KF Concept: Kevin Foster

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Hearing on 18 July 2005

On 19 July we were informed by Mr Foster of a hearing which had taken place, without notice to us, before Mr Justice Lightman in the High Court at 3:00pm on 18 July. That hearing was to be of Mr Foster's application for a stay of the bankruptcy proceedings (as described above). We are informed that the hearing was adjourned until 20 July to allow us one day's notice so that we may attend and be represented at the hearing.

Hearing on 20 July 2005

Mr Justice Mann began to hear Mr Foster's application, which Mr Foster presented himself as he was not legally represented. He did have help both preparing his application and alongside him at Court, although that person had no rights of audience before the Court. After about 10 minutes, Mr Justice Mann pointed out that not all the papers relating to Mr Foster's application had been passed to him to read in advance. He decided to adjourn the hearing until 2:00pm that afternoon to give him sufficient time to understand more about the background of the matter and exactly what Mr Foster was asking for, including what justification there was for a stay of the bankruptcy proceedings.

When the hearing resumed that afternoon Mr Justice Mann explained to Mr Foster what the Court needed to know in order to consider his application. Mr Foster was given further opportunity to outline his reasons for wanting a stay of the bankruptcy proceedings. Taking account of what Mr Foster and the FSA had submitted, Mr Justice Mann dismissed the application on the basis that Mr Foster had failed to show that a stay was actually what was wanted or needed, pending an appeal.

We did not seek to claim our costs to which we were entitled as this would reduce the monies held within Mr Foster's bankruptcy estate.

Appeal against the bankruptcy order

Separately Mr Foster has applied to the Court of Appeal for leave to make an appeal against the High Court's dismissal of his application for an interim order and the making of the bankruptcy order on 4 July 2005. We have no further details of the progress of this application at this stage.

Questions and Answers

Q1 Did the FSA refuse a request for the release of funds from frozen accounts to pay for Mr Foster's legal representation at the hearing on 4 July?

A1 No. In fact, we gave our consent to the release of funds, as requested, in our letter of 22 June 2005 to Mr Foster's solicitors at the time (Messrs Shakespeares). We took all reasonable steps to ensure that Mr Foster could be represented at the bankruptcy hearing. And we understand that Shakespeares did not stop representing Mr Foster due to any act on the part of the FSA.

Q2 Did the FSA deny Mr Foster the opportunity to obtain legal representation at the hearing on 20 July?

A2 No request was made to us in this regard.

Q3 Why did the FSA not support its petition for Mr Foster's bankruptcy with evidence?

A3 As we set out in our earlier public statements, we supported the petition with a considerable volume of evidence. We submitted to the High Court, and provided each to Mr Foster's solicitors and Leading Counsel, 30 lever-arch files of documentary evidence, including affidavits (statements) outlining the relevant facts and the conclusions we drew from those facts, as well as material obtained in the course of our investigation. Much of the latter was from Mr Foster's own records.

Q4 Why did the FSA deny Mr Foster access to his records relating to the KF Concept which had been removed by the Kent Police and FSA following the execution of a search warrant on his home on 5 February 2004?

A4 We have complied with any request made for access to Mr Foster's records by or on behalf of Mr Foster. Those records were returned to him on 19 May 2005 at his request.