The former trustees of an animal welfare charity, which has since closed down, have been criticised for failures to manage risks when pursuing private prosecutions against dog breeders.

The concerns have been raised in a Charity Commission report following a probe into the charity, which launched amid allegations that Animal Protection Services, in conjunction with a law firm, were involved in “malicious private prosecutions for personal financial gain” against the breeders.

The regulator’s investigation found that trustees “did not sufficiently consider or manage the risks associated” with the prosecutions.

They also failed to keep records of key decisions and legal advice relating to the prosecutions, did not “demonstrate sufficiently informed, collective and objective decision making”, or show evidence of payments and employment arrangements.

Failures to manage or document conflicts of interest were also highlighted in the regulator’s report in relation to trustee and former trustees being remunerated.

This includes former trustee Jacob Lloyd, who had been a trustee since the charity launched seven years ago. He was also employed by the charity “either as a consultant or director” for two years.

The charity also hired a former trustee, Serena James, as a deputy director on a salary of £30,000, a role that included conducting investigations into the breeders. The Commission found no evidence that she would be the best person for the role, especially as she was not formally trained as an investigator and had no prior experience of taking out private prosecutions.

The Commission’s report details how the charity submitted a Serious Incident Report to the Commission five years ago amid concerns it had with the legal firm involved in the prosecutions, Parry and Welch Solicitors LLP (PAWS).

This agreement was ended the same year “resulting in an acrimonious parting” involving the law firm unsuccessfully taking legal action to wind up the charity for non-payment of fees and allegations made about the quality of its legal services.

Judges’ concerns

During its probe, the Commission received correspondence from a judge involved in the private prosecution cases citing concerns.

Judge Nicholas Dean QC urged the Commission to investigate potential misconducnt and/or mismanagement amid for what he described as “improper prosecutions brought for improper reasons amounting to abuse of process”.

The Commission’s said “it is very unusual for a judge to make such a referral”.

The following year further concerns were raised by the Ministry of Justice that included a judgement given in Bolton Crown Court by Deputy Circuit Judge HH Tim Clayson, who said that the “prosecutions were misconceived in law, were evidentially deficient in critical and obvious areas, and should never have been brought”.

Separately PAWS was investigated by the Solicitors Regulation Authority two years ago. This concluded that the prosecutions “were not considered to be unmeritorious” and no further action was taken. The Commission understands that the law firm has since stopped trading.

Issues for the wider sector raised in the Commission’s report include ensuring trustee decisions are “properly documented”.

“Where charities undertake higher-risk activities, trustees should maintain adequate records demonstrating how decisions were reached and why they were considered to be in the charity’s best interests,” it states.

“Poor record keeping can make it difficult for trustees to demonstrate proper oversight and accountability.”

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