On 10 November 2011, Dr Mostafa, an undischarged bankrupt, deposited $500,000 into a new bank account; $450,000 was withdrawn and deposited into his de facto’s (now wife) account, $20,000 was withdrawn in cash and $50,000 was deposited into his solicitor’s trust account. Dr Mostafa later instructed his solicitor to transfer $44,000 of the funds to his de facto’s account.
Dr Mostafa failed to disclose the receipt of the $500,000 or the new bank account to his trustee. When questioned by his trustee on the use of the funds, Dr Mostafa said they were used to settle personal debts and spent on gambling.
Dr Mostafa pleaded guilty to all five offences and was convicted in the Melbourne County Court on 16 December 2015. He was sentenced to 6 months imprisonment but released on a $1000 recognisance to be of good behaviour for 2 years. He was also fined $500 for attempting to leave Australia without his trustee’s consent.
The case was prosecuted by the Office of the Commonwealth Director of Public Prosecutions.