Sorry to be unhelpful, but unfortunately Begbies Traynor is unable to give any information about personal insolvency cases. However, the information is a matter of public record, so you should be able to find it from official sources.”

The sequestrations of both Mr Nolan and his partner – Melanie Collins – after they had effectively won the Court of Session claim against Advance Construction (Scotland) Ltd – came about after John Campbell QC stripped out most of their financial claims for damage & legal expeses – after Court of Session judge Lord Woolman told the couple they had a case against the building company for loss of the use of the use of their property.

A full report on how John Campbell QC reduced his own client’s financial claim almost to zero and without any instruction or consultation - can be found here: CASHBACK QC: Legal regulator’s files reveal senior QC reduced claim without instructions, withheld key evidence & witnesses including Cabinet Secretary from Court of Session case

Commenting on Campbell’s move – the judge said he had never seen this happen in a case previously – and a probe of events has established John Campbell had not sought permission or consultation with his client to strip out the financial damages and legal expenses claims.

Mr Nolan and his partner Ms Collins were then targeted by Advance’s lawyers Levy & Mcrae – who then turned around Advance’s loss in court – and the building company’s admission of dumping toxic waste on Mr Nolan’s land – to go after the couple for hundreds of thousands of pounds in legal expenses.

Levy and Mcrae then petitioned the court for sequestration of Ms Collins on 30 March 2015 – and Mr James Robb (now at Brechin Tindall Oatts solicitors) sought sequestration of Ms Collins and the appointment of the Accountant in Bankruptcy as Trustee in her estate.

The interlocutor from Hamilton Sheriff court dated 30 March 2015 reads as follows:

The sheriff, having heard parties' solicitors, on the opposed motion of the Petitioner, having considered the foregoing petition, together with the productions, and being satisfied that the petition has been presented in accordance with the Bankruptcy (Scotland) Act 1985, and that: * proper citation has been made to the debtor * the requirements of the Bankruptcy (Scotland) Act 1985 relating to apparent insolvency have been fulfilled.

Sequestrates the estate now belonging or which shall hereafter belong to the debtor Ms Melanie Collins before the date of the debtor's discharge and Declares the same to belong to the debtor's creditors for the purposes of the said Act; Finds the respondent liable to the petitioner in the expenses as taxed, Allows an accountant thereof to be given in and Remits same, when lodged, to the auditor of court to tax and to report; and Appoints Accountant in Bankruptcy, 1 Pennyburn Road,Kilwinning KA136SA to be trustee; the whole estate of said Ms Melanie Collins at 07 January 2015 is vested in and now belongs to said trustee, for the benefit of the said debtors creditors

According to financial experts, the appointment of the AIB as trustee in a sequestration is a normal move – and leads to the AIB handing the case to one of their agents – which in this case – was given to auditors KPMG.

However, after KPMG took on the sequestration, and began their work – lawyers acting for Advance approached Sheriff T Millar of Hamilton Sheriff Court – and claimed there had been a typo (administrative error) in their original petition appointing the Accountant in Bankruptcy as Trustee for Ms Collins.

In a closed hearing at Hamilton Sheriff Court on 2 April 2015 - Levy and Mcrae asked Sheriff Millar to swap out the AIB & auditors KPMG for their own preferred Trustee – Kenneth Pattullo of Begbies Traynor.

The interlocutor for the hearing before Sheriff Millar reads as follows:

The Sheriff, having seen and considered the letter of 2nd April 2015 from Levy and McRae Solicitors and it having been noted that an administrative error has been made on the interlocutor of 30th March 2015 in that the Accountant in Bankruptcy was appointed as trustee in error; Allows amendment of said interlocutor by appointing Kenneth Pattulo of Begbies Traynor (CentralLLP), FinlayHouse,10-14 West Nile Street, Glasgow, G12PP as Trustee in the Sequestration of Melanie Collins in place of the Accountant in Bankruptcy

However – according to both financial and legal experts – there was no error whatsoever in the original application to appoint the Accountant in Bankruptcy in the sequestration of Mr Nolan’s partner – Ms Collins.

And – a legal expert has said the court did not actually have the power to amend an error in a petition, rather the court could only ammend an error if the Sheriff had erred in his original decision to appoint the Accountant in Bankruptcy – which is standard practice in sequestrations,

When asked for more information on what happened in this case, and why Levy and Mcrae were able to force s Sheriff to swap the Accountant in Bankruptcy as Trustee for their own choice of Trustee – Mr Pattullo - Hamilton Sheriff Court have consistently refused to provide substantive explanations to these events and a number of addition, unusual rulings related to the sequestration of Ms Collins.

Now, Ms Collins has been told she should approach the court to recall her sequestration, on the basis the court had no power to alter the original Trustee – the Accountant in Bankruptcy – to that of Levy and Mcrae’s preference – Mr Pattullo.

However, in what has now become a battle to secure legal representation to recall the sequestration - multiple law firms have initially worked on the case, confirmed the events at Hamilton Sheriff Court are in error and should be addressed – but later the same law firms have mysteriously withdrawn from acting for Ms Collins after receiving ‘briefings’ or ‘communications’ from those with a vested interest in the case – including Begbies Traynor - the Trustees appointed by Levy and Mcrae.

In the latest attempt to recall the sequestration, Ms Collins approached solicitor Alan Cox of law firm Barton and Hendry in Cumbernauld.

Notes of a meeting between Mr Cox and Ms Collins reveal the solicitor took on the work, and wrote to Begbies Traynor.

