The case represents the potential end of a battle to recover cash which Westfoot lent to Karus in 2013.
We are looking to expand the system with Karus who have been a great company to work with.
In addition, Karus signed a co-development agreement with EOS SpA (Milan, Italy) to discover and develop new oncology drugs.
Karus lost his law licence two years ago after being found guilty of misconduct
Karus's solicitor Michael Foster said: "Mr Karus does not wish to comment.
Karus and his wife, Mary, own a string of businesses in Edinburgh.
And another firm of lenders owed PS400,000 by Karus are trying to get their hands on assets they believe he has stashed in Panama.
Karus - known as Mr Moneybags - owns the building used by the massage parlour and went bust earlier this year with debts of up to pounds 20million.
Scott Moody and Karus were to have graduated this week from Riverside High School in nearby De Graff, the sheriff's office said.
Michael Karus will lose more than 200 office buildings and tenements across Scotland after a bank called in the receivers.