Media Release: SA (Schifilliti) – Bankrupt convicted for obtaining loan without disclosing his bankruptcy

Friday, November 16, 2018

On 21 September 2018, Mr Paul Simon Schifilliti was convicted and fined $3,500 in the Adelaide Magistrates’ Court, for obtaining loans in the amount of $20,000 without disclosing his status as an undischarged bankrupt.

Mr Schifilliti was made bankrupt on 9 April 2015 by way of Sequestration Order on the petition of Bloem Pty Ltd. He then borrowed money from an acquaintance without disclosing to her that he was a bankrupt. The amount borrowed was by way of three loans in the amounts of $10,000, $6,000 and $4,000 respectively between the dates of 17 October 2015 and 22 October 2015.

At the time of obtaining the loans, it was an offence for Mr Schifilliti to obtain credit above the amount of $5,474 without disclosing that he was an undischarged bankrupt.

Mr Schifilliti made partial repayments of this loan, however, $13,238 remained unpaid, and the matter was subsequently referred to the Australian Financial Security Authority for investigation.

On 10 April 2018, Mr Schifilliti pleaded guilty to one count of obtaining credit above the threshold of $5,474, without disclosing his status as an undischarged bankrupt.

After he pleaded guilty, but prior to being sentenced on 21 September 2018, Mr Schifilliti repaid the balance of the offending amount of $13,238 to the victim. Mr Schifilliti was required to pay a fine of $3500 for his breach of the Bankruptcy Act.

In his reasons, Magistrate Fahey accepted that the offending was serious but emphasised the repayment of the money had an impact on his sentencing decision.

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

Key Points

1. Mr Schifilliti became bankrupt on 9 April 2015.

2. Between the dates of 17 October 2015 and 22 October 2015, Mr Schifilliti obtained loans totalling $20,000 from an acquaintance without disclosing that he was a bankrupt.

3. Mr Schifilliti made partial repayments, which ceased, and the matter was referred to AFSA for investigation.

4. Mr Schifilliti pleaded guilty to a contravention of Section 269(1) of the Bankruptcy Act 1966 (Cth) on 10 April 2018.

5. Mr Schifilliti repaid the balance of $13,238 owed to the victim and was subsequently convicted and fined $3,500 in the Adelaide Magistrates’ Court on 21 September 2018.