Media release: NSW (Phung) – Bankrupt found guilty of an offence under the Bankruptcy Act

On 11 November 2016, Dr Van Thien Phung, of Potts Point, New South Wales, was convicted and sentenced for removing property within 12 months of going bankrupt.

Dr Phung filed for voluntary bankruptcy in September 2013 with debts of over $1 million.

Prior to his bankruptcy, Dr Phung received proceeds of over $138,000 from the sale of property in Croydon Park NSW.

Dr Phung withdrew in cash $126,700 within the 12 months prior to his bankruptcy and claimed he ‘lost the lot’ on gambling.

He pleaded not guilty.

Magistrate Williams found him guilty and convicted and sentenced him to imprisonment for 5 months, to be released upon giving security to be of good behaviour for 12 months.

In sentencing, Magistrate Williams noted that the amount gambled was significant, making this a serious offence.

He said Dr Phung knew the risk and took advantage of the situation.

Magistrate Williams commented that ‘gambling to win’ does not excuse Dr Phung of his obligations to creditors. He said those creditors were victims and were entitled to their money. By his actions, Dr Phung had deprived them and the estate of the funds.

The case was prosecuted by the Office of the Commonwealth Director of Public Prosecutions.