However, in an email – dated 15 August 2019 – from Nicola Donnelly – a senior insolvency manager at Begbies Traynor to solicitor Alan Cox of Barton and Hendry – Ms Donnelly told Alan Cox in no uncertain terms that no matter who his clients approached for help – including elected politicians - there would be no change in how events would unfold – which have since led to the sale of all the couple’s properties.

In the email to Alan Cox, Nicola Donnelly states: “I would comment that your clients have instructed previous solicitors [as you are aware] and made complaints to the AiB and their MSP previously as they dispute the validity of the sequestrations. The position obviously will remain the same irrespective of how many different organisations are contacted to act on their behalf.”

Nicola Donnelly also added in her email to Mr Cox: “Eviction actions and forced asset sales are steps taken by a trustee as a last resort. Unfortunately, your clients continued lack of cooperation resulted in the trustee having no other option other than to initiate eviction actions.”

However, an ongoing media investigation has now established the eviction actions referred to by Nicola Donnelly – were undertaken by Addleshaw Goddard - a law firm where Alexander Sutherland - the son of Scotland’s top judge – Lord Carloway was based – but Carloway – real name Colin Sutherland – concealed this conflict of interest in his evidence to the Public Petitions Committee during which he faced questions from Mr Nolan’s MSP – Alex Neil.

After solicitor Alan Cox was contacted by Begbies Traynor - like all other solicitors engaged by the couple to attempt a recall sequestration - Mr Cox later said he could no longer assist in the case.

It should be noted, after Ms Collins was sequestrated in April 2015 – her partner - Mr Nolan – was then targeted by Levy and Mcrae on behalf of Advance Construction (Scotland) Ltd in an action at Hamilton Sheriff Court on 1 September 2015.

In the action to sequestrate Mr Nolan – Levy and Mcrae hired Mr Gavin Walker QC – currently of Axiom Advocates – to attend Hamilton Sheriff Court with instructions to seek the appointment of Mr Pattullo to seize the assets of Mr Nolan – despite the fact he had won the Court of Session claim against Advance Construction for dumping toxic waste on his land.

The couple are now seeking new legal representatives to take on their request to recall the sequestration of Ms Collins, and the Accountant in Bankruptcy has been asked to launch an independent investigation of events in the sequestrations of Ms Collins and her partner, Mr Nolan.

The following questions on this case were put to the Accountant in Bankruptcy (AIB) and it’s boss – Richard Dennis:

Does the Accountant in Bankruptcy have any comment on these targeted incidents of a criminal nature on Ms Collins & Mr Nolan and their farm - which led to the death of four horses and the couple being placed in a state of alarm and fear for their life?

Does the Accountant in Bankruptcy have any comment on the transfer of the titles and sale of the Morningside Farm property, and the fact these titles changed hands to persons of interest - during or only after the targeted fire attack?

Does the Accountant in Bankruptcy have any comment on the sale of this land and the main home & land at Bonkle to SIPS Homes (Scotland) Ltd, and how this sale came about?

Does the Accountant in Bankruptcy have any comment on why Mr Pattullo and Begbies Traynor have not interacted with the couple and their legal agents on various and numerous occasions?

Does the Accountant in Bankruptcy have any comment on the transactions in relation to the securities held by the Clydesdale Bank - during the sequestration of Mr Nolan & Ms Collins, and when the security was transferred during the sequestration from Clydesdale to Promontoria?

Can you clarify what are the AIB & Mr Dennis' responsibilities and liabilities - regarding the actions of trustees, agents administering sequestrations, companies & individuals employed by, and acting on their behalf.

Cam you also clarify what are the AIB & Mr Dennis' responsibilities and liabilities regarding any investigation process into the activities of trustees acting in sequestrations.

Can the AIB confirm if Mr Kenneth Pattullo and Begbies Traynor were the trustee in the sequestration of Mr Donal Nolan, and also the sequestration of his partner Ms Melanie Collins - during the dates of 17/18 May 2019 - these dates correspond to targeted fire attacks (currently under investigation by Police Scotland) which were made on Mr Nolan's farm at Morningside, Wishaw.

Richard Dennis – the Accountant in Bankruptcy - has refused to issue any comment on the above questions put to his office.

CASE BROKE ALL JUDICIAL CONFLICT OF INTEREST RULES:

Nolan v Advance Construction Scotland Ltd [2014] CSOH 4 CA132/11 is the same case which exposed serious conflicts of interest in Scotland’s judiciary – notably where Lord Malcolm (Colin Campbell QC) failed to disclose on multiple occasions - the fact Lord Malcolm’s son – Ewen Campell - represented the defenders in the same court.

Since the sequestration of Mr Nolan and his partner took place after the conclusion of their court case - the couple have been the victim - of what some view as revenge for daring to take on a company with public contracts who illegally dumped hazardous waste on their land, where this same company was and is represented by law firms directly linked to senior figures in Scotland’s judiciary.

Mr Nolan and his partner have been evicted from their own home, lost their farm and land.

And - a deliberate, targeted fire attack on Mr Nolan's stables at a farm in 2019 which resulted in the death of several horses –  is still under investigation by Police Scotland.

Sources believe the deliberate arson attack on the couple’s Morningside Farm which featured in news reports of the tragic discovery of burned bodies of dead horses – is linked to the couple’s sequestration and setbacks in court.

The investigation into the Lord Malcolm case of serious failures to declare conflicts of interest, is reported in further detail here: CONFLICT OF INTEREST: Papers lodged at Holyrood judicial interests register probe reveal Court of Session judge heard case eight times - where his son acted as solicitor for the defenders.

