Crown drops case against Heather Capital quartet

Lawyer Gregory King, 49, and three other men were reported to the Crown Office and Procurator Fiscal Service by detectives investigating his hedge fund Heather Capital, headquartered in the Isle of Man.

Mr King, a lawyer, launched Heather Capital in 2005, attracting a number of investors and loaning money for property deals.

But after its collapse in 2010, liquidator Paul Duffy claimed that £90m was unaccounted for and a police fraud probe saw four men reported to prosecutors in April 2013.

Now, after five years, the Crown has dropped the case.

A Crown Office spokesman told The Herald: “The Crown reserves the right to raise proceedings should further evidence become available.”

Mr Duffy, of Ernst & Young, has dropped the £7.3m claim against Burness Paull, which was linked to Heather Capital.

Lord Bannatyne in the Court of Session yesterday confirmed the action against the law firm had ended.