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) guilty of conduct unbefitting a solicitor arising from their involvement with the offshore FSL group of companies, which sold tax-avoidance schemes. The Tribunal found Baxendale-Walker was the effective owner and controller of FSL through the Mount Vernon Trust, concealed his beneficial interest, received undisclosed loans of around £350,000 derived from FSL, and acted with disabling conflicts of interest (personal interest v client, and FSL v purchasing clients) while purporting to give 'independent' advice. He was also found to have misled third parties (including a deliberately untrue letter to Clydesdale Bank). Auden was found to have knowingly participated, receiving disguised commission/loans while advising purchasing clients. The Tribunal expressly found both acted dishonestly, applying the Twinsectra test. Both were struck off the Roll and ordered to pay costs jointly and severally (Auden's share capped at 25% by the Law Society's undertaking). A preliminary challenge to the admissibility of Isle of Man documents was rejected.

Duties found breached:

• Honesty
• Not mislead third parties or opponents
• No conflict between current clients
• Good faith and courtesy to colleagues

Aggravating factors:

• Baxendale-Walker was the effective owner/controller and 'puppet master' of the FSL enterprise, concealing his beneficial interest through the Mount Vernon Trust and offshore structures
• Received undisclosed loans/benefits of approximately £350,000 from MVT despite claiming to be an excluded person
• Gave false and misleading answers to the Law Society investigators, denying loans
• Fabricated/backdated documents (e.g. the purported 20 November letter) and produced documents created after the event
• Obstructed the Law Society's regulatory investigation, refused interviews, and made repeated legal challenges
• Deliberately misled third parties including Clydesdale Bank
• Auden created a false impression by concealing that he continued to receive FSL introduction commissions after joining Baxendale-Walker Solicitors and channelled benefits through Tavendish
• Baxendale-Walker had a prior finding (suspension of three years) for providing a false/improper reference

Mitigating factors:

• Auden had a lesser role than Baxendale-Walker; he was not an equity partner and had no role in creating FSL products or its ownership structure
• Auden asserted no client complaints in 23 years of practice and reported personal/financial hardship and ill health