The Inspector-General in Bankruptcy and the Official Trustee have applied to the Federal Court of Australia for the repayment of trust money by former registered debt agreement administrator Sam Pos Pty Ltd, trading as Debt Cutter.
In March 2023, the registration of debt agreement administrators Sam Pos Pty Ltd, trading as Debt Cutter, was cancelled following an inspection by AFSA which uncovered concerns around record management and risk controls. Further information is available on the AFSA website.
The Inspector-General and the Official Trustee allege that $1.1 million held by Sam Pos Pty Ltd in its capacity as a debt agreement administrator was paid out to bank accounts associated with the operators of the company, and on paid to a further company unrelated to the debt agreement administration business.
AFSA Chief Executive and Inspector-General in Bankruptcy Tim Beresford said:
This court order is part of the legal process to recover the misappropriated funds, repay creditors and ensure that the integrity and confidence of the personal insolvency system is maintained.
This investigation began due to a tip-off highlighting allegations of financial mismanagement. Tip-offs are an important way for AFSA to maintain the integrity of the personal insolvency system.
I encourage anyone who has information about suspected wrongdoing, criminal misconduct, dishonesty or fraud to report it.
The matter is being litigated by the Australian Government Solicitor on behalf of the Inspector-General in Bankruptcy and the Official Trustee.