JUDGE THROWS THE BOOK AT BANKRUPT PUBLISHER

25 Aug 2005 02:15 PM

A bankrupt businessman who persuaded people to contribute to a book about the actor John Thaw and then refused to pay them has been jailed for 15 months after a DTI prosecution.

Donald Vernon Knox Richards from Wellgreen Road, Liverpool was declared bankrupt in April 2002 owing his creditors £234,381. Later in 2002 Mr Knox Richards started trading as Elius Books and began approaching people to contribute to a book he was producing on the late actor John Thaw.

Mr Knox Richards obtained credit from editors, publishers and contributions from writers and designers, without telling them that he was in fact a bankrupt and as such was breaking the law. It was only when the contributors threatened to sue him for the money that he revealed his true circumstances and told them it was not worth suing him.

A few of the contributors received small amounts of money but between them they ended up £19,925.43 out of pocket. Mr Knox Richards had a record of fraud going back to 1961 and had been sent to prison on several occasions. The DTI had previously prosecuted him for similar offences in 1990.

Mr Knox Richards was sentenced at Liverpool Crown Court under section 360(1) of the Insolvency Act 1986.

Notes to Editors

1. It is an offence under section 360(1) of the Insolvency Act 1986 for a bankrupt to obtain credit above the prescribed sum (£250) without informing the person from whom he obtains it that he is an undischarged bankrupt.

2. 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.

3. General enquiries to the Insolvency Service should be addressed to the General Enquiries Helpline of 020 7291 6895.

For further information about the Insolvency Service and disqualification see www.insolvency.gov.uk

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