UK: Bankrupt jailed for six months for asset disposal
The case follows an investigation by The Insolvency Service and a criminal investigation and prosecution by the Department for Business Innovation and Skills (BIS).
Mr Modhu pleaded guilty to removing £23,000 from his account, which was part of the proceeds from the sale of a property to his brother, and for failing to account for the same. He was sentenced to six months' imprisonment for the removal and three months' imprisonment for the failure to account, to run concurrently. He was also ordered to pay £1,000 towards the costs of the prosecution.
Deputy Chief Investigations Officer Ian West from BIS said:
"This case is a clear indication of how seriously the courts take the actions of those who try to defraud their creditors and should be a warning to others."
Ins12/Coms/006
Notes to editors
1.) Mr Modhu of Luton was made bankrupt on 02 December 2008 upon the petition of Luton Borough Council for £7,140.65 for unpaid council tax.
2.) As a bankrupt Mr Gordon was required by section 291 of the Insolvency Act 1986 to give the official receiver such inventory of his estate and such other information, and to attend on the official receiver at such times as the Official Receiver may reasonably require. This includes a duty to explain to the Official Receiver how pre-bankruptcy losses were incurred. It is a criminal offence to fail to provide a satisfactory explanation for losses to the Official Receiver. It is also an offence to remove property from your estate between the bankruptcy petition and the bankruptcy order, subject to the defence of having no intention to defraud or conceal
3.) In sentencing Mr Modhu the judge, HHJ Kay QC, commented that Mr Modhu was someone who recognised the need to pay off debts owed, but preferred to pay friends rather than the council, showing a complete indifference to the bankruptcy petition.
4.) The judge said that Mr Modhu had engaged in a persistent course of conduct that was thoroughly dishonest. He rejected the suggestion that the defendant's gambling addiction was such that he didn't recognise the need to pay off his debts, rather, the defendant had chosen not to pay, hidden his money, and lied for a long period about what he had done. He also said that the defendant's behaviour struck at the heart of bankruptcy proceedings.
5.) The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also:
* authorises and regulates the insolvency profession;
* deals with disqualification of directors in corporate failures;
* assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees;
* provides banking and investment services for bankruptcy and liquidation estate funds; and
* advises ministers and other government departments on insolvency law and practice.
Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk
6.) BIS' mission is to build a Dynamic and Competitive UK economy, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. We investigate and prosecute a range of offences, primarily relating to personal or company insolvencies. Further information about the work of the Criminal Investigations and Prosecutions team is available at http://www.bis.gov.uk/policies/business-law/criminal-investigations
7.) Media Enquiries should be directed to:
Kathryn Montague, Media Relations Manager, 020 7674 6910
Ade Daramy, Press Officer, 020 7596 6187
Contacts NDS Enquiries
Phone: For enquiries please contact the issuing dept
ndsenquiries@coi.gsi.gov.uk
Reported by: NDS UK
Published on: 2012-01-27
Limited copyright is granted for you to use and/or republish any story on this site for
any legitimate media purpose as long as you reference 7thSpace and any source mentioned in the story above. Please
make sure to read our disclaimer prior to contacting 7thSpace Interactive. To contact our editors, visit our online helpdesk. If you wish submit your own press release, click here.
Social Bookmarking
RETWEET This! | Digg this! | Post to del.icio.us | Post to Furl | Add to Netscape | Add to Yahoo! | Rojo
|
|
