The High Court upheld a conviction and $450 fine imposed on Timothy Toilolo for continuing in business whilst bankrupt and for being employed by a relative whilst bankrupt. For over twelve months he continued to participate in his south Auckland accounting practice in breach of the Insolvency Act.
Bankruptcy bars individuals whilst bankrupt from a management role in any business without the prior consent of Insolvency Service. They can continue in employment, but not employment by a relative.
Toilolo was bankrupted in 2014 owing Westpac $186,500. He was then operating an accountancy practice in Manurewa under the name Toilolo & Co Accountants. The High Court was told he continued briefly to carry out client services in his own name then started providing accounting services as an employee of SCF Central Business Ltd, a business owned by his daughter Olivetta Fetulima. SCF Central operated out of Toilolo’s office using Toilolo’s contact email address. Signage for the business remained as before, advertising Toilolo & Co as the accounting business. Toilolo was a joint signatory to SCF Central’s bank account.
The High Court rejected an appeal for discharge without conviction. The consequences of conviction were not out of proportion to the offending, Justice Woolford ruled. Toilolo said a criminal conviction prevented him from continuing as a pastor of the Samoan Assembly of God. He will still be able to continue his good work for the church and the community while not being a pastor, Justice Woolford said. Having now qualified in law, a criminal conviction would hamper his ability to practise as a lawyer, Toilolo said. Not every conviction bars individuals from satisfying the ‘good character’ test for admission to the profession. At the time of his conviction, Toilolo was working as a law clerk for Woodroffe Lawyers.
Toilolo v. Business, Innovation & Employment – High Court (29.03.18)
18.070