[2024] UKUT 47 (AAC)

In the skeleton argument it is contended that Mr. King and Ms. Wallace did effectively admit misleading the OTC in their proofs of evidence by the admission in Mr. King’s statement, adopted by Ms. Wallace, that he did not declare his sole trader business due to his fear that that would derail everything. It is pointed out that the TC did not consider the fact that the Company had been incorporated almost two months before the DVSA investigation began and it was inevitable that it would at some point apply for a licence. It is said that it is not clear why the TC discounted the quest for a mortgage and did not address the possibility that the timing of the change of directors could have been a coincidence.

In the supplementary submissions it is argued that in his evidence Mr. King clarified with his representative his reasons for resigning as a director of the Company and the TC misinterpreted the clarification as a fundamentally incorrect proof of evidence. It is also argued that the TC stated that Ms. Wallace admitted that her statement was misleading in terms of the Company’s application, but no such admission can be found from the transcript.

In his oral submissions Mr. Finnegan acknowledged that it was not in contention that Mr. King and Ms. Wallace intended to deceive, but said that the question was when they had that intention. On the basis already outlined, he submitted that this finding of fact was also Wednesbury unreasonable and described it as a conspicuously defective finding of fact which infected the entire reasoning and went to the root of the whole case.

Mr. Finnegan also made the point that in paragraph 62 of the decision the TC gave as his reason for disqualifying Ms. Wallace her lack of operational experience and knowledge to oversee the compliance regime, but the possession of such experience and knowledge is not the test of good repute. He argued that if Ms. Wallace was complicit in the deception the TC ought to have said so, and that goes to his inadequate treatment of the issue of deception generally.