Creditors hit by alleged bankruptcy ruse | The Lawyer – Hepburn

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Creditors were allegedly tricked into a convoluted scam involving a registered trustee, an insolvency counselor and a bankrupt.

A series of properties were raided in southeast Queensland on Wednesday with records seized in relation to alleged fraudulent behavior.

During the bankruptcy, a registered trustee and a pre-insolvency counselor would have assisted the bankrupt in manipulating the outcome of a meeting of creditors, leading to the annulment of the bankruptcy.

Some claimed debts appear to be illegitimate and there are allegations of misrepresentation in official documents as well as the disposal of property before the bankruptcy began, according to the Australian Financial Security Authority’s investigation.

The manipulation of the results of creditors’ meetings has already been carried out by “dodgy insolvency advisers”, said AFSA deputy chief executive Gavin McCosker.

“In this circumstance, the alleged actions of those involved, the person who was bankrupt, the trustee and the adviser, had a significant impact on the true creditors, significantly reducing the funds available to them, he said. .

“Our personal insolvency system relies on the integrity of everyone involved, from leaders of the profession to those simply seeking a fresh start after filing for bankruptcy.”

The investigation is ongoing.

Australian Associated Press

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