Media Release: NSW (Kaftel) – Bankrupt goes to jail and ordered to pay reparation

Thursday, July 26, 2018

On 24 July 2018, Mr Stanley Phillip Kaftel was sentenced in the Downing Centre Local Court after pleading guilty to making a false declaration in his Statement of Affairs, obtaining credit without advising of his bankruptcy, omitting details from his Statement of Income, attempting to travel overseas without his trustee’s permission and failing to disclose information about his examinable affairs to his trustee.

In February 2012, Mr Kaftel was made bankrupt on a petition by the National Australia Bank. 

In his Statement of Affairs, he failed to declare the ownership or sale of three BMW and two Audi motor vehicles. 

He also failed to declare three unsecured creditors and his directorship of two companies, Checkstan Pty Ltd and Pro Carwash Pty Ltd.

While bankrupt, Mr Kaftel obtained loans from two friends of $17,500 and $300,000 respectively, without advising he was an undischarged bankrupt. Both friends would not have loaned the money if they had known he was bankrupt. 

These loans have not been repaid.

He failed to declare several bank accounts when he provided his Statement of Income to his trustee. 

Mr Kaftel refused to surrender his passport to his trustee as directed. 

He was advised that he must obtain consent from his trustee prior to any overseas travel and in November 2015, he did seek permission to travel overseas. This was refused, as there were outstanding issues regarding his bankrupt estate.

On 6 December 2015, Mr Kaftel attended Sydney International Airport and attempted to leave Australia. He was stopped by authorities. 

He has failed to provide information to his trustee in relation to his financial affairs and he remains an undischarged bankrupt.

In sentencing, Magistrate Clare Farnan convicted Mr Kaftel and sentenced him to a term of imprisonment for nine months, of which he has to serve six months. 

He was fined a total of $2,000 and a reparation order of $334,437.57 was sought, to be paid to his victims.

Her Honour noted the seriousness of the offending and said Mr Kaftel’s actions were blatant.  She also noted there was a potential harm to creditors, the community and insolvency law and practice.

The matter was prosecuted by the Office of the Commonwealth Director of Public Prosecutions on behalf of the Australian Financial Security Authority.