The representative of a partner at London law firm Carter-Ruck has argued she was professionally obliged to threaten a whistleblower with legal action on behalf of Ruja Ignatova, who is is wanted by the US for allegedly running a multibillion-dollar fraud scheme.
Counsel for Claire Gill told the Solicitors Disciplinary Tribunal she acted properly when, in 2017, she told former investor Jennifer McAdam that she faced litigation over online videos critical of OneCoin, an alleged $4 billion ponzi scheme, Law360 has reported.
Justin Rushbrooke, KC of 5RB, representing Gill, told the tribunal that as a solicitor she was required to follow her client’s instructions and was entitled to assume that OneCoin was a legitimate business.
Gill is seeking to have disciplinary proceedings brought by the Solicitors Regulation Authority struck out.
The SRA argues that by 2017 there was significant public information suggesting OneCoin was under police investigation, and that the company’s failure to provide documents should have raised concerns.
Rushbrooke told the panel that Gill had no knowledge that the scheme was fraudulent and that solicitors cannot be punished simply because a client is later revealed to have been involved in wrongdoing.
He said lawyers must be able to represent individuals accused of fraud without fear of disciplinary action and Gill handled the situation appropriately despite having to manage an angry client.
The Legal Services Act 2007 means that libel lawyers are not required to carry out extensive due diligence into the truth of their client’s claims, he also argued.
Although McAdam refused to remove the videos, no claim was ever issued, Rushbrooke said.
The trial continues.