It is also worth noting the Nolan v Advance (Scotland) Ltd case drew in a series of sheriffs and judges – from not easily explained hearings at Hamilton Sheriff Court involving Sheriff Millar, Peter Watson & Levy & Mcrae – and Lord Malcolm’s son – Ewen Campbell – to Court of Session judges including Lord Brodie, Lord Menzies, Lord Woolman, Lord Bracadale (and a concealed recusal) and Lord Hodge – who later prevented the case being appealed to the UK Supreme Court without declaring he had already ruled on the case while in Edinburgh on multiple occasions.

A recent development in the ongoing media probe of this case saw publication of a witness statement from Advocate Ewen Campbell – Lord Malcolm’s son –  which directly contradicts evidence given by  Lord Carloway - to the Public Petitions Committee and MSP Alex Neil in a hearing on 29 June 2017.

A further development saw a court-sourced witness statement of solicitor and ex-Sheriff Peter Black Watson to the Court of Session – which confirmed Watson employed the son of Lord Malcolm in the case to represent the client – Advance Construction Scotland Ltd – which ended up being heard by Lord Malcolm - who concealed his link to his son during multiple court hearings.

During the evidence session - Lord Carloway faced questions from Mr Neil on the Court of Session case - where judge & Privy Councillor Lord Malcolm (real name Colin Campbell QC) – heard a land contamination case - up to EIGHT TIMES while his own son represented the defenders - Advance Construction Scotland Ltd in the same court room.

In response to questions from the MSP, Lord Carloway (real name Colin Sutherland) furiously claimed that Lord Malcolm’s son DID NOT have any “active involvement with the case whatsoever.”

However – the witness statement dated May 2013 - signed by Ewen Campbell – covering the time Campbell worked for Glasgow law firm Levy & Mcrae – contains a written admission Mr Campbell confirming he did in-fact represented the construction company, alongside lawyer Peter Black Watson – who was at the time a Sheriff and partner at the same law firm.

A full report on the publication of evidence contradicting Lord Carloway’s testimony at the Scottish Parliament can be found here: DISHONESTY, LORD: Files reveal Lord Carloway misled Holyrood Committee on involvement of judges’ relative in Court of Session claim – witness statement exposes direct role of Ewen Campbell in £6M land case heard by his father - judge & privy councillor Lord Malcolm

Further material sourced from the Court of Session, including digital evidence in relation to the ongoing media probe of Nolan v Advance - will be published in upcoming articles.

Perth Law firm & Accountant in Bankruptcy lose bitter fight for disputed legal fees as MSP secures discharge for disabled client after FOUR YEAR ORDEAL

MSP Jayne Baxter secures relief for constituent in bitter fight over legal fees.THE CASE of a Perth client who has been through an horrific FOUR YEAR ordeal initiated by a Perth based law firm & Scotland’s Accountant in Bankruptcy (AIB) over fees claimed to be owed for a personal injury case, has sensationally collapsed after it was revealed this week the client has been officially discharged by the AIB from any alleged debts and that no funds were repaid to either the AIB or the law firm who claimed to be owed the money.

Just days ago, Mr William Gordon, of Perth, was notified by the office of Jayne Baxter MSP, he had been discharged by the AIB in late November 2012 from any alleged debts due to Perth based law firm Kippen Campbell.

The discharge, which frees Mr Gordon from any further claim by his former solicitors, comes after a long running battle over disputed legal fees Kippen Campbell claimed were due to them even though they had withdrawn from acting for their client and left him on the steps of the Court of Session to face a judge, alone, in his personal injury claim.

Notification of the discharge was only provided to Jayne Baxter, Mr Gordon’s MSP, after several requests from Mrs Baxter and her staff to the AIB for copies of the documents and an update on her constituent, Mr Gordon’s position.

Copies of papers received by the MSP and handed to Diary of Injustice appear to show the AIB and it’s agents who acted in the case, Glasgow based accountants Wylie & Bisset, failed to provide Mr Gordon with any notification of his discharge in November of last year. The delay of seven long months in informing Mr Gordon of his discharge, raises serious questions as to why the AIB felt they could keep Mr Gordon in a state of flux for some seven months after the discharge took effect.

It has also been revealed the AIB are refusing to supply Mr Gordon and his MSP with a copy of the actual discharge certificate, citing a rule over fees, despite the fact the entire case has already cost the taxpayer a significant amount of money. Representatives of Mr Gordon who have been helping him through this long ordeal have today told Diary of Injustice they will continue to pursue the AIB for a copy of the actual discharge certificate, given Mr Gordon’s entitlement to a copy and to help establish more details surrounding the AIB’s conduct in this case.

Given the shocking treatment of Mr Gordon in this case, Diary of Injustice feels there must be a full investigation into the circumstances surrounding the AIB's conduct towards Mr Gordon and the actions of its agents in the wake of claims no authentic court papers were ever served on Mr Gordon nor was he given the chance to challenge events, due to circumstances of poor health which have been verified by his own doctor to the court on each required occasion.

There are also serious questions over the activities of the AIB’s agents, who attempted to seize the rented house Mr Gordon lives in, and the house of another individual unrelated to Mr Gordon, with a view to scoop the proceeds of the sale of both properties in lieu of the less than three thousand pounds claimed to be owed to the law firm.

