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(Recasts throughout, adds quotes, details from court hearing)
By Kirstin Ridley
LONDON, May 24 (Reuters) - A former lawyer of Kazakh mining
company ENRC turned on his own client and effectively invited
the UK Serious Fraud Office (SFO) to launch a corruption
investigation eight years ago out of personal greed, London's
High Court heard on Monday.
Opening a highly anticipated London High Court trial, Nathan
Pillow, a lawyer for ENRC, alleged that former Dechert partner
Neil Gerrard used "scaremongering" tactics on his client, set up
unauthorised meetings with the SFO, and leaked confidential and
privileged ENRC information when it suited him.
Pillow told the court that Gerrard, hired in 2010 to carry
out an internal investigation into a minor overseas
whistleblowing report, personally earned about $10 million by
turning a small job into one so large that it employed more than
50 Dechert fee earners at one point.
"Mr Gerrard had a very direct piece of skin in this game,"
Pillow said, alleging that if Gerrard encountered opposition
within ENRC in his quest to expand his remit and earn fatter
fees, he would seek to "impune and sideline" individuals.
Dechert and Gerrard dismiss the allegations as "an elaborate
work of fiction" and say they stand by their work.
The SFO, which has faced stinging criticism over the
collapse of a separate prosecution last month, rejects all
claims against former senior staff as "hopeless", according to
court filings.
The defendants will lay out their defence later this week.
ENRC fired Dechert in 2013, having paid fees of at least $18
million. Shortly afterwards, the SFO opened an investigation
over allegations of fraud, bribery and corruption surrounding
the acquisition of mineral assets in Africa.
No charges have been filed against the company or current or
former officers.
ENRC, which was co-founded by three billionaire Kazakh
businessmen and the Kazakh government, alleges Gerrard had 30
unauthorised communications with close SFO contacts between 2011
and 2013, breaching his contract and fiduciary duty.
The SFO, it alleges, incited and encouraged Gerrard's
conduct because it was "desperate" to secure a high-profile
corporate scalp.
The SFO stands accused of misfeasance in public office and
ENRC is seeking public vindication and multi million pound
damages for "very significant losses".
Former SFO director Richard Alderman, who left the agency in
2012, former interim director Mark Thompson and David Green, who
held the reins for six years, are among those expected to
testify in the 11-week trial - one of a string of lawsuits filed
by ENRC since 2013.
($1 = 0.7048 pounds)
(Reporting by Kirstin Ridley; Editing by Kirsten Donovan and
Jan Harvey)
