Media release: VIC (Leeder) - Bankrupt convicted for removal of property prior to bankruptcy and disposal of property with intention to defraud
11-Dec-2018 4:29 PM
Mr Kevin Leeder of Parkville, Victoria, was convicted of two bankruptcy offences; hiding a sum of money and disposing of a vehicle that could have been used to repay his debts.
Mr Leeder sold a property in September 2016 and received over $60 000, which was deposited into one of his bank accounts. He then withdrew $40 000, before filing for bankruptcy in November 2016. It is an offence under the Bankruptcy Act to hide money that could be used to repay creditors.
Mr Leeder also disposed of a 2006 Mercedes Benz motor vehicle by claiming he had sold it to a third party for $20,000 and providing a handwritten tax invoice / statement to verify the transaction. The third party was his housemate. No receipt was provided for the alleged cash payment and no evidence was provided of the receipt of the cash amount. Mr Leeder disposed of the vehicle by changing the registered owner details so as to intentionally defraud his creditors.
“Bankrupts need to be honest with their bankruptcy trustee. Honesty helps achieve equitable outcomes for all parties,” said Paul Shaw, National Manager of Regulation and Enforcement with the Australian Financial Security Authority (AFSA).
“Most people in bankruptcy do the right thing, but AFSA has no tolerance for those who intentionally misuse the system.”
Mr Leeder was sentenced in the Melbourne Magistrates Court on 26 November 2018 to a 12 months’ Community Corrections Order that includes performing 250 hours of unpaid community work.
The matter was prosecuted by the Office of the Commonwealth Director of Public Prosecutions on behalf of the Australian Financial Security Authority.
- On 26 November 2018, Mr Kevin Leeder pleaded guilty in the Melbourne Magistrates Court to two counts including removal of property prior to bankruptcy and disposal of property with intention to defraud.
- Mr Leeder sold a property in September 2016 and received over $60 000 which was deposited into one of his bank accounts. He then withdrew $40 000, before filing for bankruptcy in November 2016.
- Mr Leeder was convicted and sentenced to a 12 months’ Community Corrections Order with all core conditions (including that he does not re-offend) and with the special condition of performing 250 hours of unpaid community work.