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A 72 year old West Australian man, Patrick Naughton, has pleaded guilty to one charge under Commonwealth bankruptcy law in the Perth Magistrates Court.
Mr Naughton was charged with knowingly making a false declaration in a Statement of Affairs – a document that must be submitted to the Australian Financial Security Authority (AFSA) when entering into bankruptcy in January 2018.
A search of Mr Naughton’s residences, conducted by the police as a result of a warrant issued by the Federal Circuit Court, found that he failed to disclose on his Statement of Affairs that he possessed multiple passports, and had owned a diamond Rolex watch valued at over $6,000.
Mr Naughton also failed to disclose that he owned gold coins and bullion, which he reported as lost to the police shortly before entering into bankruptcy.
In sentencing, Magistrate Hills Wright noted Mr Naughton’s age, and that he had no relevant criminal history. His Honour drew attention to the importance of Commonwealth bankruptcy law and the accuracy of the information that bankrupt people provide their trustee and AFSA.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions following the referral of a brief of evidence by AFSA.
Charges and sentence:
Mr Naughton pleaded guilty to one charge under section 267(2) of the Bankruptcy Act 1966 (Cth).
He was convicted and fined $1,600.
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Commonwealth bankruptcy legislation
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