The Upper Tribunal has rejected pleas from Keydata founder Stewart Ford to call regulatory staff as witnesses in his long running legal battle against a £75m fine.
Ford and fellow Keydata director Mark Owen are contesting regulatory bans for their role in the collapse of the investment firm. Owen also faces a fine of £4m.
In the latest development in the case, Ford sought to call eight witnesses to give evidence as part of his argument that it was regulatory intervention, rather than the directors’ misconduct, that caused the firm to fail.
Among the witnesses he wanted to summon included senior investigating officers from the then FSA Rebecca Irving and Lilian Small; Tim Harrop, a lawyer from Allen & Overy which advised Keydata on tax matters; and FSCS general counsel James Darbyshire.
Ford and Owen also wanted to call one of the Keydata administrators Daniel Schwarzmann, KPMG Luxembourg manager Eric Collard and Luxembourg regulator senior executive Christiane Campill.
In his ruling published on 7 April, Judge Berner refused all the above applications on the grounds that either the requested witnesses were not relevant or out of jurisdiction for the case.
The judge has allowed only one witness to be summoned, which is former Keydata compliance officer and chief operating officer Peter Johnson.
Between July 2005 and June 2009, over 37,000 investors bought Keydata products and invested a total of over £475m. The FSCS has paid out over £330m.
The case continues.