Automatic discharge from bankruptcy for Wellington bankrupt Harry Memelink has been postponed to the earlier of three years or prior conclusion of his family trust’s receivership because of his lack of co-operation with Insolvency Service and interference in its bankruptcy administration coupled with his refusal to stop carrying out business activities whilst bankrupt.
He complains Insolvency Service staff are acting like ‘thugs and crooks.’ He says the fact all his assets are currently under control of either Insolvency Service or court-appointed receivers amounts to ‘court-sanctioned gang rape.’
Mr Memelink was bankrupted in 2018. The High Court was told his bankruptcy has been complicated by a lack of business records, a lack of clarity over which assets are owned personally and which are owned by his Link Trust No.1 and his lack of co-operation with Insolvency Service.
Insolvency Service required Mr Memelink to be examined in court on oath. It learnt from bank records he lost some $1.03 million over a two year period whilst bankrupt trading on CMC markets in ‘contracts for differences.’
The High Court was told of Mr Memelink continuing business activities as if he were not bankrupt. He issued invoices for businesses he no longer controlled and took control of business income which should more properly be accounted to Insolvency Service.
Evidence was given of Mr Memelink disrupting asset sales. Acting anonymously through his sister’s TradeMe account, he bid for assets being sold by Insolvency Service; later refusing to pay. He justified this behaviour as a protest on grounds assets were being sold too cheaply.
The High Court was told bankruptcy claims currently stand at some five million dollars. This includes $750,000 in fees and costs incurred by Insolvency Service to date.
The extent and value of assets owned by Mr Memelink is unclear. The High Court was told ownership of some assets are in question, complicated by debts owed to various entities controlled by Mr Memelink. Which assets are owned by Mr Memelink personally and which are owned by his family trust have yet to be clarified. At various times, Mr Memelink has described his Wellington home and a motor yacht as being his personal property, later describing these assets as owned by his family trust. Mr Memelink blames his accountant for the confusion. Previous court cases had ruled Mr Memelink controlled these assets and maintaining proper accounting records was his responsibility.
Included in assets claimed by Mr Memelink are receivables currently in dispute.
Justice Grice linked completion of Mr Memelink’s family trust’s receivership to his potential discharge from bankruptcy to encourage his future co-operation in resolving who owns what. Trust debts need to be cleared before any residual trust surplus potentially becomes available to pay Mr Memelink’s personal bankruptcy creditors.
Official Assignee v. Memelink – High Court (31.10.23)
24.001