Yes, it's a difficult one, because often it's all about the interests of the council, and the 'optics' of it, and how it would be viewed by voters if it all got into the public domain.
So you could kick up a stink, but it could misfire if it's just yesterday's fish and chips wrapper as far as public opinion is concerned, and then the council might be looking to take revenge
Which is how I view a lot of stuff locally, and it would be a whole lot different if I didn't have to continue to work in the trade, but if I didn't have to work in the trade then I'd maybe then think, what's the point?
Of course, that's the cynical view, and that's not to say everyone in officialdom is that petty and vindictive.
But there are obviously basic compliance check failures by the council here (I mean, you'd surely check if an insurance policy was for H&R rather than SDP, and that it was in the proprietor's name), and to that extent it's totes awkward for them from a PR perspective.
Which is probably influencing how they're approaching it all, and why it's taking so long. Which may in turn be why they haven't acted against the proprietor yet.
And, of course, as well as having reasonable grounds for thinking that you're complicit because of the name on the insurance policy, no doubt police, the insurers and some in the council will have have grounds to think that some people in licensing will have conspired with the proprietor
Of course, it could simply be down to simple compliance failures, but no doubt the authorities will have to investigate all possible avenues.
You will know the ground better than us on here, but I'd wait a few days yet before going to the press, or whatever. In particular, it might be better to wait until it's confirmed whether or not the charges against you will be pressed, and what action is to be taken against the proprietor.
I'm sure it will all come out in the wash eventually, but I'd take your lawyer's advice and hold fire at the moment.