Western Australian man convicted for disposing of money during bankruptcy

On Friday 29 November 2019, Mr Edward Moore was sentenced in the Perth Magistrates Court after pleading guilty to three charges under Commonwealth bankruptcy legislation.

Mr Moore was convicted and sentenced to an 18 month Intensive Supervision Order.

The charges related to disposing of property, specifically $97,000, with the intent to defraud creditors, and failing to disclose information to his bankruptcy trustee.

Mr Moore was declared bankrupt voluntarily in June 2017.

During a bankruptcy, a trustee is legally obliged to use a bankrupt person’s assets to repay creditors. This includes any assets received while bankrupt, for example lottery winnings or inheritances.

In December 2017, Mr Moore became aware that he would receive an inheritance from a deceased estate. In January 2018, he contacted the Commonwealth Government’s personal insolvency regulator, the Australian Financial Security Authority (AFSA), to discuss his obligations.

AFSA advised that the inheritance would need to be provided to Mr Moore’s bankruptcy trustee.

Mr Moore failed to contact his bankruptcy trustee to alert them to the inheritance, and within one week of receiving the $97,000, he had spent the money.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions on behalf of AFSA.

Charges:

Bankruptcy Act 1966 (Cth)

Mr Moore pleaded guilty to three charges under the Bankruptcy Act 1966 (Cth):

Count

Offence

Description

Maximum Penalty

1

1 x s 265(1)(a) of the Bankruptcy Act

Not fully and truly disclose to the trustee all of his property, and its value.

12 months and/or a fine of $12,600.00

2

1 x s 265(1)(ca) of the Bankruptcy Act

Not fully and truly disclose to the trustee of his/her estate such information about his conduct and examinable affairs as the trustee required.

12 months and/or a fine of $12,600.00

3

1 x s 266(1) of the Bankruptcy Act

Being a person after the presentation of a petition on which or by virtue of the presentation of which he or she became a bankrupt, disposed of property intending to defraud his creditors.

5 years and/or a fine of $63,000