Russiavia, thanks for your efforts to make a comprehensive report. It's certainly worth reading, although I am refraining from personally reaching major conclusions until after we have heard more details from WMF.
Regarding Timothy Sandole's qualifications for the job, he could have been an experienced Wikipedian who had solid editing experience in an anonymous account before he registered the Sandole account for the purpose of Belfair-related editing. I hope this is the case.
I'm surprised that Belfair would hire him if he knew very little about copyright, but Belfair may not have had enough experience with Wikipedia to know what questions to ask. I hope that WMF asks basic questions about copyright if someone will be editing for pay or training new editors.
It's very problematic to hear from Timothy that anyone at WMF was his "direct boss". This raises lots of red flags and adds more complex problems. This is also one of the reasons I hope WMF Legal is aware of this situation because I can think of multiple types of liability this could create.
I would encourage WMF not to rush the process of investigating what happened here including what seem to be contradictory statements in WMF documents and from WMF employees. It would be best to get a comprehensive report even if that takes a week or two.
I appreciate WMF investigating this and that WMF board members have taken an interest.
Pine