The importance of integrity for insolvency professionals

Registered trustees and debt agreement administrators are reminded to carefully review their fraud protocols, after a former insolvency practitioner plead guilty to fraud and dishonesty charges.

Amanda Young, formerly of Jirsch Sutherland, was convicted in the Downing Centre Local Court of four dishonesty charges after allegedly transferring more than $200,000 from four liquidations.

This case serves as a timely reminder for all insolvency professionals to review their fraud controls and ensure they have appropriate systems in place to protect both their businesses and the monies they hold on trust.

Additionally, if you suspect any wrongdoing by a registered trustee or debt agreement administrator, these concerns can be reported anonymously to AFSA via our website. Alleged misconduct by liquidators, administrators and receivers can be reported to ASIC at asic.gov.au.

General advice and best practice recommendations for insolvency professionals are available in AFSA’s Inspector-General Practice Directions, in our article about practitioner fraud risk management and also in the Insolvency Compliance Program 2020-21.