An AFSA investigation has resulted in a second conviction and sentencing for multiple serious contraventions of the Bankruptcy Act 1966. Mrs Irina Mekhanikova has been sentenced to 12 months imprisonment, released immediately on a recognizance release order that she be of good behaviour for 18 months on security of $1000. The conviction follows Mrs Mekhanikova pleading guilty to disposing and concealing property within 12 months of entering into a personal insolvency agreement and of making a false declaration.
The sentencing follows that of her husband Mr Vadim Mekhanikov, in November 2023. AFSA’s investigation established that the couple had disposed of and concealed assets in an attempt to exploit a personal insolvency process, in violation of the Bankruptcy Act.
Mrs Mekhanikova’s fraudulent activities included:
- The sale of a property in Hobart, receiving settlement proceeds of $274,160.00. Mrs Mekhanikova withdrew $274,010.86 in cash and gifted it to her husband who used the funds to purchase 3.5kg of gold bullion.
- Non-disclosure of an online cryptocurrency account that had $102,000 deposited into it via 13 transactions in November 2021.
- Non-disclosure of the use of a motor vehicle, a further 4 bank accounts, 2 credit card accounts, proceeds from the sale of motor vehicles and property, and gifts made to her husband and son.
AFSA is committed to protecting Australia’s $3.5 trillion credit system through its regulation of the personal insolvency system. AFSA refer cases of system misuse and harm and pursue criminal behaviour to the Commonwealth Director of Public Prosecutions.
Tim Beresford, Chief Executive of AFSA and Inspector General in Bankruptcy, said:
AFSA will not tolerate any illegitimate and illegal actions that jeopardise the integrity of Australia’s credit system. AFSA’s regulatory actions support the flow of credit in the economy by allowing people in financial distress to get a fresh start, and providing a remedy for those who are owed money.
Neville Matthew, National Manager Education Surveillance and Enforcement at AFSA, said: 'Where people try to avoid compliance for personal gain, like Mr Mekhanikov and Mrs Mekhanikova, the Inspector General will act swiftly and decisively.
'These are serious matters and AFSA will continue to exercise its powers in response to deliberate misuse and harm, taking legal action and seeking penalties when needed.
'These latest convictions follow two other cases earlier this year, in NSW and WA respectively, that resulted in imprisonment following an AFSA investigation.'
Sentencing information
Mrs Irina Mekhanikova received the following sentence:
Count 1: Disposal of property within 12 months of signing an authority under s188 of the Act.
Sentence: convicted and sentenced to 1 year imprisonment
Count 2: Conceal property to the value of $20 or more within 12 months of signing an authority under s188 of the Act.
Sentence: convicted and sentenced to 2 months imprisonment
Count 3: Knowingly make a false declaration.
Sentence: convicted and sentenced to 2 months imprisonment
Mrs Mekhanikova released immediately on a recognizance release order that she be of good behaviour for 18 months on security of $1000
Mr Vadim Mekhanikov received the following sentence in November 2023:
Count 1: Conceal property to the value of $20 or more within 12 months of signing an authority under s188 of the Act.
Sentence: convicted and fined $2,500 and ordered to complete 50 hours of community service within 12 months.
Count 2: Knowingly make a false declaration
Sentence: convicted and fined $2,500 and ordered to complete 50 hours of community service within 12 months.
