Bankrupted more than eight years ago and sentenced to two years three months imprisonment during that time for Insolvency Act offences, former Auckland chartered accountant Stuart Francis Clarke was released from bankruptcy on condition that he not act as a trustee or director until August 2024.
Clarke was bankrupted in March 2014 on a Westpac guarantee for money used to purchase a Hamilton commercial building. In the normal course of events, he would expect to be discharged from bankruptcy three years later. But the three year clock does not start ticking until a bankrupt files with Insolvency Service a personal budget together with details of all assets and liabilities. The High Court was told Clarke provided incomplete information and refused to answer Insolvency Service questions. The clock never started. He was imprisoned after pleading guilty in 2018 to multiple Insolvency Act offences including managing a business whilst bankrupt, concealing assets and contributing to the extent of his insolvency with extravagant spending around the time of his bankruptcy. Evidence was given that he spent some $84,000 on personal expenses over a 21 week period.
Insolvency Service did not challenge his court application for discharge. The High Court was told Clarke is now aged 65, his only income a state benefit. He has no assets, but holds assets in his name as an independent trustee of client family trusts.
Associate judge Sussock ruled that it is not in public interest to leave a person perpetually in bankruptcy. There is a point where they have to get on with their life. She discharged Clarke from bankruptcy with immediate effect, subject to the condition he not act as a director or trustee before August 2024.
re Clarke – High Court (29.04.22)
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