MOTHER & SON FACE PRISON THREAT FOLLOWING BANKRUPCY
15 Mar 2005 04:15 PM
A bankrupt, who conspired with his mother to avoid paying his
creditors by hiding the proceeds of his house sale, has been ordered
to pay up for face 15 months in prison following a DTI prosecution.
Shane Owen Brown, 45, of Selbourne Road, Sidcup was made bankrupt on
8 May 2000, three days after he sold his house making a profit of
£32,066.
Mr Brown knew that under the terms of his bankruptcy, he should
declare this money to the official receiver so it could be used to
pay his creditors. Instead he transferred it to the bank account of
his mother, Valerie Brown.
When Mr Brown's bankruptcy trustee made enquiries into his financial
affairs in 2001, Valerie Brown transferred £20,000 from her bank
account to an account held by her daughter, Sharon Brown. As
enquiries continued, this money was withdrawn from the account in
cash.
Shane Brown pleaded guilty to fraudulently disposing of £33,000.
After a three day trial, his mother Valerie Mary Brown, 71, of
Southend Close Eltham, London was found guilty of aiding and abetting
her son.
On 10 March 2005 a confiscation order for £23,000 was made at
Woolwich Crown Court against Shane Brown. If he does not pay this
amount he will have to serve 15 months in custody. He was also
sentenced to a 200 hours community punishment order.
Valerie Brown was ordered to pay a confiscation order of £10,000. If
she does not pay she will serve two months in custody. She was
sentenced to a further three months in custody suspended for 12
months.
Notes to Editors:
1. Shane Owen Brown pleaded guilty on 25 August 2004 to
fraudulently disposing of £33,000, whilst bankrupt and commissioning
fraud for the purposes of obtaining an Individual Voluntary
Arrangement.
2. The case was referred to the DTI by the Insolvency Service. 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.
3. A confiscation order is an order to a convicted person to pay a
sum representing the value of his benefit from crime.
4. 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 (Enforcement)
Directorate with a view to the investigation and prosecution of any
offences, where appropriate.
5. General enquiries to the Insolvency Service should be addressed
to the general enquiries helpline 0207 291 6895. Requests for
further information about this news release should be made to the
government news network, details below not to the Insolvency Service.
For further information about the Insolvency Service 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