Ex-Rangers administrators David Whitehouse and Paul Clark in £21m settlement

[Uilleam 5,409]

A piece from today's Times, below.

 

At face value, it seems that Whitehouse wants a full investigation into the circumstances of his arrest and prosecution. He wants to be able to give evidence to any such inquiry, fully, 'without fear or favour', and without threat of prosecution. (All of which makes a change in Nikla Ceausescu's Scotland.)

This could be seen as a move to prevent any Inquiry shutting out vital evidence, on legal technicality. Of course, it assumes that there will such a probe. 

Speaking from the Lisbon Lions' stand, Gerry Moynihan, QC, attempted to block this by arguing that the civil case (which the Lord Advocate conceded, in full) was settled on the basis that Messrs Whitehouse and Clark had accepted that there was 'no criminality' in the malicious prosecution. Even to a layperson, this does not seem to hold water: an Independent Inquiry might well find that there was criminal intent, or criminal negligence, the agreement between the LA and Whitehouse/Clark being one based on instrumentality, to expedite an apology and a financial settlement. 

 

But, hey, let's not hold our breaths. 

 

Ex-administrator David Whitehouse wants to share Rangers case files

James Mulholland

Friday February 05 2021, 12.01am, The Times

 

https://www.thetimes.co.uk/article/ex-administrator-david-whitehouse-wants-to-share-rangers-case-files-5zmlq2vht

 

A former administrator who sued prosecutors over a “malicious” Rangers fraud investigation has urged judges to let him pass key documents on to any future investigation.

Lawyers acting for David Whitehouse, the insolvency expert who was arrested after the deal to buy Rangers out of administration, said there was “every possibility” of a public inquiry after his multimillion-pound civil claim against the Crown and Police Scotland.

Whitehouse, one of several executives targeted in a fraud investigation after the Rangers deal nearly ten years ago, has previously described his treatment as “utterly scandalous”.

The Court of Session was told yesterday that Whitehouse needed a judge’s permission to pass on information he had gleaned from the civil case to any future investigation.

Last year Whitehouse and Paul Clark, his colleague, began a £20.8 million compensation claim against the police and prosecutors over their arrests in an “unlawful” criminal investigation at the Glasgow club. They settled the action for an undisclosed sum. Lawyers acting for the Crown previously admitted that the men were the subject of a “malicious” prosecution.

 

Roddy Dunlop, QC, for Whitehouse, who appeared in court alongside Gerry Moynihan, QC, for the Crown, said that his client believed he could help highlight shortcomings in the prosecution.

He told the judge that many commentators had said it was “unimaginable in modern-day Scotland that we could have a prosecution that was both without probable cause and malicious and yet this is exactly what we have here. Mr Whitehouse frankly wants to know why that happened.”

He added: “If there is an inquiry, Mr Whitehouse wants to participate fully in that. If there’s not, in any event Mr Whitehouse wants the ability to bring his concerns to the appropriate authorities by way of complaint and demand for investigation into how on earth this happened and who is responsible for it.

“In order that he may do that he wants to be able to use the documents he has had sight of and what he doesn’t want to do is find himself in contempt of court in so doing.”

 

Whitehouse and Clark’s actions have stemmed from their alleged treatment by the police and prosecution authorities. The men were appointed administrators of Rangers in February 2012. The club was liquidated in October 2012 and they left their positions.

Police then arrested Whitehouse and charged him with offences relating to the takeover of Rangers in 2011 by Craig Whyte, a businessman. The charges were later dropped.

 

Yesterday Moynihan told the court that the lord advocate was committed to properly investigating any claims of wrongdoing but that Whitehouse’s legal action had been concluded on the basis that he accepted there had been no criminality on the part of prosecutors.

Moynihan added: “I had understood from [Dunlop] that there was to be no discussion today of any of the merits of this and I’m somewhat disappointed that the dean of faculty [Dunlop] has seen fit to repeat the coverage in the media and to refer to that.”

Moynihan said that the information given to Whitehouse came from witness statements and was provided to him on the basis of the civil action. Moynihan said he needed time to speak to the people who gave the statements to see if they objected to Whitehouse’s request to pass the information on.

 

Lord Tyre granted Moynihan 28 days to formulate answers to the documents lodged by Whitehouse and ordered the lord advocate to pay Whitehouse’s legal costs dating from August last year.

 

[Uilleam 5,409]

How many rings does this circus have?

Way more than the Olympian flag, as far as I can see.

 

Sir David Murray's 'legacy': a dripping roast for spivs, chisellers, barrow boys, corner boys, businessmen, accountants, and lawyers. So many have attended the feast, some more than once,  that it is difficult to establish who has had, or will have had, by the end of it (should we live so long), the juiciest slices, and the most gravy. 

 

From today's Times:

Rangers liquidators seek £57m from administrators

James Mulholland

Saturday February 06 2021, 12.01am, The Times

 

https://www.thetimes.co.uk/article/rangers-liquidators-seek-57m-from-administrators-n33trqpgq

 

The liquidators of Rangers FC are seeking £57 million from the club’s former administrators who have been accused of failing to properly manage the ailing club’s finances.

Lawyers for the financial firm BDO have begun legal action against David Whitehouse and Paul Clark, claiming the pair could have raised more money for creditors after the company which owned the Ibrox club was liquidated.

Whitehouse and Clark deny any wrongdoing and are contesting the claim.

 

Kenny McBrearty, QC, for BDO, also told Lord Tyre that he did not find an eight-week hearing using a video conferencing “an appetising prospect”.

McBrearty told the judge in an online hearing yesterday that he would prefer the case to be heard in Parliament House, the Edinburgh home of Scotland’s highest civil court.

