The liquidators of collapsed Gibraltar based law firm Marrache & Co have filed a claim to sue Baker Tilly Gibraltar for £28m.
The Gibraltar firm is a branch of Baker Tilly International Network and not related to the UK operation.
Chantrey Velllacot partner Adrian Hyde and PwC Gibraltar partner Edgar Lavarello have filed a claim at the Supreme Court of Gibraltar, alleging negligence, breach of duty, conspiracy and dishonest assistance for audit advice given prior to the law firm's collapse in 2010.
It claims that Baker Tilly acted in breach of contract, or negligently, by failing to identify or report the ‘wrongful withdrawal of monies from the firm’s client accounts’ and also it was party to a conspiracy involving Marrache founder Benjamin, Isaac, Solomon Marrache "to defraud and injure the firm by the withdrawal of very significant sums of money from client accounts".
In addition, the liquidators say that the Marrache brothers breached their fiduciary duties to the firm and that Baker Tilly assisted with this.
Baker Tilly applied for an extension of time to serve its defence and appeared in court before Justice Jack, who ordered them to file a strike out application which will be heard over two days in March 2015.
This case follows the Gibraltar Court of Appeal's decision last week to throw out the Marraches’ appeal against the July 2014 conviction and sentencing to fraud.