Judge sums up divorce tycoon Scot Young as a 'fraudster'

The businessman's past catches up with him as a 2009 ruling surfaces in the High Court

The bankrupt tycoon embroiled in Britain's most high-profile divorce has been labelled a "fraudster" in a separate High Court judgment. Scot Young, a property and telecoms magnate in the middle of an acrimonious battle against his estranged wife, has been caught up in separate litigation involving a former lawyer and one of his alleged creditors.

Elizabeth Sears claimed she was owed £100,000 by Stanley Beller, Mr Young's former commercial solicitor, who called his ex-client a "cheat" in the witness box during the tycoon's divorce proceedings earlier this month.

However, in a judgment handed down on Friday, Master Campbell, found the money had been paid back to Ms Sears in 2007 by Mr Young via a lawyer called Stephen Jones, who claims he has never acted for the controversial businessman.

In reaching his findings, the judge relied on emails between Mr Young and Mr Jones, the founder of specialist offshore law firm, Jirehouse Capital.

Master Campbell said: "The first states that Mr Jones was not sure 'if Stanley was even involved in the matter' being a reference to 'the loan Liz (Sears) made to you'.

"The second says: 'And by the way, thank you for all the many happy times I have spent at your house in Miami conjuring up plans to screw Beller.'"

Master Campbell concluded: "The correspondence that Jirehouse's solicitor [Mr Jones], in conjunction with Mr Young, were 'conjuring up plans to screw Beller', speaks for itself."

Michelle Young, 49, alleges her estranged husband, who claims he is penniless and unable to provide for his two daughters, squirrelled away "a few billion at least" in offshore tax havens before their marriage fell apart in 2006.

Ms Young's lawyers have accused Mr Jones of engineering a "sham" property deal called "Project Moscow" – a scheme within which the tycoon was able to hide his vast wealth. Mr Jones and Mr Young have denied the allegations.

Master Campbell labelled the businessman the "fraudster Scot Young", referring to a previous case, presided over by Lord Justice Thomas. In 2009, that judge found that the tycoon had defrauded Mr Beller, which meant the lawyer could no longer comply with undertakings he had made on behalf of his client. He was also struck off by the Solicitors Regulation Authority (SRA).

Lord Justice Thomas said in 2009: "It is no defence to say that he [Beller] was duped; he was plainly duped, but … being duped by your own client is no excuse."

Last week, a forensic accountant told the court that Mr Young wrote a £6m cheque to his creditor, Ms Sears, just before he claims to have lost all his money.

A final judgment on the bitter, seven-year Young divorce battle is set to be handed down by Mr Justice Moor on Friday.

Mr Jones told The Independent on Sunday: "We have never acted for Scot Young and merely facilitated a settlement with his creditors. The matter of any cheque paid to Ms Sears is a matter you should address with her. It has nothing to do with us."

Mr Young and Mr Beller did not return calls. Ms Sears could not be reached for comment.