A London lawyer has been jailed for defrauding investors into a major Perthshire hotel development out of nearly £13 million.
US developers were forced to mount a private prosecution against their ex-solicitor Stephen Jones over missing funds connected to the ongoing renovation of the historic Taymouth Castle.
Property firm Discovery Land Company is behind ambitious plans to breathe new life into the neo-Gothic castle near Kenmore, which was famously visited by Queen Victoria and Prince Albert in 1842.
The firm transferred millions to Jones’ firm Jirehouse to buy the property.
Instead, 63-year-old Jones stole the money.
He appeared at Southwark Crown Court and admitted two counts of fraud related to the misappropriation of $14m and $2m.
Jones – who had previously worked for creditors of Dundee property developer Scot Young – was jailed for 12 years, which is believed to be a new record for a lawyer guilty of dishonesty.
Judge Martin Griffiths criticised the Metropolitan Police for failing to investigate the solicitor, and said it was a “great shame” UK authorities required an American firm to undertake Proceeds of Crime action in this country.
Lawyer ‘nearly got away with it’
Jones was previously jailed for 14 months in 2019 for four counts of contempt of court after he refused to disclose the names of two recipients of the money.
He also broke an undertaking to return the stolen money and explain what had happened to it.
The court heard when the purchase of the castle was due to take place, the funds were not in the company’s account.
At the time, the Met and the Crown Prosecution Service were instructed to investigate Jones.
But after 18 months of inaction, Discovery Land Company (DLC) decided to prosecute privately, reported Mailonline.
Judge Griffiths said: “I am amazed that no one has seen fit to take this over.
“A solicitor taking client funds and dissipating them – I can’t see a more obvious case for the authorities in this country doing its job.”
The judge told Jones: “There was every chance you would get away with it until the private prosecutors stepped in.”
He described Jones’ actions as “madness” and said although he knew it was clients’ funds, he “spirited them away”.
“That was rank dishonesty carried out by a person who ought to know it was dishonest,” the judge said.
Victim statements
Prosecuting barrister Steven Kay KC said the firm had spent about £4 million in legal fees, trying to recover the stolen funds.
The court heard victim statements from represents of DLC in the US and the UK.
They said their mental and physical health had suffered as a result of the frauds and the damage to their reputations was “enormous”.
Judge Griffiths said Jones had shown no remorse as he “ducked and dived,” taking opportunities to obstruct the release of the funds.
The Solicitors Regulation Authority has launched its own proceedings against Jones, stating his “striking off is inevitable”.
The company is also working on plans to rejuvenate the Kenmore Hotel.