The AIB’s move to seize Mr Gordon’s home and a property belonging to someone else, was reported by Scottish Law Reporter and the Herald newspaper, here : Accountant in Bankruptcy agents try to seize wrong house in bankruptcy of disabled client ordered by Perth law firm over disputed legal fees

AIB threatened to seize two properties for a £2.7K debt to solicitors. In letters sent to Mr Gordon, AIB agents Wylie & Bisset demand a “required payment” of NINETY TWO THOUSAND & FIVE HUNDRED POUNDS, and went on to threaten “We require firm proposals for the realisation of the sum in question to your sequestrated estate as a matter of urgency. Should we not receive your proposals within 14 days of the date of this letter, then please be aware that we shall be forced to seek action for vacant possession of the property.”.The second property located in Rattray, Blairgowrie, and owned by a family unconnected to Mr Gordon was valued by AIB agents Wylie & Bisset, at £185,000. However, the debt allegedly owed to Kippen Campbell amounted to little more than £2,700.

Along with the freezing of Mr Gordon’s access to his state disability benefits for seven months – an act on its own which is reprehensible and not acceptable in terms of the law as it stands, nothing short of a full investigation into, and an accounting of the AIB’s activities in this case must take place and be published in the public interest.

How a law firm and bankruptcy regulations were used to hound a disabled client for dodgy fees :

Diary of Injustice initially reported on the long running case of Mr Gordon in December 2009, when it was revealed the then head of the Scottish Legal Complaints Commission Jane Irvine was to be cited as a witness at Perth Sheriff Court after it was revealed Kippen Campbell had tried to charge their former client a fee for dealing with complaints.

During October 2010, the case came back into the media spotlight with Kippen Campbell took their case to Perth Sheriff Court in an attempt to pursue Mr Gordon for the fees they claimed to be owed, reported here : Personal injury client dropped by Perth based solicitors Kippen Campbell ‘being hounded’ by court attempts to recover disputed fees

Later in October 2010 it was also revealed by Diary of Injustice that Sally McCartney, a partner at Kippen Campbell and the solicitor at the heart of the case against Mr Gordon had lobbied the Scottish Parliament against independent regulation of solicitors Scottish Parliament documents reveal Perth law firm in complaint fees case campaigned against Holyrood clean-up of regulation of lawyers

In July of 2012, Diary of Injustice featured a further article on the case, revealing Mr Gordon’s now two years of hell could have been avoided if the Scottish Legal Complaints Commission had used their powers on fee nullification in the course of considering Mr Gordon’s complaints against his then solicitors Kippen Campbell.

Material also presented to Diary of Injustice at the time and featured in the report, revealed the private firm of accountants acting on behalf of the Accountant in Bankruptcy, had also frozen access to his disability benefits, here : Solicitors regulator blamed for failure to use powers on fees as accountants seize Disability benefits to pay Perth law firm for collapsed court case

As further enquiries continued into Mr Gordon’s case, an investigation by the media of the Accountant in Bankruptcy’s conduct revealed over £8 million pounds of taxpayers money was being handed on a plate to private firms of accountants by the AIB, reported by Diary of Injustice here : £8 MILLION of YOUR MONEY spent on ‘BULLY BOY’ agents as papers to MSP reveal Accountant in Bankruptcy secretly seize benefits of disabled, trashing lives of Scots on the brink

Scottish Law Commission criticised as Draft Bankruptcy Act for Scotland fails to protect weakest victims of debt & insolvency from AIB’s multi million pound sequestration racket

Missed opportunity to protect vulnerable Scots from draconian Bankruptcy powers. A REPORT presented by the Scottish Law Commission (SLC) on the Consolidation of Bankruptcy Legislation in Scotland has been branded by critics as a missed opportunity to curb & control the multi million pound sequestration racket in Scotland which sees private firms of accountants gain millions of pounds in little talked about public contracts to go after people who have little or no ability to pay back their debts.

Rather than address the most pressing & critical problems involving sequestrations & bankruptcies in Scotland, which in several cases have seen agents acting for the Accountant in Bankruptcy freezing state disability payments to the long term sick & disabled, the Scottish Law Commission has chosen to fiddle with definitions & semantics of legislation in order to ‘consolidate’ legislation which is currently working as a license for private accountants to print money at the taxpayers expense.

In its official figures published on 24 April 2013, the Accountant in Bankruptcy reported that for the fourth quarter of the financial year 2012-13 there were 3,472 personal insolvencies in Scotland, generating millions of pounds of private contracts handed out to select private firms of accountants.

Diary of Injustice has previously reported on how lavish multi million pound contracts are handed out to accountancy firms by the AIB, here : £8 MILLION of YOUR MONEY spent on ‘BULLY BOY’ agents as papers to MSP reveal Accountant in Bankruptcy secretly seize benefits of disabled, trashing lives of Scots on the brink

Most of the law recommended for consolidation is already contained in the Bankruptcy (Scotland) Act 1985. The 1985 Act has been heavily amended in recent years, most notably by the Bankruptcy and Diligence etc. (Scotland) Act 2007. Many of the provisions of the 1985 Act are excessively long and the structure of the Act has become difficult to follow with the result that the Act has lost coherence.

The Report makes a number of recommendations for amendments to the Bankruptcy (Scotland) Act 1985. The changes relate to matters of technical detail and are intended to remove anomalies, treat like cases in the same way or to omit provisions that no longer serve any purpose.

Annexed to the Report are -

A Bankruptcy (Scotland) Bill to consolidate the legislation;
Tables of Destinations and Derivations relating to the provisions;
A draft Order which we envisage would be made under section 104 of the Scotland Act 1998
and which would give effect to certain provisions of the Bill in other parts of the UK.
The Commission has worked closely with the Accountant in Bankruptcy in producing the Report.