He said that he would rather not cross-examine significant witnesses “who are in the comfort of their own slippers who can nip off to make themselves a cup of tea during the break”.

 

Whitehouse and Clark were appointed by the Court of Session after HMRC took Rangers to court for £18 million of unpaid tax in February 2012. The men went on to sell the business and assets to Charles Green’s consortium for £5.5 million before BDO was appointed to liquidate the old company.

The three men were later among seven indicted over fraud allegations relating to Rangers; the case against them was dropped in June 2016.

Whitehouse and Clark raised a multimillion-pound action against the police and prosecutors last year. Prosecutors admitted much of the case against them was “malicious” and conducted “without probable cause”. The pair recently received a settlement.

 

BDO launched the present action against the two men in 2017. It issued a statement confirming that it was seeking a £28.9 million payment from the administrators. It added: “During the course of the liquidation questions have arisen regarding the strategy previously adopted by the former administrators, which have not, to date, been adequately answered. In seeking clarity, the joint liquidators have been left with no other option but to pursue the matter via the Scottish court.”

In a 2017 statement Whitehouse said he was surprised by the legal move, adding: “In essence, BDO is now alleging that as the former administrators we should have achieved a better return for creditors by selling the clubs assets on a piecemeal basis, including Ibrox and its playing squad.

“This is a strategy with which we fundamentally disagree.”

 

In a procedural hearing yesterday Lord Tyre told McBrearty that he understood his position and that there remained some possibility that the action could be heard in a courtroom.

Lord Tyre arranged for a further procedural hearing on March 30. The main hearing in the case is expected to start in May.

[Scott7 5,145]

I hope BDO know what they’re doing. They must be confident they are not wasting money on lawyers which would otherwise have come to the creditors.

[the gunslinger 3,366]

anything to keep the gravy train rolling. 

[RANGERRAB 3,254]

Was only a matter of time before BDO went after people 

[Bill 13,717]

This entire affair is like Scotland in miniature - a hog wallow of corruption, patronage and collusion. When a Lord Advocate admits his justice system is maliciously prosecuting people, it's clear that legal process in Scotland can no longer be trusted. When a Scottish Government doesn't instigate an independent enquiry into abuses by its justice system, it implicates Govt Ministers in the corruption of justice. Then you have a First Minister who spends months squirming away from an enquiry into her own possible corruption. Effectively, Scotland is tantamount to a failed state, where the organs of state are actively flouting the law and colluding to maintain power by corruption. They've done this to our country in a few short years and they won't ever stop. 

[Uilleam 5,409]

The Crown Office has confirmed settlements with Clarke and Whitehouse: £10.5million. Each.

There was, I seem to recall, a prev ous out of court settlement with Poileas Alba, for wrongful arrests, and incarcerations.

 

There are other cases pending. 

 

There should be a full Public Enquiry pending

 

£24m bill for ex-Rangers administrators' legal claim

 

https://www.bbc.co.uk/news/uk-scotland-55983492

 

The taxpayer will shell out more than £24m to settle a claim by two men wrongfully arrested during a fraud probe relating to the sale of Rangers.

Administrators David Whitehouse and Paul Clark settled out of court with the Crown Office in December.

The Crown Office has now revealed both men were awarded £10.5m damages, while legal costs will be at least £3m.

Scotland's most senior law officer has said there was no criminal misconduct in the failed fraud probe.

The Lord Advocate James Wolffe will make a statement on the case to Holyrood next week where he is expected to offer a public apology to both men.

Mr Whitehouse and Mr Clark were appointed administrators when the company that ran the Glasgow club went into administration in 2012.

The pair were arrested in 2014 but the Crown has since said the arrests were "malicious".

Both men launched a £20m compensation claim over their arrests and the matter was resolved out of court.

 

In a letter to Holyrood's justice committee, Mr Wolffe said Mr Whitehouse and Mr Clark received £10.5m in damages each.

He explained: "Each of these pursuers was a very high-earning individual, and the settlement figure, in each case, reflected the actual loss which the pursuer was able to demonstrate had been caused to him by the wrongful prosecutions."

In addition, £3.08m has been paid out by the Crown Office to cover the former administrators' legal expenses to date but the final liability for these costs has not been calculated.

'Operational effectiveness'

There are other civil cases pending against the Lord Advocate arising from the same failed prosecution but these have not been concluded.

Mr Wolffe added that "arrangements have been made so that the settlement of these claims will not affect the operational effectiveness" of the Crown Office.

Last week, the Court of Session heard how Mr Whitehouse wants to pass on details from the civil case to any future investigations, such as a public inquiry, into the saga.

Roddy Dunlop QC, acting for Mr Whitehouse, said the businessman wanted answers about why he was arrested, given that the Crown has since said the arrests were malicious.

But the Crown Office said its investigations had "disclosed no criminal conduct" to date.

 

Edited February 8, 2021 by Uilleam

[der Berliner 3,239]

Wonder what, in theory, would happen to OldCo if BDO actually get anywhere close to the amount they are looking for above. Would that settle most of OldCo`s debts, despite the BDO fees?

[the gunslinger 3,366]

13 minutes ago, der Berliner said:

Wonder what, in theory, would happen to OldCo if BDO actually get anywhere close to the amount they are looking for above. Would that settle most of OldCo`s debts, despite the BDO fees?

no where near and BDO will just swallow it up. 

[Bill 13,717]

1 hour ago, Uilleam said:

But the Crown Office said its investigations had "disclosed no criminal conduct" to date.

Sturgeon's Scotland in a nutshell. How can you possibly have a malicious prosecution without a criminal offence being committed.