The troubles began as the Libyan revolution took hold in 2011. FMCP directors appointed by LAP stopped attending board meetings, leaving Marino and a colleague to make remuneration and investment decisions without supervision, lawyers for the fund said in court documents.

In March 2011 FMCP’s ability to trade was "severely hindered" when LAP was placed under sanctions imposed on Qaddafi’s government, according to Marino. Even so, the pair "took advantage" of the directors’ absence to approve a formula for "substantial" bonus payments, lawyers for FMCP said.

Performance Targets

The men also allegedly reset performance targets, enabling FMCP to dish out increased fees. The performance fee income for the fourth quarter of 2011 alone was more than 2 million pounds, the fund said.

Marino received 240,000 pounds a year starting in May 2011, which was at least 100,000 pounds more than he was entitled to under his employment contract, according to the lawsuit. He also received 2.6 million pounds in management bonuses and another 214,160 pounds in trading bonuses that FMCP says he wasn’t entitled to receive.

In his defense filings, Marino said that communications with Libyan officials became increasingly difficult, with e-mails bouncing back or simply never answered. Still, he says, the pay increases were approved by directors and were in line with the compensation levels mapped out before he even started at FMCP.

Marino told Sharif during the 2009 meeting that he expected to be paid a 2 percent to 3 percent commission, and mentioned a figure in the region of $18 million pounds, according to Marino’s defense. Sharif "did not demur or object," he said.

Fallout over Libyan investments during and after the fall of Qaddafi has spilled into U.K. courts. The $60 billion Libyan Investment Authority, LAP’s parent, sued Goldman Sachs Group Inc. and Societe Generale SA, each for more than $1 billion, trying to recoup losses from investment deals that turned sour. Both banks are contesting the allegations.

The rival government entities in Libya are seeking any proceeds from both the Goldman Sachs and Societe Generale lawsuits, an issue that will be reviewed at a London trial that starts Monday.

In addition to salary and bonuses, the Marino lawsuit details more than 225,000 pounds in expenses Marino allegedly incurred through January 2014. The Lanesborough Hotel in London, across the street from the gardens of Buckingham Palace, was a favorite spot. The 165,000 pound-bill also included 1,660 pounds for laundry.