P M Baxendale-Walker and W H D Auden

Findings — machine-extracted (anthropic-batch:claude-opus-4-8); verify against the decision

The Solicitors Disciplinary Tribunal found both Paul Michael Baxendale-Walker (sole equity partner) and William Hugh Derek Auden (salaried partner) of Baxendale-Walker Solicitors guilty of conduct unbefitting a solicitor arising from their involvement with the offshore FSL group of tax-avoidance companies. The Tribunal found that Mr Baxendale-Walker was the effective owner and controlling mind of FSL through the Mount Vernon Trust, from which he received loans of around GBP 350,000+, while purporting to act independently for clients purchasing FSL products. This created acute conflicts of interest (personal interest v duty, and duty v duty between FSL and individual clients) and destroyed the independence required of a solicitor. He also deliberately misled third parties (e.g. Clydesdale Bank) and concealed information from the Law Society. Mr Auden was found to be a knowing participant who received commissions/loans channelled through trusts and could not have been unaware of Mr Baxendale-Walker's position. Applying the Twinsectra test, the Tribunal made express findings of dishonesty (conscious impropriety) against both. Both were struck off the Roll. They were ordered to pay the Law Society's costs (including investigation accountant's costs) jointly and severally, subject to detailed assessment, with Mr Auden's liability capped at 25%.

Duties found breached:

• No conflict between current clients
• No taking unfair advantage
• Not mislead third parties or opponents
• Uphold public trust in the profession

Aggravating factors:

• Mr Baxendale-Walker was the effective owner and controlling mind of FSL while purporting to act independently for purchasers of FSL products
• Deliberate concealment of his financial interest in and loans from the Mount Vernon Trust/FSL
• Lying to and misleading the Law Society's investigators (denied receiving loans)
• Fabrication/manufacture of documents and reliance on documents not genuine or contemporaneous
• Deliberately misleading third parties such as Clydesdale Bank in the letter of 12 November 1999
• Obstructive and unreasonable attitude towards the Law Society's regulatory investigation
• Previous finding (April 2005) of providing a false and improper reference resulting in a three-year suspension
• Use of complex offshore trust/company structures to obscure ownership and disguise the relationship
• Mr Auden gave a false impression about when he joined the firm and denied receiving introduction commissions while a Baxendale-Walker partner

Mitigating factors:

• Mr Auden's role was less grave than Mr Baxendale-Walker's; he was a salaried (not equity) partner with no role in creating FSL products or the trust ownership structure (reflected in 25% costs cap)
• Mr Auden asserted he had no client complaints in 23 years and produced messages of thanks (though his untested statement was not accepted as reliable)