AN INVESTIGATION has begun into the disappearance of £9.8m. reportedly owed to a Guernsey-based property fund.

The enquiry by the Solicitors Regulation Authority is looking into how a former London law firm partner may be linked to the disappearance of the money, which was being held in escrow.

Locally-listed Stirling Mortimer Global Property Fund said that two of its sub funds had not been paid what they were owed by two law firms – ELS International lawyers and European Legal Solutions.

A High Court order has frozen the worldwide assets of Joe Azaz, who used to work for ELS International lawyers.

Tamara Menteshvili (pictured), the chief executive of the Channel Islands Stock Exchange, on which the company is listed, confirmed knowledge of what was going on.

‘We were aware of this – we will have no involvement in the investigation,’ she said.

She said that would be up to the company’s board.

A Stirling Mortimer Global Property representative said its board believed the money would be reclaimed.

‘A worldwide freezing order has been obtained by ELS in the UK High Court of Justice against the former ELS partner’s assets,’ he said.