Where does one begin the story of Gregory King? On the mean streets of Glasgow, where his father made his fortune as a bookie and his cousin as a nightclub impresario, and where King himself got his start selling cars? Across the Irish Sea on the Isle of Man, where King set up his first hedge fund, Heather Capital, in 2004, raising some $600 million from some surprisingly credulous big names across Europe and North America? Perhaps in Gibraltar, where he “ran” Heather and, when it went belly-up in 2010 on account of it allegedly mostly serving as a vehicle to lend money to himself and his friends backed by worthless vacant, trash-strewn lots in his native Scotland that would never be repaid, and where he set up his second “investment” vehicle, Advalorem Value Asset Fund, which he allegedly used to buy up land in Scotland—from himself? And where the story continues, with the courts of Gibraltar declaring King bankrupt?
During a 40-minute court hearing on Monday, Judge Jack ruled that Gibraltar was the center of Mr. King’s business interests. The special administrator of Advalorem, Adrian Hyde, who has been pursuing Mr. King for repayment, was appointed trustee in the personal bankruptcy.
“After a lengthy period of proceedings, we can now begin the process of tracing and realizing Mr. King’s assets for the benefit of his creditors,” said Mr. Hyde, who is also a partner at CVR Global, an insolvency and restructuring services firm.
“This has ultimately ended with a judgment that shows that Gibraltar will not tolerate its companies being used as vehicles for fraud and will deal appropriately with culprits,” he said.
Which all sounds like pretty bad news for King, except for one thing. He’s not in the jurisdiction of the courts of Gibraltar, or any of Her Majesty’s magistrates anywhere. Instead, he’s holed up in luxury gated community up the coast from the Rock, on a mountain outside of ritzy Marbella, Spain, where he’s demonstrated precisely what he thinks about adverse court orders.
Mr. King, who has been living in a villa in an exclusive gated complex in the south of Spain, had previously tried to avoid being served with an asset freeze order. Without looking at the papers, he threw them back into the car window of the person who delivered them, said a person with knowledge of the exchange.