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Fund Manager Sues U.S. Law Firm for Fraud Over Carbon-Tax Advice

  • Tax lawyers said to profit from advice to hedge-fund manager
  • Carbon companies were subject of U.K. tax investigation
Drax Power Station As Profit Drops On Carbon Costs And Biomass Conversion

Photographer: Chris Ratcliffe/Bloomberg

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Fund manager David Gorton sued a U.S. law firm for fraud after its lawyers convinced him to buy into a carbon-credit investment that they had an undeclared financial interest in, according to a London lawsuit.

Gorton, who runs a joint venture with Brevan Howard Asset Management, was advised to invest to gain “significant tax relief” by Alastair Wilson and Menna Bowen, who were then at McDermott, Will & Emery, attorneys for the co-founder of DG Partners LLP said in suit filed at the U.K. High Court.