Australian Financial Security Authority, police raid Bundall property over fraud allegations
State and federal police have joined the financial security regulator in raiding a Bundall office over allegations of insolvency fraud. Here’s what happened:
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THE Australian Financial Security Authority, along with Queensland and Federal police have raided three properties as they investigate fraud allegations around a bankrupt person.
AFSA said it seized documents and other evidence from properties in Brisbane, at Bundall on the Gold Coast and on the Sunshine Coast in relation to suspected fraud by a registered trustee, an insolvency advisor and a bankrupt person.
A statement from the regulator, which is cracking down on dodgy financial services providers, said the raids were part of an investigation that began in July last year.
AFSA said it was investigating whether the bankrupt made a false declaration in their Statement of Affairs, made false statements in official documents submitted in relation to the bankruptcy, and disposed of property before the start of the bankruptcy.
“During the bankruptcy, a registered trustee and a pre-insolvency advisor are alleged to have helped the bankrupt person to manipulate the outcome of a creditors’ meeting, leading to the annulment of the bankruptcy,” the statement said.
“AFSA’s investigation indicates some debts claimed appear to be illegitimate.”
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AFSA’s deputy chief executive Gavin McCosker said the personal insolvency system relied on honesty.
“Manipulating the outcome of a creditors’ meetings is a method that has been used by dodgy insolvency advisors before,” he said.
“In this circumstance, the alleged actions of those involved – the person who was bankrupt, the trustee and the advisor – have had a significant impact on genuine creditors, greatly reducing the funds available to them.
“Our personal insolvency system relies on the integrity of all involved, from leaders in the profession to those simply seeking a fresh start after declaring bankruptcy.
“Any attempts to undermine the system, and use it unfairly, must be treated seriously to maintain trust.”
AFSA’s investigation in the matter is ongoing.
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