01 August 2018

Bankruptcy: Helsby-Knight v. Official Assignee

Serial fraudster Michael Helsby-Knight, now known as Mike Lafferty, was refused High Court approval to carry on a business.  He has remained bankrupt since 2001.
Mr Lafferty has an extensive history of criminal offending stretching back to 1985.  He has been bankrupted twice in Australia and any automatic discharge from bankruptcy in New Zealand is barred.  He has been banned indefinitely in New South Wales from being involved in any business. Bankruptcy restricts Mr Lafferty’s business opportunities.  He is barred from running a business.  He was convicted in 2005 for breaching this rule.  Mr Lafferty has a history of scams involving sales promotions centred on travel, timeshares and immigration.  Work as an employee requires prior Insolvency Service approval.  In 2008, Insolvency Service refused his renewed employment with immigration agency Wealand International NZ Ltd after allegations of immigration scams within the company.
Mr Lafferty challenged in the High Court refusals by Insolvency Service to approve two proposed business opportunities.  He claims it is biased against him.  The first related to a door-knocking venture in which Mr Lafferty intended to approach home-owners asking if they required any home maintenance or intended to sell.  He would then put them in touch with appropriate providers.  Insolvency Service said there was a risk Mr Lafferty would prey on elderly homeowners, taking deposits without any service being provided.  This despite Mr Lafferty’s promises that he would not be collecting deposits.  The second intended business was an online business re-selling second hand goods obtained from garage sales and charity shops. Insolvency Service said the risk is too high that Mr Lafferty will not deliver goods after receiving payment or will make false representations about their quality and authenticity.  The fact that Mr Lafferty has changed his name by deed poll from Helsby-Knight was a complicating factor.  Customers would not be aware of his backstory.
Justice Gordon refused approval.  Insolvency Service had valid concerns, she said. 
Evidence was given that Insolvency Service did approve Mr Lafferty’s request to take up employment as an Uber driver.  This was subject to conditions which were not disclosed.  Mr Lafferty objects to one of the conditions.
Lafferty aka Helsby-Knight v. Official Assignee – High Court (1.08.18)
18.156