Lincoln accountant Russell Payne faces eight years of restrictions after failing to disclose to the Official Receiver that he had disposed of assets in the lead up to his bankruptcy.
He told interviewers that between 2009 and 2016 he had borrowed sums of money from various parties to fund building ventures, supplement his income, repay existing debts and fund his long-term gambling addiction.
The eight year bankruptcy restrictions undertaking from 16th November 2017 until 2025 follows an investigation by the Insolvency Service. Bankrupts are normally discharged after 12 months.
After a Bankruptcy Order was made against him on 16 June 2017 Payne was interviewed by the Official Receiver and failed to disclose that he had disposed of assets in the lead up to the Bankruptcy Order being made. In March 2017 he received £99,073 (after payment of tax, fees and a mortgage) in consideration for the sale of shares in a limited company of which he was a director. Payne used £58,000 of the proceeds to repay a debt to a relative, £10,000 to repay two creditors, and the remainder to pay for household expenses.
Gerard O’Hare, an official receiver at the Insolvency Service said: “Where a bankrupt has taken undue risks with creditors’ money, he should not expect to do so without repercussions, particularly when others suffer financial loss as a result.
“A bankruptcy restriction in these circumstances will serve to provide creditors with a degree of protection, and it will also act as a deterrent to the bankrupt not to act in a similar manner in the future.
“Payne was declared bankrupt on 16 June 2017 with a deficiency of £4,508,831. He was interviewed at the Official Receiver’s office at which time he stated that between 2009 and 2016 he borrowed sums of money from various parties to fund building ventures, supplement his general income, fund repayments to existing debts and to support his long term gambling addiction.