Scotland’s senior law officer has signalled that Michelle Thomson, the former SNP MP, could face prosecution if police investigating alleged irregularities relating to property deals find evidence of criminal misconduct.
Frank Mulholland, the lord advocate, told the Scottish parliament on Tuesday that detectives would be investigating every lead in the inquiry into 13 property deals and mortgage transactions carried out for Thomson and her companies by a former lawyer, Christopher Hales.
Mulholland told MSPs that the Crown Office’s serious organised crime division were in close contact with Police Scotland detectives over the case, after alerting them within six days of receiving the detailed case files.
He then told Murdo Fraser, the Scottish Tory justice spokesman, that the issue of when and how the police could investigate possible suspects other than Hales, who was struck off over the deals last year, was a “highly relevant question”.
Called to answer opposition questions about the unfolding scandal, Mulholland did not mention anyone by name, warning that it was a live police investigation, but he told Holyrood detectives would follow all the evidence available.
“The referral to Police Scotland is about the solicitor who was subject of the Scottish Solicitors Discipline Tribunal finding and police have been instructed to investigate the property transactions relating to that finding resulting in a solicitor being struck off,” he said.
“Police Scotland has a duty in any investigation to follow the evidence and where that takes them. So if during a police investigation evidence arises that other persons have been involved in criminality and fraud or whatever crime that the police have uncovered evidence of, then Police Scotland, I have complete faith in them, [will] act and do the right thing, as will the crown.”
Questioned by Jackie Baillie, for Scottish Labour, the lord advocate had earlier confirmed that the Law Society of Scotland had taken eight months from mid-December 2014 to provide the Crown Office with detailed files on the Hales case, despite several requests from prosecutors for the material.
Thomson has repeatedly denied any wrongdoing and said she will cooperate fully and voluntarily with the police investigation.
Mulholland’s appearance at Holyrood came as Mike Crockart, the Lib Dem MP who lost the Edinburgh West seat to Thomson by 3,210 votes in the SNP landslide in May’s general election, implied that he was keen to fight for the seat again.
Thomson has already lost the SNP whip after resigning as its frontbench business spokeswoman at Westminster last Tuesday, as the police investigation into her lawyer’s property deals came to light. It is understood that the SNP branch in Edinburgh West are now preparing for a byelection.
Crockhart said: “It is disappointing that Michelle has chosen not to answer the justifiable concerns of her constituents. In particular, she should answer the moral and ethical questions raised by a business model which appears to target vulnerable individuals in desperate need of a quick sale to alleviate their financial position.
“Whether or not fraud has happened, it is perfectly legitimate to question these practices and Michelle Thomson should be prepared to state her position. There is a moral case to answer.”
He continued: “The people of Edinburgh West have been badly let down and deserve better. Justice must be allowed to take its course but it would be preferable if this whole business is concluded swiftly as until then, the people of Edinburgh West are being poorly served.”
