"What you must ask yourselves is: (1) Are you sure the defendant you are considering was involved in running a business, which in this case is Enviro Associates in Winchester? In order to run a business a person has to exercise any controlling or management function. ... Mr Ryan accepts that he was a director and in control of the company bank accounts and that he led the sales team and was responsible for the daily running of the business. However, he says it was Thomas Knifton who ultimately controlled the company. You have to decide whether what Mr Ryan did amounts to being involved in running a business. If your answer to this question is ‘no’, then you will acquit the defendant you are considering. If your answer is ‘yes’ and you are sure he was involved in running Enviro Associates in Winchester, you will go to question 2. (2) Are you sure that the purpose of this business was the fraudulent sale of carbon credits? What that means in each defendant's case is were the VERs sold dishonestly on the basis of false (either deliberately untrue or deliberately misleading) representations about any or all of the following: (a) Their suitability for investment for individuals. (b) Their profitably. (c) The ability to sell them on, i.e. was there a market for individuals to be able to sell on small quantities of VERs to companies or at all or, alternatively, was it likely such a market would come into existence. (d) That there were exit strategies that would enable onward sale. (e) The commission and/or fees charged. (f) The longevity of the investment. (g) That the purchase of VERs enjoyed consumer (FSA) protection. (h) Their being held securely. (i) Their being held in such a way that they were capable of being traded by the investor. If your answer to this question is ‘no’, then you will acquit the defendant. If you answer is ‘yes’, then you will go on to question 3. (3) Are you sure that at the time the carbon credits were sold to investors the defendant you are considering knew that the investors were being sold VER carbon credits in the way described at (2) above. If your answer to this question is 'no' then you will acquit the defendant. If your answer is ‘yes’, you will go to the final question. (4) Are you sure the defendant you are considering was acting dishonestly? In considering this you must (1) firstly establish the actual state of the defendant's knowledge or belief as to the facts at the time. These facts are not limited to past facts, but include all matters that led him to act as he did and include, where relevant, a consideration of his experience and intelligence. (2) Then ask yourselves whether his conduct was honest or dishonest by applying the standards of ordinary decent people. If you were sure he was acting dishonestly, you will convict him. If you are not sure, you will acquit him."
"It is for you to decide how you approach the evidence that you have heard and in what order you should consider it. At some point, you will no doubt consider the evidence that the defendants have given to you. You will consider what it is that they have told you and how anything they have accepted fits into the overall picture and how you address the questions I have posed for you in respect of the indictment. It is a matter entirely for you, members of the jury, but in answering those questions you may want to start with what the defendants have said to you themselves and with the matters they have accepted before you. Luke Ryan accepts that he was a director and on many documents on the iPad, he describes himself as the managing director of Enviro. He accepts that he was in control of the company bank accounts. You will recall the email where he told Paul Seakens that he would not add him as a signatory as he wanted to keep control of the bank account. He says that he led the sales team and ran the morning meetings. He says that he was responsible for the daily running of the company and he has told you that he wrote the company disclaimer which was checked by others. He also accepts that he was paid in excess of£237,000 into his personal account and just short of£38,000 to Forculus which was a company he set up for tax reasons in the period 2011 to 2014, but of course, he says that Thomas Knifton ultimately controlled Enviro. Now, the first question I have posed for you on count 1 you have to ask yourselves was Luke Ryan involved in running Enviro? To be so involved, he has to exercise a controlling or management function. of course, members of the jury, you will be aware from your involvement in ordinary life that several people may be involved in the running of the company by having a controlling or management function and you may think there is really not much issue here so if you are sure that he was so involved, then you need go further in your assessment. Your answer to question 1 would be yes and you would move on to question 2. On the other hand if you are not so sure, you would then need to go on and examine all the other evidence in the case before you reach your decision about whether you are or are not sure he was involved in running Enviro. The second question in respect of Mr Ryan is are you sure the purpose of this business was the fraudulent sale of carbon credits? Of course, it does not have to be the sole purpose. It may be a business is carried on for a number of proper and legitimate purposes and partly for a fraudulent business purpose. Is that so here? Were VER carbon credits sold [by] Enviro dishonestly on the basis of false, either deliberately untrue or deliberately misleading representations? Now, Luke Ryan has told you that he knew nothing about what was said by his sales teams. He had no idea they were making misleading statements and that if he had known he would have corrected them and you have before you all the evidence about the statements made by the salesmen to the investors. However, one piece of evidence you also have is the recording made by the BBC. That is direct evidence and it relates to selling by Luke Ryan personally. He does not deny anything said on that recording and you may think he cannot. It is there for all to hear. In respect of the second question I have posed for you in respect of count 1, there are a number of representations you could consider. You have them set out on the document I have given you. There is a long list of them and I am not going to go through them individually at this stage. If you are sure that one or more of those are made out then, of course, you would be sure a dishonest, false, untrue or misrepresentation had been made. Now, one such is in relation to commission and/or fees charged. When Luke Ryan was asked by Jonathan [Mr Cuthill, a BBC reporter] about that, he replied that he received a little bit from CNI. Concentrating only on what Luke Ryan has told you himself and putting aside at this point the prosecution contention that Ryan knew about the cost price and the full mark up what he has told you is that he knew the price at which he bought the carbon credits at about£2.75 to£3 and he was proposing a sale at£5.50 . Enviro would therefore receive about£2.50 or£2.75 per carbon credit. That is 45 to 50% of the investors’ money. Of that, on Luke Ryan’s own evidence, 5 to 8% went to the salesman, Simon. Some would be spent on the costs of running Enviro. If you look at the overall income and expenditure of Enviro which is at document 789, Enviro in the period in question received£954,161 . So, you can see that in payment to Luke Ryan himself at Forculus, about 25% went to him so if Jonathan [Cuthill] had spent£10,000 on the carbon credits that day, regardless of the mark up from EAL to CNI, Enviro out of this£10,000 would have received£4,500 to£5,000 and Simon would have got around£500 to£800 . [Simon being an Enviro salesman.] Luke Ryan personally into his pocket would have got between£2,000 and£2,500 . Now, in cross examination, he was asked about a little bit and he replied that Jonathan did not ask what a little bit was. He went on to tell you that had he done so, they may have discussed it further. You may want to consider he may well have told Jonathan that it was as he understood it and that 50% was going to his supplier and he was personally getting£2,000 to£2,500 . Of course, members of the jury, that is a matter for you. You may not accept his evidence at all and you may be sure that the Crown suggest that he knew far more than he was saying. However, on the evidence that he has given you, it is a matter for you, members of the jury, but on the basis of that evidence, Enviro was taking 45 to 50% and he personally£2,000 to£2,500 . A decision for you perhaps to make, is that a little bit? It is a matter of fact for you to decide. If, members of the jury, as a matter of fact for you to decide, you are satisfied that the proceeds Luke Ryan himself accepts includes a deliberately untrue or misleading representation about commission and/or fees alone then, of course, you would answer yes to question 2 and you would move on to question 3. Now, if your conclusion in answer to question 2 was yes on the basis of the meeting between Luke Ryan and Jonathan and Jenny, then inevitably, your answer to question 3 would also be in the affirmative. When you come to consider question 4, you consider the facts as Luke Ryan knew them. On this scenario, you would, of course, have already established those facts and it is a question for you whether applying the standards of ordinary decent people, his conduct was dishonest or not. If you are sure it was dishonest you would find him guilty. If you are not sure, you would find him not guilty. Now, members of the jury, as I have said to you, that is looking purely at things from his evidence alone. You have a huge amount of other evidence which you must also address. It is a matter for you in what order you do so and when you do so."