NSW bankrupt convicted and fined for failing to submit Statement of Affairs

On 6 December 2019, Mr Shaun Moloney was convicted ex parte in the Parramatta Local Court for failing to file a Statement of Affairs, an offence under the Commonwealth Bankruptcy Act.

He was convicted and fined $2,000.

Mr Moloney, of Emu Plains in New South Wales, became bankrupt by order of the court in December 2018 following a petition by Mills Oakley over unpaid debts of just over $16,000.

Mr Moloney was notified of his obligation to file a Statement of Affairs with the Australian Financial Security Authority (AFSA) in December 2018. In February 2019, the Official Receiver issued a 77CA Notice, directing Mr Moloney to file the outstanding statement within 14 days.

Mr Moloney failed to submit the Statement of Affairs and was prosecuted on behalf of AFSA by the Commonwealth Director of Public Prosecutions.

The Director of AFSA’s Enforcement team, Ms Gemma Denton, explained that this is one of three prosecutions this month involving people who have failed to file a Statement of Affairs form.

“We understand that bankruptcy can be a very stressful experience,” Ms Denton said.

“However, bankrupt people must cooperate with their trustees and comply with their obligations under the Bankruptcy Act.

“This includes completing and filing their Statement of Affairs form, which trustees use when administering an estate.

“Our new online Bankruptcy Form incorporating the Statement of Affairs will be released on 2 January 2020. This new form will make it easier for people to meet their obligations.”

Bankruptcy Act 1966 (Cth)

Mr Moloney was convicted of one charge under the Bankruptcy Act 1966 (Cth).

Count

Offence

Description

Maximum penalty

1

s54(1) of the Bankruptcy Act

Failure to file Statement of Affairs form within 14 days of being notified of bankruptcy

50 penalty units ($10,500)

Useful links:

AFSA Enforcement snap-shot 2018-19

In 2018-19, 96 persons were prosecuted for a total of 145 charges during the year. Of those charges, 11 were withdrawn, 122 proven with conviction, 4 proven without conviction, 7 were dismissed and 1 not proven.