A New South Wales court has found Stanley Phillip Kaftel guilty of a bankruptcy offence after he was again charged under Commonwealth bankruptcy law. Mr Kaftel will be sentence in August.
Monday’s guilty verdict in Sydney’s Downing District Court comes nearly two years after he pleaded guilty to a range of bankruptcy offences and was sentenced to six months jail, fined $2,000 and ordered to repay over $330,000.
Australian Financial Security Authority (AFSA) Deputy Chief Executive, Gavin McCosker, welcomed the jury’s verdict.
“AFSA is a firm and fair regulator,” Mr McCosker said.
“We investigate allegations of law-breaking and seek convictions to maintain the public’s trust and confidence in the personal insolvency system.”
“Such blatant breaches of bankruptcy law can erode the public’s trust. AFSA welcomes the guilty verdict against Mr Kaftel – a repeat offender.”
The current offence and two of Mr Kaftel’s prior bankruptcy convictions relate to obtaining significant amounts of money without advising the lender that he was currently bankrupt. Under Commonwealth law, people who are bankrupt can borrow money, but must inform the lender that they are an undischarged bankrupt.
Mr Kaftel was made bankrupt in 2012. He was convicted in July 2018 for two offences relating to money he obtained in 2013 and 2014.
In July 2018 he pleaded guilty to obtaining credit of over $300,000 from two acquaintances while he was bankrupt. He did not inform these acquaintances he was an undischarged bankrupt when seeking the credit. Mr Kaftel was sentenced in 2018 to six months imprisonment, fined $2,000 and ordered to repay his victims.
In the months prior to his convictions in 2018, Mr Kaftel committed acts that resulted in the current charge. While bankrupt, Mr Kaftel contacted a business associate, Mr Rodney Adler, to request a loan of $50,000. Mr Adler agreed to loan $25,000.
When questioned by AFSA investigators, Mr Kaftel claimed that he advised Mr Adler that he was an undischarged bankrupt when requesting the money.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions following the referral of a brief of evidence by AFSA. Mr Kaftel will be sentenced in August 2020.