Bankrupt jailed for more than three years

27 June 2013

Bankrupt jailed for more than three years

An Auckland bankrupt and disqualified company director who stole more than $500,000 has been sentenced to more than three years in prison.

Following a three week trial, John Henry Ede was found guilty on numerous charges including theft by a person in a special relationship involving a total amount of $501,658, managing a business while bankrupt and being involved in a company while bankrupt.

The court heard that Ede diverted money meant for the company Neil Timber Limited (NTL), which he was running unlawfully, to another company Neil Timber Trustees Limited (NTTL). The NTTL bank account was then predominantly used for his personal expenditure. Much of the stolen funds were gambled away.

Ede was sentenced to consecutive sentences totalling three years and seven months imprisonment at the Auckland District Court this week.

MBIE’s National Manager of the Insolvency and Trustee Service Robyn Cox says the law is clear - as an undischarged bankrupt Ede should not have been running a company.

“In addition to this, his actions have caused the company to go into liquidation and creditors to lose money.

“Complaints from the public or government agencies about a bankrupts behaviour are referred to the Official Assignee Compliance Unit for investigation, and prosecutions will result if necessary. Breaches of the restrictions and obligations placed on a bankrupt are a serious matter.

“The sentence sends a strong message that breaches of the insolvency legislation are taken very seriously by the courts.”

The Insolvency & Trustee Service has successfully prosecuted 14 people for breaches of the Insolvency legislation during bankruptcy over the last year.

John Ede was convicted of 21 charges:
• 3x s385(9) of the Companies Act – being involved in the management of a company whilst prohibited
• 2x s128A(1)(b) of the Insolvency Act 1967 – managing a company whilst bankrupt
• 16 x s220 of the Crimes Act – theft by a person in a special relationship

He was sentenced to:
• 3 years and 1 month for each of the theft charges (concurrent)
• 6 months for each the Companies Act and Insolvency Act charges (concurrent)

ENDS

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