'Shark' lawyer stole £400k from will

The 48-year-old prided himself on his ruthless approach to business while amassing a multi-million pound property empire across the city, said former associates.

Karus even named two of his firms GWS (Great White Shark) and Mako – one of the deadliest types of shark – in celebration of his predatory style.

The Evening News understands that Karus is facing a further police investigation into his activities following his conviction.

He has already promised to repay the money he stole using a 500,000 lump sum that he previously lodged with a solicitor.

One close associate told the Evening News: "Karus fancies himself as shark and that's why he called the companies Mako and GWS. He's the predator and he goes out looking for 'pond life', as he calls his victims.

"He used to describe his way of doing business as 'shooting fish in a barrel'. He's an arrogant, stuck-up man who sees himself as better than the rest, but he's a thief and a compulsive liar. He'll bleed you dry."

Karus lives in Gloucester Place in the New Town with his wife Marta and teenage son. Friends say he prefers not to flaunt his wealth and shuns expensive cars and clothes in order to protect his fortune.

Another associate said: "He always pleads poverty because he doesn't want anyone to know what he has. He's afraid someone might take it away."

The lawyer – a former pupil of Merchiston Castle School – made his fortune dealing in property in the Capital over the last 20 years. He built up an extensive portfolio of properties, including homes, wine bars and shops, worth several million pounds.

Among the properties he has owned include ones in Dundas Street and Blair Street, which were used as sex-for-sale saunas, although he insisted he knew nothing about this.

Karus yesterday admitted embezzling 413,052.81 between 5 March and 7 May, 2003, while acting as the executor of the estate of the late Edith Hampton, formerly of the Victoria Manor Nursing Home in Albert Street.

The Crown accepted a not guilty plea to a further charge that Karus embezzled 3,572.84 from the estate of Ms Hampton, who died in March 2003, between 6 and 10 January, 2004.

It is understood the embezzled money had been left in the will of Edith Hampton for charity.

Karus was made partner in the family firm Karus and Co by his late father Louis and worked alongside him until his death in 2001.

Karus now faces being banned from the legal profession for life. Sentence was deferred.

CATALOGUE OF DISGRACE

KARUS first hit the headlines in 1995 when it emerged he was the owner of two buildings – in Blair Street and Dundas Street – which were being used as saunas.

In 2000, Karus faced further embarrassment when an upstairs office he owned in Leith was used by a fireraiser to attack a shop below.

Karus was reprimanded by the Scottish Solicitors' Discipline Tribunal in 2001 over failings in handling clients' business.

The following year, he was suspended from practising as a solicitor by the Law Society of Scotland over account irregularities.

In 2003, Karus was fined 1,000 for matters predating his suspension.

A report from the Insolvency Service said that matters of unfit conduct included failing to maintain, preserve or deliver accounting records to the liquidator, failing to co-operate with the liquidator and failing to lodge accounts on time.