Lord Advocate to make public apology over malicious prosecutions in failed Rangers fraud case

Mr Whitehouse and Mr Clark were subjected to criminal proceedings with others in the wake of Craig Whyte's purchase of Rangers from Sir David Murray for £1 in May 2011 and its subsequent sale before a judge dismissed the charges.

Mr Whitehouse, of Cheshire, then brought a damages claim against the Lord Advocate James Wolffe QC and the former chief constable of Police Scotland, Phil Gormley, for £9m. Mr Clark, of Surrey, sued for £5m. In August the total claim was said to have gone up to £21m.

Mr Whitehouse and Mr Clark's actions stemmed from their alleged treatment by the police and prosecution authorities.

The Lord Advocate has previously admitted malicious prosecution and a breach of human rights in the investigation while the administrators sought to clear their names.

Gerry Moynihan QC, for the Lord Advocate, confirmed details of the public apology to Mr Whitehouse and Mr Clark, as another key club takeover figure, Duff & Phelps executive David Grier continues a multi-million-pound wrongful arrest case against the police and prosecutors over the botched probe into the takeover of the Ibrox club by Mr Whyte, making accusations of "misconduct".

Mr Grier, also had the criminal case against him dropped leaving Mr Whyte last man standing in a fraud conspiracy trial. Mr Whyte was acquitted three years ago at the end of a seven-week trial.

Mr Moynihan told of the apology, while fending off attempts to use evidence in the case involving Mr Whitehouse and Mr Clark in Mr Grier's case.

He said: The Lord Advocate has accepted that those two [Mr Whitehouse and Mr Clark] should not have been be prosecuted. They are entitled to be compensated.

"The last thing I would wish to do in circumstances in which the Lord Advocate intends to apologise to them in public, is then to be drawn into a proof unnecessarily to debate the evidence that gave rise to suspicion against them.

READ MORE: Scotland's top law officer admits malicious prosecution over Rangers fraud case

"It is entirely the wrong thing to do in circumstances where it is now a matter of public record that there was no probable cause against these two individuals and they ought not to have been prosecuted. We shouldn't get dragged into this in the back door."

Mr Grier (above) is suing the Crown for £2m and Police Scotland for £9m over his wrongful arrest.

The 58-year-old has also demanded a public apology from officials after the Lord Advocate admitted the “malicious prosecution” of Mr Whitehouse and Mr Clark.

Officers suspected Mr Grier, of London, had broken the law during the sale of the Ibrox side and the businessman was charged with fraud and conspiracy - before the case was dropped.

Mr Grier has always said he was unaware that London finance firm Ticketus funded Mr Whyte's controversial purchase of the club by buying up rights to future season tickets.

In the latest Court of Session hearing, Andrew Smith QC, representing Mr Grier, said the then Lord Advocate Frank Mullholland “departed from Crown regulations” when he allegedly ordered the indictment was served.

Jim Keegan QC prosecuted businessman Craig Whyte in connection with his purchase of Rangers.

Mr Smith told the Court of Session: “There appears to be significant evidence that the former Lord Advocate instructed the indictment be served without a case analysis having been prepared.

“So the former Lord Advocate, according to evidence available, told an advocate depute, Mr Keegan, to serve the indictment. That’s based on evidence from the senior investigating officer [from Police Scotland] in his statement.”

Mr Smith said it was the Crown’s position that the indictment was served due to a “misunderstanding”.

Mr Smith said he planned to question Lord Mulholland, who is now a sitting judge, about the matters.

He also said that emails and recordings allegedly hacked from Mr Whyte and once held by former Rangers supremo Dave King had still to be handed over as part of the proceedings.

The so-called Charlotte Fakes cache of documents were seen as key in the decision to pursue the club fraud investigation.

Judge Lord Tyre ruled in early November that the cache should be disclosed to Mr Grier's legal team.

Mr Grier's representatives say the Charlotte Fakes cache and other documents in connection with the executive's alleged involvement should be handed over believing it showed he knew nothing of the controversial nature of the Ticketus deal at the centre of collapsed fraud case.

But Mr Smith now says this had still not been done a month after the last hearing.

Lord Tyre had been told that the Charlotte Fakes collection of 100,000 emails and recordings some of which were put on the internet were used as "a basis for blackmail".

And Mr Moynihan had previously stated the cache had to be handled with "extreme care" and that it was "not a simple matter in terms of work and sensitivity".

The Charlotte Fakes cache was recovered by the police following communications between Detective Chief Inspector Jim Robertson and Mr King and Mr Smith believes it will show that Mr Grier should not have been prosecuted.

Motions to disclose the cache and other documents have previously been opposed by Police Scotland.

Alastair Duncan QC for Police Scotland had previously said it would take 60 days to "interrogate" any cache if it had to be handed over.

READ MORE: Key Rangers takeover figure prosecuted after Lord Advocate Frank Mulholland 'departed from Crown regulations'

Mr Smith said there was  "concern over a data protection issue and usability of resources" and said they information was being copied onto a single USB stick "for use by the commissioner". It is believed that is a reference to the Scottish Information Commissioner deciding the extent of the level of disclosure, and what should be exempt to prevent breaches of confidentiality.

Mr Smith it was "possible" the task may be completed in the next few days.

In October 2014, several media outlets reported that a man had been arrested in relation to the Charlotte Fakes database.

Reports stated the individual was held in connection with alleged extortion and breaching the Computer Misuse Act 1990.

A statement issued by the Crown Office at that time stated that police had sent a report to the procurator fiscal about the individual.

The press release stated: "A report concerning a 46-year-old man remains under consideration."

The cases continue.