FRAUD PROBE MP: THE STENCH GROWS

Furious prosecutors were kept in dark about SNP candidate’s links to shamed lawyer until AFTER General Election in May

PROSECUTORS were kept in the dark about MP Michelle Thomson’s property dealings until after she was elected in an SNP landslide, it was revealed last night. A senior Law Society of Scotland executive was aware of her links to a struck-off solicitor – but failed to mention them to Crown Office officials days before the General Election.

Yesterday, the society’s chief executive Lorna Jack was left struggling to explain the body’s role in the shambolic process that led to a property fraud probe being launched by police.

She admitted its director of financial compliance Ian Messer, who met Crown officials, had the report into the solicitor which named Mrs Thomson as the client.

Solicitor Christopher Hales was struck off after acting for Mrs Thomson’s company M&F Property Solutions in a series of deals which raised questions over possible mortgage fraud.

Mr Messer, who refused to answer questions from the Scottish Daily Mail last night, may not have been aware who Mrs Thomson was, Mrs Jack claimed.

But she was one of the most high-profile figures in the pro-independence movement last year and was a candidate in Edinburgh, where he lives.

The ongoing farce is a huge embarrassment for Nicola Sturgeon, who faced an

unprecedented grilling at First Minister’s Questions yesterday.

The Law Society first alerted the Crown Office about Hales in December – and the Mail understands it asked for a full report.

But at a second routine meeting on April 28 – the week before the election – it was told a final report was still not available.

Voters went to the polls on May 7 unaware of the controversy and Mrs Thomson was elected in Edinburgh West. It took until July before the report, which included mention of Mrs Thomson’s deals, finally landed on the Crown Office’s desk.

Prosecutors needed only six days to order a police investigation.

When the news of that broke this week, Mrs Thomson quit the party whip at Westminster, triggering her suspension from the SNP.

While the political fall-out continued to dominate proceedings at Holyrood yesterday, the role of the establishment in the process is under growing scrutiny.

A Scottish Labour source said: ‘This situation has the appearance of a legal farce.’

It also emerged yesterday that the secretary of the Law Society subcommittee that received the final report on Hales in July this year, Sheila Kirkwood, was a leading member of the pro-independence body Lawyers for Yes.

Mrs Jack strongly denied any wrongdoing by Mrs Kirkwood yesterday, or a conflict of interest, but admitted that this was based on ‘the word’ of her colleagues. She said she would now consider whether the body needed to look ‘more deeply’ into the matter.

At yesterday’s press conference, Mrs Jack, who earns £183,000 a year, also claimed she did not know of Mrs Thomson’s involvement in the Hales case until reading it in the media, despite insisting the Hales inquiry was so important it was the ‘first of this nature’, triggering questions about her future as chief executive.

‘I did not read the full report,’ she admitted, adding: ‘I don’t think the public’s confidence is depreciated in the Law Society. I think the media are trying to pursue a line of political compromise that is absolutely, categorically not the case.’

Last night, a Crown Office spokesman effectively pinned the blame on the Law Society, insisting: ‘The Crown was not told of the identity of Mr Hales’ clients before we received the official report into Mr Hale’s conduct in July and we ordered a police investigation into the matter six days later.’

Mrs Jack revealed i t was Mr Messer who first informally told the Crown Office about the Hales case in December 2014 – six months after the Scottish Solicitors’ Discipline Tribunal (SSDT) ruling was published. The public document was ‘redacted’ so it did not mention Hales’ client, Mrs Thomson.

But Mrs Jack said: ‘[Mr Messer] would know the name of clients. I could not say whether he would know who she was.

‘He would have seen names of clients when he was dealing with the case. He was making a report about Christopher Hales. Our concern is about former solicitors involved in potentially suspicious activity.’

She then confirmed this for a third time, telling journalists: ‘He would have known the clients’ names. He’s in charge of the team that inspects firms.’

She later said: ‘What we flagged to the Crown Office is the solicitor in question… in December 2014 and April 2015.’

She was originally unable to say if Mr Messer mentioned Mrs Thomson’s name in the April meeting, but then confirmed: ‘He didn’t.’

As the confusion continued, she said: ‘He would have known the clients’ names from the process that he’d gone through, sorry, could have known the clients’ names. Yeah, could have known the clients’ names. He would have had that [SSDT] report.’

Mr Messer told the Mail: ‘We’ve all been advised that calls should come t hrough t he communications department. That’s the corporate line.’

The SSDT ruled that the ‘central role of Michelle Thomson and M&F Property Solutions in a number of these transactions should have set alarm bells ringing’.

On Tuesday, Police Scotland revealed it had been instructed to investigate ‘alleged irregularities relating to property deals in the year 2010-11’ raised in the SSDT hearing against Hales.

The solicitor worked for Mrs Thomson, her husband Peter or M&F Property Solutions on 13 transactions before he was suspended in 2011 following routine checks by the Law Society.

After yesterday’s press conference, Mrs Jack issued a further statement which read: ‘The Law Society’s number one regulatory priority is to protect the public from any wrongdoing 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 Hales’ practising certificate in September 2011. Under the Proceeds of Crime Act there is a duty on us as a regulator to report suspicious activi ty quickly to the appropriate authorities. Such reports and timings or information about the report are confidential by law.’

She added: ‘I want to stress that Law Society employee Sheila Kirkwood has not acted unprofessionally or inappropriately at any time. Shelia 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. Shelia’s role as secretary to the committee is to write the minute.’

Mrs Thomson’s solicitor Aamer Anwar said: ‘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 the frontline of 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.’

‘I did not read the full report’