Extended restrictions for bankrupt who disposed of assets
21 Jun 2019
A Lincolnshire auctioneer who helped a company in administration dispose of assets to the detriment of its creditors has had his bankruptcy restrictions extended for eight years
21 Jun 2019
Edward Swindells is a Lincolnshire auctioneer, valuer and insolvency consultant, who acted for Acquisition 3957865 Ltd – formerly known as Maestermyn (Marine) Ltd – between January and March 2017, in the sale of a number of canal boats.
He sold the assets for over £100,000, despite knowing they were under the control of joint administrators appointed to the company Acquisition 3957865.
The money from the sale of the boats was then passed to a third party, despite promises to the joint administrators that the funds would be passed to them, and could not be recovered.
As a result, the joint administrators applied to court to have Swindells made personally liable for the money and, once that was granted, petitioned for his bankruptcy, which was ordered in October 2017.
Bankrupts are normally discharged from their restrictions 12 months after they are made bankrupt but due to the seriousness of Swindells’ misconduct, the official receiver applied for further sanctions through the courts.
An eight-year bankruptcy restrictions order has now been handed down in the county court at Central London. Swindells did not attend the hearing.
Restrictions imposed on him include being unable to borrow more than £500 without telling a lender that he is subject to extended restrictions, or acting as a director of a company without the court’s permission.
Ken Beasley, official receiver for the Insolvency Service, said: ‘Eight years of extended bankruptcy restrictions is a significant ban and serves as a warning to others tempted to circumvent insolvency legislation.’