Commenting on the Scottish Law Commission's report, Lady Clark of Calton, the Chairman of the Commission said : "It is important that the law on bankruptcy should be stated in a clear and accessible form. The existing statutory provisions dealing with bankruptcy are cumbersome and difficult to use. We hope that consolidating the legislation will make it easier and more efficient for practitioners and others to provide advice to people faced with personal bankruptcy”.

Rosemary Winter-Scott, Chief Executive of Accountant in Bankruptcy who has previously refused to answer questions on why her organisation has frozen access to benefits payments to the disabled for up to seven months at a time, said : “We welcome the Scottish Law Commission’s Report on the Consolidation of Bankruptcy Legislation in Scotland. Bankruptcy legislation in Scotland has been heavily amended over the years and the consolidation will ensure that the legislation is more accessible for practitioners and those affected by it. A Bankruptcy Bill is due to be introduced in the Scottish Parliament this summer. We expect the Consolidation Bill to follow after that Bill has completed the parliamentary process. This will bring bankruptcy legislation in Scotland into the 21st century.”

However, a spokesperson for one of Scotland’s consumer organisations told Diary of Injustice she was dismayed the Scottish Law Commission had not taken the opportunity to look deeper into how the Accountant in Bankruptcy has effectively misused its powers to force debt ridden victims into complicated long term repayment deals which are clearly unaffordable and not required in terms of law.

She said : “The Scottish Law Commission is well aware of substantial problems with the application of bankruptcy legislation in Scotland and this would have been a good opportunity to suggest amendments to ensure the weakest in society are protected from actions undertaken by the AIB against persons who are in receipt of disability benefits, actions which are clearly unacceptable in a civilised society.”

More can be read on the Scottish Law Commission’s report on Bankruptcy legislation HERE

With the prospect of new legislation being put before the Scottish Parliament, anyone who has been sequestrated or made bankrupt in Scotland and who has experienced difficulties with the Accountant in Bankruptcy and their agents, are encouraged to write to their MSPs and make submissions to the Scottish Parliament.

If you have encountered problems with the Accountant in Bankruptcy or their agents, Diary of Injustice would also like to hear from you via scottishlawreporters@gmail.com

£8 MILLION of YOUR MONEY spent on ‘BULLY BOY’ agents as papers to MSP reveal Accountant in Bankruptcy secretly seize benefits of disabled, trashing lives of Scots on the brink

Plush offices of Kilwinning based Accountant in Bankruptcy, who target disabled benefits cash. AT THE END of a week when the Scottish Government announced there have been 4,063 personal insolvencies in the past year, it may well come as a surprise to learn that papers now in the hands of MSPs and an MP, reveal that Scotland's Accountant in Bankruptcy (AIB) is conveniently looking the other way while its highly paid, ‘bully boy’ agents routinely seize Scots benefits cash in attempts to force unnecessary payments out of even the long term sick and disabled victims of the current recession.

It can also be revealed the same ‘bully-boy’ firms of private accountants who go on to seize the bank accounts of sequestrated individuals, are being paid millions of pounds of public money by the AIB to do it, and when victims are forced to complain about their benefits being withheld, contrary to laws put in place to prevent this, the Accountant in Bankruptcy and their agents refuse to allow external investigations by banking & finance regulators.

Journalists from Diary of Injustice who have been looking into this huge bankruptcy scam on the public purse, recently made Freedom of Information requests to the Accountant in Bankruptcy, asking for details of expenditures of public money on private accountants acting as the AIB’s “agents” and the numbers of complaints made against each of the AIB’s agents.

In it’s response. the Accountant in Bankruptcy revealed that at least EIGHT MILLION POUNDS of taxpayers cash (£8,021,756.62) has already been spent on private accountants working for the already overstaffed multi million pound budgeted public body in charge of sequestrations. The AIB have also revealed a litany of complaints made against its agents but it refused to release any details of the actual complaints and confirm whether matters were in fact resolved.

The AIB ‘s FOI response, available to view online HERE, states :

I can confirm that Armstrong Watson is one of those Providers. Since the commencement of this contract in April 2009, until 31 March 2012, Armstrong Watson has been paid £1,051,627.12 for the administration of cases on behalf of The Accountant in Bankruptcy. To date they have been allocated 2062 cases. I can confirm that there have been 11 complaints made to AiB in respect of Armstrong Watson, from 1 April 2009 to date, 2 August 2012.

I can confirm that Hastings & Co are one of those Providers. Since the commencement of this contract in April 2009, until 31 March 2012, Hastings & Co have been paid £608,605.96 for the administration of cases on behalf of The Accountant in Bankruptcy. To date they have been allocated 1040 cases. I can confirm that there have been 8 complaints made to AiB in respect of Hastings & Co, from 1 April 2009 to date, 2 August 2012.

I can confirm that Invocas is one of those Providers. Since the commencement of this contract in April 2009, until 31 March 2012, Invocas has been paid £284,346.77 for the administration of cases on behalf of The Accountant in Bankruptcy. To date they have been allocated 875 cases. I can confirm that there have been 6 complaints made to AiB in respect of Invocas, from 1 April 2009 to date, 2 August 2012.

I can confirm that KPMG is one of those Providers. Since the commencement of this contract in April 2009, until 31 March 2012, KPMG has been paid £3,706,744.79 for the administration of cases on behalf of The Accountant in Bankruptcy. To date they have been allocated 6585 cases. I can confirm that there have been 28 complaints made to AiB in respect of KPMG, from 1 April 2009 to date, 2 August 2012.

