A Western Australian bankrupt and his wife have been handed down prison sentences after illegally disposing of assets in the 12 months prior to becoming bankrupt.
The District Court in Perth heard allegations that Sean Mauk and his wife Sally Mauk acted together to transfer Sean Mauk’s interest in his deceased mother’s estate to his wife. The deceased estate, valued at $517,562, should have been available to creditors in the bankruptcy.
The trial concluded on 9 February 2024, and the jury found husband and wife Sean and Sally Mauk guilty.
Sean Mauk was sentenced to 2 years and 10 months, to be released after serving 1 year and 5 months upon entering into a recognizance release order. Sally Mauk was sentenced to 14 months, to be released after serving 7 months, upon entering into a recognizance release order.
Sean Mauk was declared bankrupt in March 2018. In administering Mr Mauk’s estate, the registered trustee discovered that Mr Mauk was originally a beneficiary in the deceased estate of his mother and subsequently transferred his interest to his wife via deed of arrangement. The registered trustee made a referral to the Australian Financial Security Authority (AFSA), and the Inspector General conducted an investigation.
AFSA National Manager Education, Surveillance and Enforcement Neville Matthew, said taking action to deter bad behaviour is critical.
‘AFSA is committed to acting against misuse to protect trust and confidence in the personal insolvency system,’ Mr Matthew said.
‘Under the Bankruptcy Act, disposing of property with the intent to defraud creditors in the 12 months before applying for bankruptcy is an offence.’
The matter was prosecuted by the Commonwealth Director of Public Prosecutions on behalf of AFSA.
Suspected wrongdoing, criminal misconduct, dishonesty, or fraud in a personal insolvency can be reported to AFSA at Report a tip-off. Tip-offs can be made anonymously.
Sentencing information:
Sean Mauk was found guilty of the following offence:
- Dispose of property within a period of 12 months after the disposal of that property a petition for bankruptcy was presented, contrary to s266(3) of the Bankruptcy Act 1966
Sean Mauk was sentenced to 2 years and 10 months, to be released after serving 1 year and 5 months upon entering into a recognizance release order in the amount of $100 to be of good behaviour for the balance of the sentence, being 1 year and 5 months.
Sally Mauk was found guilty of the following offences:
- Receive property from a debtor who becomes bankrupt with intent to defraud creditors contrary to 263 (1)(b)(iii) of the Bankruptcy Act 1966
Sally Mauk was sentenced to 14 months, to be released after serving 7 months, upon entering into a recognizance release order in the amount of $100 to be of good behaviour for the balance of the sentence, being 7 months.
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Media contact:
Email media@afsa.gov.au
