The Insolvency Service: Bankrupt property developer sent to jail for hiding the proceeds of a house
A bankrupt property developer, who hid the funds that would have been the main asset in his bankruptcy was recently sentenced to an 18-month jail term following investigations by The Insolvency Service and the Department for Business, Innovation and Skills.
Giles Nicholas Gilbey, a 47 year old builder and property developer from Peterborough pleaded guilty before Northampton Crown Court to removing £143,000 from his estate. The amount, Mr Gilbey’s share of the sale of his family home, was removed in cash. He then failed to give a satisfactory explanation of what happened to the money to the Official Receiver even though he was legally required to do so.
Mr Gilbey pleaded guilty to two charges removing property and failing to provide a satisfactory explanation for a loss. I would say he had no choice to do otherwise as he simply had no defence and had to put his hands up.
The Insolvency Service stated that Gilbey had been pursued over unpaid debts for a number of years before he was made bankrupt and was well aware that any profits from the sale of his property should have been paid to his creditors.
He was sentenced to serve 18 months imprisonment, nine for good behaviour.
Commenting on the case, Stephen Speed, Chief Executive of The Insolvency Service said: “It is for the Official Receiver to decide which assets should be sold for the benefit of the creditors and which may be retained by the debtor."
Adding his comments, Ian West, a Deputy Chief Investigation Officer with the Department for Business, Innovation and Skills said: “Mr Gilbey’s prison sentence sends a clear message to bankrupts who attempt to put their financial assets beyond the reach of their creditors.” But does it?
Who says crime doesn’t pay? Think about it, he will probably only serve nine months inside for good behaviour and come out with a hidden stash of £143,000. I make that £3,729.60, tax free for every week he is doing porridge during his nine month stint.
Who’s the winner here?
