ONE of Scotland's best known legal firms is in crisis after inspectors uncovered apparent inconsistencies in its books over the use of client funds.
The Court of Session yesterday appointed an accountant to check the financial records and dealings of Glasgow-based Ross Harper, in a move that shocked the legal profession.
It follows concerns flagged up by the Law Society of Scotland during a routine inspection.
The appointment, known as a judicial factor, is highly unusual and only occurs if there are suspected accounting or financial irregularities.
Law firms have access to millions of pounds, but the bulk of the money on their books will belong to clients. These must be ringfenced by law and cannot be used to cover other expenses for the firm, such as wages or rent.
A spokeswoman for the Law Society of Scotland said: "It doesn't happen very often and the society only applies for the appointment of a judicial factor when it has real concerns.
"Last year there were around four judicial factor appointments for the whole of Scotland – you're only ever talking single figures."
Ross Harper, set up by the colourful lawyer in 1961, is one of the most well-known legal firms in Scotland.
He pioneered a drive into the high-street market, becoming the first legal brand to boast 12 offices in Scotland and a specialist in personal injury claims, as well as criminal and family law. It has five branches in Glasgow, Hamilton and East Kilbride.
In the 1980s, Mr Harper famously represented prostitute Carol X in a landmark private prosecution after she was gang-raped in Glasgow and the Crown had deemed her an "unreliable witness". Three men were found guilty.
He was formerly president of the Law Society of Scotland and moved to England after selling his stake in the firm.
One legal source said: "This is very shocking and very rare.
"Ross Harper is a name that's been around us all for years. It's part of the legal fabric of the west of Scotland. Everyone in the legal profession is distressed by this. The appointment of a judicial factor is very rare, although it has been on the increase in recent years due to the difficult economic climate."
The development comes at the end of a turbulent 18 months for the firm, which saw the departure of a number of high-profile and high-earning partners in a restructure which the source said had "sucked the life" out of the firm.
Litigation specialist Cameron Fyfe left the firm to join Edinburgh-based solicitors, Drummond Miller, last year following a 30-year tenure. Although he said he parted on "entirely amicable terms" the legal rumour mill pointed to a dispute between the firm's then-nine partners over how the business was run.
Mr Fyfe was followed out the door by his colleague Professor Alan Susskind, who joined Harper McLeod. Also leaving were criminal law specialists Harvey Diamond and Richard Freeman, who left to forge their own partnership.
In June, Alan Miller, joint managing partner at Ross Harper, said the restructure had been carried out with a view to "adopting a more commercial approach".
Interim factor, Ian Mitchell, of Dundee-based Henderson Loggie Chartered Accountants, will examine the firm's accounts in more detail and ensure the firm can continue to operate. Existing clients can contact Henderson Loggie with concerns.
Ross Harper solicitors did not respond to calls last night.
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