West Australian man John James Simpson has been sentenced to 20 months imprisonment, to be released on a recognisance release order after serving 6 months in custody.
The sentencing comes after Mr Simpson pleaded guilty to 9 offences under the Bankruptcy Act 1966 (Bankruptcy Act) following enforcement action by the Australian Financial Security Authority (AFSA).
Mr Simpson, who has been bankrupt four times, committed numerous offences under the Bankruptcy Act including fraud, while continuing to run his crane hire business, JJS Crane Hire Services and amassing almost $400,000 in debt.
In the Perth District Court, Mr Simpson was sentenced in relation to the following offences:
- entering into hire goods agreements while bankrupt and not disclosing his bankruptcy
- obtaining property by fraud while bankrupt
- incurring debt/liability by fraud while bankrupt
- failure to disclose conduct / examinable affairs
- knowingly making a false declaration in a statement filed of affairs.
In sentencing Mr Simpson, Judge Miocevich stated that his offending included particularly serious examples of these types of offences with a significant loss to creditors.
“Specific deterrence and rehabilitation and general deterrence, especially general deterrence, looms large in cases such as this. If people think they do not have to comply with their obligations under the Bankruptcy Act it undermines the efficacy of the system of bankruptcy,” Judge Miocevich said.
AFSA Acting National Manager Education, Surveillance and Enforcement Tim Cole welcomed the sentence saying the punishment reflected the severity of Mr Simpson’s repeated wilful disregard for the law and the harm his actions caused to creditors.
“This matter is a clear example of the strong action we take when people disregard their obligations under the Bankruptcy Act and create further harm to creditors through their repeated deceptions and false declarations.
“The personal insolvency system has been established to ensure there are fair outcomes for all parties. AFSA will seek to prosecute, to the full extent of the law anyone who seeks to undermine the system by acting fraudulently,” Mr Cole said.
In addition to the custodial sentence Mr Simpson received, the Judge also made three reparation orders totalling $119,372.88.
This matter was prosecuted by the Office of the Director of Public Prosecutions (Cth) (CDPP) following a referral from AFSA.