I can confirm that Miller McIntyre & Gellatly (now mmg archbold) is one of those Providers. Since the commencement of this contract in April 2009, until 31 March 2012, MMG have been paid £303,745.48 for the administration of cases on behalf of The Accountant in Bankruptcy. To date they have been allocated 710 cases. I can confirm that there has been 1 complaint made to AiB in respect of MMG, from 1 April 2009 to date, 2 August 2012.

Since the commencement of this contract in April 2009, until 31 March 2012, Wylie & Bisset have been paid £2,066,686.50, for the administration of cases on behalf of The Accountant in Bankruptcy. To date they have been allocated 3703 cases. I can confirm that there have been 18 complaints made to AiB in respect of Wylie & Bisset, from 1 April 2009 to date, 27 July 2012.

After looking into cases brought to the attention of Diary of Injustice, it has now been confirmed several of the firms identified in the above FOI response have been subject to serious complaints relating to how sequestrations have been handled, including matters involving the freezing of bank accounts and access to state funds.

Papers relating to one such case now in the hands of Perth MSP John Park confirm that agents acting on behalf of the Accountant in Bankruptcy have blocked access to disability benefits payments made to individuals who have suffered sequestration under highly questionable circumstances, for up to SEVEN MONTHS at a time.

The case being handled by MSP Mr Park, involves a Mr William Gordon of Perth who’s plight has previously been reported by the Herald newspaper, online law news websites and Diary of Injustice, featuring the case here :

An investigation of Mr Gordon’s case on Scots law website Scottish Law Reporter identified a firm Glasgow accountants, Wylie & Bisset who have been acting for the Accountant in Bankruptcy against Mr Gordon.

The Herald newspaper & Scottish Law Reporter have previously reported that Wylie & Bisset, who have been paid a whopping TWO MILLION POUNDS of public money to act for the AIB in sequestration cases, had also attempted to seize Mr Gordon's home  (which he does not own) and the home of an unrelated family in another town in order to pay off questionable debts claimed by a Perth based law firm, Kippen Campbell.

Diary of Injustice has previously reported on Mr Gordon’s case, after Kippen Campbell decided to bankrupt Mr Gordon, their former client, over a fees dispute, even though documents produced to the Scottish Legal Complaints Commission revealed Kippen Campbell had left their client on the doorstep of the Court of Session without legal representation after a long battle to bring a personal injury claim.

It has shockingly turned out that since the last report on Mr Gordon’s case, where his accounts were unfrozen, the agents acting for the AIB along with Lloyds TSB, Mr Gordon's bank, froze his accounts again, and have since refused to offer any explanation for their conduct.

Earlier this week, Diary of Injustice was handed copies of papers now in the hands of John Park MSP, and the SNP’s Pete Wishart MP at Westminster, which show the AIB’s agents, Wylie & Bisset have even refused requests from the Financial Ombudsman to investigate complaints made about the case by Mr Gordon, a move which suggests private firms acting on behalf of the Accountant in Bankruptcy are effectively unregulated, and can do as they please to victims of the credit crunch, brought about by the antics of corrupt, greedy bankers & their colleagues.

Speaking to Diary of Injustice yesterday (Friday), an official with one of Scotland’s Consumer protection bodies condemned the treatment of Mr Gordon and others at the hands of the AIB.

She said : “It is a disgrace that firms of private accountants who are apparently being paid millions of pounds of public money by the AIB are freezing benefits payments made to the sick & disabled and those who can ill afford any further expenditure after being made bankrupt.”

She added that the matter was so serious it must be raised in discussions with a view to making amendments to the coming Bankruptcy Bill, proposed by the SNP to be brought before the Scottish Parliament at a later date.

After Mr Gordon’s plight became public, Diary of Injustice received numerous emails from individuals caught in similar circumstances where agents acting for the AIB have also blocked access to state benefits payments, in what appears to be a popular policy of holding the poorest in society to ransom, in an effort to extort unnecessary payments back to the AIB’s agents who are already raking in millions of pounds of taxpayers money.

No one from the Accountant in Bankruptcy has answered or explained why it has not acted over complaints about bully boy tactics by its own agents in cases where bank accounts and state benefits payments to victims of disabilities have been frozen for such long periods of time.

If you have encountered difficulties with the Accountant in Bankruptcy or their agents, please let us know via scottishlawreporters@gmail.com. Anyone in such a situation should also ask for help from their MSP, in the light of the planned new legislation on bankruptcies in the Scottish Parliament.

Accountant in Bankruptcy unfreezes benefits payments of client caught up in sequestration battle with Perth law firm Kippen Campbell

Accountant in Bankruptcy seized disability benefits to pay law firm’s disputed fees MEDIA REPORTING of a case in which a sequestrated client’s Disability Benefits payments were illegally seized for nearly FOUR MONTHS by the Accountant in Bankruptcy (AIB) over a wrangle involving debts which a Perth based law firm, Kippen Campbell claim are owed to them over a collapsed court case, appears to have helped the client, Mr William Gordon (also of Perth) finally gain access to money desperately needed for living expenses.

Mr Gordon apparently discovered his accounts had been unfrozen last weekend, but no one from the AIB has contacted him over the matter or offered explanations as to why they had seized his benefits payments.

Diary of Injustice reported last week that Mr Gordon was apparently sequestrated by his former law firm after a series of bitter, ‘one sided’ court actions held in Perth Sheriff Court, where agents acting for Kippen Campbell demanded Mr Gordon be sequestrated to pay fees they claimed were due to them for legal services provided for a medical damages claim being heard in the Court of Session.

