Burness Paull sued after £400m hedge fund collapse

Burness Paull is being sued after the collapse of a £400m hedge fund at the centre of a major police fraud probe, according to a report in the Herald newspaper.

It reports that the firm is facing the legal action from the liquidators of Heather Capital, the offshore financial empire run by Glasgow-born but Spanish-based tycoon Gregory King.

The Herald reports that Burness Paull is understood to have acted for at least one of the businesses in Mr King's network of companies.

Heather Capital raised hundreds of millions in international finance to lend against Scottish property before going under in 2010. Most of its money has been lost.

Heather Capital's liquidator, Paul Duffy of Ernst and Young on the Isle of Man, has launched a series of lawsuits against firms of lawyers and accountants who carried out work for the hedge fund and its affiliates before their collapse.

The exact nature of the actions has not been revealed but it is understood Mr Duffy is trying to secure tens of millions of pounds lost by Manx-registered Heather Capital for investors across the globe.

A spokesman for Ernst and Young told the Herald: "I can confirm that Heather has made a claim against Burness via its liquidator, but cannot provide any further comment on the ongoing case."