The former liquidator of a collapsed Isle of Man-registered asset recovery firm has been ordered to pay back around $2.5m to the company in liquidation.

A high court judgment concludes that Broadsheet LLC’s previous liquidator Roger Harper had ‘misapplied’ substantial sums - although he had not himself gained financially.

The judgment cites the ‘extraordinary’ history of Broadsheet’s involvement in investigating corruption in Pakistan and the complex legal proceedings that followed as a result.

Broadsheet’s long-running liquidation dates back as far as 2005. Having been dissolved in 2007, the company was restored to the register in 2009 when Mr Harper was appointed as the new liquidator.

Mr Harper was removed as liquidator by order of the high court in January 2024, and Gordon Wilson appointed in his place.

It is Mr Wilson who brought an application against his predecessor, alleging misapplication by him of Broadsheet’s money. It alleged that Mr Harper was guilty of misfeasance and breach of trust as liquidator of Broadsheet.

Mr Wilson alleged that Mr Harper had abdicated his duties and powers to Broadsheet’s beneficial owner Kaveh Moussavi and this had led to the liquidation becoming plagued with difficulties and controversy.

Mr Harper denied any misapplication, breach of trust or misfeasance and insisted he’d never been a liquidator in name only.

But Deemster Andrew Corlett concluded that Mr Harper has misapplied substantial sums, although he stressed that he accepted the former liquidator had not personally benefitted financially.

He noted: ‘Whether this is described purely as misapplication or misfeasance is immaterial.’

The Deemster ordered Mr Harper to repay or restore a total of around $2.5m to the assets of Broadsheet by way of compensation.

This includes sums paid in 2021 of US$582,497 and US$1,778,770 to Mr Moussavi; £36,058 and US$132,182 to Rebecca Mooney Consulting Ltd and £25,000 to Defoe Consulting Ltd.