Even though it transpired Mr Gordon was too ill to attend court for any of the hearings, and his doctor had written to the court informing them of his patient’s medical circumstances, it appears Sheriffs at Perth Sheriff Court ignored the doctor’s medial opinions and sided with the local law firm who were demanding fees for representing Mr Gordon in the now collapsed medical damages claim. More on the story can be found here : Personal injury client dropped by Perth based solicitors Kippen Campbell ‘being hounded’ by court attempts to recover disputed fees

Earlier last week, the Herald newspaper & Scottish Law Reporter reported that attempts had been made to seize Mr Gordon’s home by Glasgow based accountants Wylie & Bisset who are acting on behalf of the Accountant in Bankruptcy. Wylie & Bisset were apparently convinced Mr Gordon owned his property. Apparently not content with seizing Mr Gordon’s home, the agents acting for the AIB attempted to seize another property owned by an unconnected family who live in Rattray, Blairgowrie, whose surname is also Gordon.

Jane Irvine, SLCC Chair : £300 a day for some, benefits seized to pay lawyers for others as regulator accused of failure to clip disputed fees. It is clear from persistent failures & a reluctance on the part of the Scottish Legal Complaints Commission (SLCC) to use their powers to abate or nullify disputed legal fees, that had the SLCC chose to exercise its powers in Mr Gordon’s case, he would not have been facing the wrath of courts, the Accountant in Bankruptcy & attempts to throw him onto the street over fees a law firm are claiming for walking away from his case. Diary of Injustice tackled these issues in last week’s report here : Solicitors regulator blamed for failure to use powers on fees as accountants seize Disability benefits to pay Perth law firm for collapsed court case,

In the article, it was also pointed out by a senior official from one of Scotland’s Consumer organisations that it was against the law to seize state benefits under section 187 of the Social Security Administration Act 1992 which clearly states “On the bankruptcy of a beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.”

The official went onto tell Diary of Injustice that her organisation had received numerous reports of law firms threatening clients with bankruptcy if they did not pay what appear to be dubious demands for fees. In other cases, law firms have simply gone ahead and made their clients bankrupt without even giving them a chance to question the legitimacy of the fees claimed to be owed.

The Accountant in Bankruptcy was asked to explain why Mr Gordon’s bank accounts & benefits payments had now been unfrozen after the media coverage. The AIB refused to issue any comment.

It has also been revealed the Financial Ombudsman is investigating why Mr Gordon’s bank accounts were seized and why benefits payments were also frozen by the AIB. While the Financial Ombudsman has declined to comment on the case, documents provided to them appear to raise serious questions over the validity of court documents coming out of Perth Sheriff Court which were used to ‘sequestrate’ Mr Gordon and put him through months of torture.

Since last week’s report, a number of individuals have contacted Diary of Injustice with regard to problems with the Accountant in Bankruptcy, and their agents apparently seizing benefits payments on multiple occasions. Coincidentally or not, some of these cases also relate to dubious fee demands by law firms who have left their clients with ruined legal cases.

Indeed, the trend of law firms using threats of bankruptcy against clients appears not to have gone unnoticed by the Scottish Government, reported in last week’s article where a senior source in the Government acknowledged there was a growing problem with law firms threatening clients over legal fees. He went on to say he believed law firms were using their influence in local courts to easily obtain bankruptcy orders against clients who have little or no chance of obtaining legal representation to challenge the law firms demands.

Diary of Injustice would like to hear from any reader who has endured difficulties with the Accountant in Bankruptcy and law firms demanding fees which cannot be substantiated. Please contact us with your information via : scottishlawreporters@gmail.com

Solicitors regulator blamed for failure to use powers on fees as accountants seize Disability benefits to pay Perth law firm for collapsed court case

Jane Irvine, SLCC Chair : £300 a day for some, benefits seized to pay lawyers for others as regulator accused of failure to clip disputed fees. PERSISTENT FAILURES at the Scottish Legal Complaints Commission (SLCC) including A RELUCTANCE to use key powers which enable the ‘independent’ regulator of Scottish lawyers to reduce or even nullify fees of solicitors who ruin their clients legal interests are being blamed for the predicament of a Mr William Gordon of Perth, who has now been made bankrupt by Perth based law firm Kippen Campbell, over demands he must pay fees for a case which collapsed because his lawyers withdrew from acting for him.

Mr Gordon’s plight comes as a result of a series of bitter, ‘one sided’ court actions held in Perth Sheriff Court, where agents acting for Kippen Campbell demanded Mr Gordon be sequestrated to pay fees they claimed were due to them for legal services provided for a medical damages claim being heard in the Court of Session. However, documents obtained by Diary of Injustice in connection with complaints made to regulators show the Perth law firm walked away from Mr Gordon’s case after he made complaints about their service & conduct to the Scottish Legal Complaints Commission, who typically, backed the law firm despite considerable allegations of service failures provided by Mr Gordon to the SLCC.

Diary of Injustice has previously reported on Mr Gordon’s case, here : Personal injury client dropped by Perth based solicitors Kippen Campbell ‘being hounded’ by court attempts to recover disputed fees

Earlier this week, it was reported by the media that Glasgow based accountants Wylie & Bisset, who are now pursuing Mr Gordon, attempted to seize his home (even though he does not own it) and the home of another family to pay back the Perth law firm for debts the law firm claims were incurred on Mr Gordon’s damages claim in the Court of Session, now ruined because he is unable to obtain any further legal representation.

Scottish Law Reporter quoted an article from the Herald newspaper, and further reported HERE : Glasgow based accountants Wylie & Bisset who are acting on behalf of the Accountant in Bankruptcy, sent demands to Kippen Campbell’s former client Mr Gordon who lives in Perth, threatening seizure & sale of his property, which he does not own, and the seizure & sale of another property owned by an unconnected family who live in Rattray, Blairgowrie, whose surname is also Gordon.

