Save
Behaviour lands bankrupt Victorian with criminal record
A Victorian man has been convicted of disposing property and making a false declaration to authorities about his financial circumstances prior to filing for bankruptcy.

Behaviour lands bankrupt Victorian with criminal record
A Victorian man has been convicted of disposing property and making a false declaration to authorities about his financial circumstances prior to filing for bankruptcy.

In a statement outlining the conviction that doubled as a warning to all Australians, the Australian Financial Security Authority (AFSA) has highlighted that “disposing of property within 12 months of going bankrupt and making a false declaration are offences under Commonwealth bankruptcy law”.
James Brendan Nash was sentenced to a 12-month community corrections order that includes 120 hours of community service after he pleaded guilty to disposing of more than 30,000 shares held in a private company six months before he declared bankruptcy in April 2015.
He also disposed of five ordinary shares from a separate company “that would have potentially yielded a significant dividend” in January 2015.
AFSA said Mr Nash failed to declare that he had sold, transferred or given away shares in a private company in his statement of affairs.
He also did not declare his previous holding of a company directorship position.
The “serious nature of the charges warranted action”, according to the magistrate presiding over the matter, despite Mr Nash’s low risk of reoffending and guilty pleas.
AFSA’s deputy chief executive, Gavin McCosker, has reiterated the serious nature of any and all efforts to defraud Australia’s personal insolvency system, considering the authority as “a firm and fair regulator”.
“We take enforcement action against those who have broken the law to maintain the public’s confidence in the personal insolvency system,” he commented.
Taking alleged breaches of bankruptcy law seriously, the deputy chief executive noted that AFSA will investigate any issues and work with the Commonwealth Director of Public Prosecutors to seek convictions where evidence of wrongdoing is found.
“It is important that people entering into bankruptcy are honest with their trustee and provide accurate information about their financial circumstances,” he warned.
Mr McCosker said a failure to declare the sale or disposal of shares prior to bankruptcy disadvantages genuine creditors.
“Not only is it unfair, it is also illegal,” he said.
About the author

About the author


Debt consolidation
Heard of robodebt – a controversial government scheme or buzzword?
What exactly is robodebt? We’ve heard all the buzz, now it’s time to know what this controversial government scheme actually is. ...Read more

Debt consolidation
Robodebt class action settles for $1.2bn
The federal government has agreed to a “landmark” class action settlement worth $1.2 billion over its controversial robodebt recovery program, which raised automated debts against welfare reci...Read more

Debt consolidation
Centrelink to resume debt recovery program
Centrelink’s debt recovery program is set to resume from Monday, 2 November, but money owed will not need to be repaid until next year, Services Australia has said. ...Read more

Debt consolidation
When should you use debt?
Despite record-low interest rates and changes to credit regulation making it easier for consumers to get a loan, a wealth educator has urged Australians to keep their debt low in order to build wealth...Read more

Debt consolidation
Fresh robodebt allegations delay Centrelink class action
New allegations have been added in the class action against the Commonwealth government over the robodebt scheme that saw Services Australia illegally issue debt collection notices to more than 370,00...Read more

Debt consolidation
Robodebt refunds are now available: What do I need to do?
Refunds from the government’s illegal robodebt scheme are now being rolled out to affected customers – so what do you need to do to receive your refund? ...Read more

Debt consolidation
When will I get my robodebt refund?
With the government’s recent concession that it would be refunding $721 million from robodebt notices, many Australians are wondering when they can expect the money to be returned to their hip pocke...Read more

Debt consolidation
Centrelink puts 6-month freeze on debt recovery
Government debt recovery activities related to social security payments, the family tax benefit and child care subsidies are set to be paused for the duration of the coronavirus pandemic. ...Read more

Debt consolidation
Heard of robodebt – a controversial government scheme or buzzword?
What exactly is robodebt? We’ve heard all the buzz, now it’s time to know what this controversial government scheme actually is. ...Read more

Debt consolidation
Robodebt class action settles for $1.2bn
The federal government has agreed to a “landmark” class action settlement worth $1.2 billion over its controversial robodebt recovery program, which raised automated debts against welfare reci...Read more

Debt consolidation
Centrelink to resume debt recovery program
Centrelink’s debt recovery program is set to resume from Monday, 2 November, but money owed will not need to be repaid until next year, Services Australia has said. ...Read more

Debt consolidation
When should you use debt?
Despite record-low interest rates and changes to credit regulation making it easier for consumers to get a loan, a wealth educator has urged Australians to keep their debt low in order to build wealth...Read more

Debt consolidation
Fresh robodebt allegations delay Centrelink class action
New allegations have been added in the class action against the Commonwealth government over the robodebt scheme that saw Services Australia illegally issue debt collection notices to more than 370,00...Read more

Debt consolidation
Robodebt refunds are now available: What do I need to do?
Refunds from the government’s illegal robodebt scheme are now being rolled out to affected customers – so what do you need to do to receive your refund? ...Read more

Debt consolidation
When will I get my robodebt refund?
With the government’s recent concession that it would be refunding $721 million from robodebt notices, many Australians are wondering when they can expect the money to be returned to their hip pocke...Read more

Debt consolidation
Centrelink puts 6-month freeze on debt recovery
Government debt recovery activities related to social security payments, the family tax benefit and child care subsidies are set to be paused for the duration of the coronavirus pandemic. ...Read more