DISHONEST SERIAL BANKRUPT JAILED IN DTI PROSECUTION
23 Feb 2005 12:15 PM
A Grantham man who obtained goods on credit while bankrupt and
dishonestly avoided paying for them, has been imprisoned for six
months following a DTI prosecution.
Mark Brandreth, 43, of Denton Avenue, Grantham, Lincolnshire, is a
serial bankrupt. He first became bankrupt in 1991, and again in 1996
owing creditors more than 40,000. Mr Brandreth was made bankrupt
for a third time in 2002.
During 2001 Mr Brandreth was still undischarged from his second
bankruptcy. This did not stop him from operating a business in the
Grantham called Fan Attic, selling toys and memorabilia. In January
2001 Mr Brandreth purchased goods from European Stock Agencies Ltd,
worth over 2,000, at the Harrogate Toy Fair. Instead of paying for
the goods upfront, Mr Brandreth asked for 30 days payment terms. In
requesting credit while an undischarged bankrupt, and not disclosing
his status, Mr Brandreth was committing a criminal offence.
When European Stock Agencies Ltd sought payment, Mr Brandreth gave
them repeated excuses and promised to send two cheques for the
outstanding amount. The cheques never arrived.
Mr Brandreth had previously been convicted for a similar offence in
October 2000 of obtaining credit while an undischarged bankrupt. In
sending Mr Brandreth to prison, the court took into account the fact
that he should have been aware of the obligations imposed on him as a
result of this previous conviction.
This prosecution was launched following a complaint made by the
Insolvency Service about the activities of Mr Brandreth.
Notes to Editors
1. Mr Brandreth has been subject to three bankruptcy orders: in
August 1991, 16th May 1996 and 27th February 2002.
2. He was convicted on 21st February 2005 in Grantham Magistrates'
Court on:
- one charge of obtaining credit while an undischarged bankrupt
contrary to section 360 of the Insolvency Act 1986; and
- one charge of dishonestly inducing a creditor to wait for payment
of an existing liability, with intent to make permanent default,
contrary to section 2(1)(b) of the Theft Act 1978.
4. Mr Brandreth was sentenced to six months' imprisonment concurrent
on both counts.
5. Mr Brandreth has a number of previous convictions, including one
on 3rd October 2000 of obtaining credit while an undischarged
bankrupt contrary to section 360 of the Insolvency Act 1986.
6. The Insolvency Service is an executive agency of the Department of
Trade and Industry. Its Official Receivers have responsibility for
the administration and investigation of bankruptcies and companies
that are put into liquidation by Order of the Court. Insolvency
practitioners deal with the administration of companies that are put
into Creditors' Voluntary Liquidation. It was during the course of
the Official Receiver's investigation into the most recent bankruptcy
that evidence of the offence came to light.
7. Where Official Receivers discover conduct by bankrupts that might
constitute a criminal offence, the matters are reported to the
Department of Trade and Industry Legal Services (Prosecution) branch
with a view to the investigation and prosecution of any offences,
where appropriate.
General enquiries to the Insolvency Service should be addressed to
the General Enquiries Helpline of 020 7291 6895. Requests for
further information about this news release should be made to the DTI
press office, details below, not to the Insolvency Service.
For further information about the Insolvency Service and
disqualification see www.insolvency.gov.uk
Department of Trade and Industry
7th Floor
1 Victoria Street
London SW1H 0ET
Public Enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215 6740
(for those with hearing impairment)
www.dti.gov.uk