Threatening letters – Pay up for lawyers fees or we make you homeless say AIB’s agents. In letters sent to Mr Gordon, Wylie & Bisset demand a “required payment” of NINETY TWO THOUSAND & FIVE HUNDRED POUNDS, and goes on to threaten “We require firm proposals for the realisation of the sum in question to your sequestrated estate as a matter of urgency. Should we not receive your proposals within 14 days of the date of this letter, then please be aware that we shall be forced to seek action for vacant possession of the property.”.

The property which Wylie & Bisset were attempting to seize and had valued, at £185,000, was located in Rattray, Blairgowrie, and owned by a family unconnected to Mr Gordon. Yet the debt allegedly owed to the Perth based law firm amounted to little more than £2,700, which now appears to have increased to some £6,600 taking into account several hearings at Perth Sheriff Court which have artificially inflated the original demand for the disputed legal fees. Another demand sent to Mr Gordon from Wylie & Bisset, just a few days after the earlier threat, stated : “Please note that should suitable proposals not be received in writing, within 7 days, then we will have no alternative but to instruct a solicitor to raise proceedings in court for the forced sale of your property.”

Accountant in Bankruptcy, Scotland’s insolvency service with added errors. The Accountant in Bankruptcy was asked by Diary of Injustice to explain why their agents, Wylie & Bisset attempted to seize Mr Gordon’s rented property and that of another family. However, a spokesperson for the AIB explained away the attempted property grab as “errors”, telling Diary of Injustice yesterday : “As previously advised, Wylie & Bisset are one of AiB’s Insolvency Service providers and are required to administer cases in accordance with our processes. The administration of sequestrations is a complex task where a range of information is obtained from various sources.  During this process, it is possible for errors to occur, though the Accountant in Bankruptcy is satisfied that our providers give a consistently high standard of service when acting on our behalf.  Where errors are discovered, our providers are required to review their processes and make necessary changes to ensure that similar errors are not repeated.  In cases where individuals have been negatively affected by an administrative error, our providers will attempt to rectify the issue as soon as possible and where appropriate, will write to apologise for any inconvenience caused."

Further enquiries by Diary of Injustice have now established Wylie & Bisset, acting on behalf of the AIB have also frozen Mr Gordon’s Lloyds TSB bank account and seized his disability benefits payments, leaving him without any cash to live on whatsoever. Documents & copies of communications between the bank & Mr Gordon appear to show the bank simply froze Mr Gordon’s account on a telephone call ‘say so’ from Wylie & Bisset.

This information was put to the Accountant in Bankruptcy, who attempted to explain away the seizure of Mr Gordon’s benefits by claiming they had no idea what the source of payments into bank accounts were.

A spokesperson for the AIB claimed : “Where a trustee discovers that the debtor has a bank account, they may contact the bank to have the account frozen.  This action may be appropriate to prevent the debtor from inappropriately withdrawing funds after the award of sequestration. Where an account has been frozen, it is the responsibility of the debtor to contact the trustee to make representations around the money held in the account. This is particularly important where the debtor is reliant on state benefits that are paid directly into a bank account, as the trustee is unlikely to be aware of the origin of the money held in the account. This scenario can be avoided if the debtor co-operates fully with the trustee and provides information on their income and savings."

However, a senior official from one of Scotland’s Consumer organisations speaking to Diary of Injustice this morning rubbished the AIB’s claims of ignorance, and pointed out it was against the law to seize state benefits under section 187 of the Social Security Administration Act 1992 which clearly states “On the bankruptcy of a beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.”

She described the AIB’s actions as : “An attempt to starve out Mr Gordon to pay off his lawyers.”

The official went onto inform Diary of Injustice that her organisation has received numerous reports of law firms threatening clients with bankruptcy if they did not pay what appear to be dubious demands for fees. In other cases, law firms have simply gone ahead and made their clients bankrupt without even giving them a chance to question the legitimacy of the fees claimed to be owed.

Speaking to Diary of Injustice late last night, a senior source in the Scottish Government acknowledged there is a growing problem with law firms threatening clients over legal fees, an issue which has also been brought to the attention of some msps.

He went on to say he believed law firms were using their influence in local courts to easily obtain bankruptcy orders against clients who have little or no chance of obtaining legal representation to challenge the law firms demands.

Meanwhile Mr Gordon is running short of cash while the Accountant in Bankruptcy and their agents run up large charges to the taxpayer in the course of pursuing a client who has no access to justice to challenge what has been done to him, in the name of paying a firm of lawyers based in Perth. Mr Gordon is without legal representation and his doctor has told Perth Sheriff Court on numerous occasions his patient is too unwell to attend court hearings.

The unavoidable conclusion is Mr Gordon’s predicament could easily have been avoided if the Scottish Legal Complaints Commission had listened to him during the course of his complaint, and at the very least, reduced or nullified the fees of a law firm who walked away from their client when he discovered his case was not being pursued as he had instructed.

Diary of Injustice has previously reported how Ms Sally McCartney, the partner at Perth based Kippen Cambpell who dealt with Mr Gordon’s case, wrote letters to the Scottish Parliament CAMPAIGNING AGAINST independent regulation of the legal profession, also ARGUING AGAINST plans to increase compensation to clients of lawyers who had provided poor services, reported here : Scottish Parliament documents reveal Perth law firm in complaint fees case campaigned against Holyrood clean-up of regulation of lawyers