18 months in jail for bankrupt property developer

18 months in jail for bankrupt property developer

11:19 AM, 20th June 2011, About 13 years ago

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A property investor has been jailed for failing to declare funds


A property developer has been sentenced to 18 months in prison after failing to declare £143,000 he removed from his estate. 

Giles Nicholas Gilbey had received the money from his share of the sale of his family home. He could not satisfactorily show where the money had gone, despite knowing it should have gone to his creditors. 

Mr Gilbey has been given three six-month sentences which will run concurrently, resulting in his 18-month term. The charges against him from The Department of Business, Innovation and Skills were two charges of removing property one of failing to provide a satisfactory explanation for a loss. 

After removing the money from his account in cash in November 2009, Mr Gibley presented some accounts to the Official Receiver in May 2010. These claimed to show how £72,000 of the money had been spent but the explanation was deemed unsatisfactory. 

Ian West, a Deputy Chief Investigation Officer with the Department for Business, Innovation and Skills offered a warning to others in a similar situation to Mr Gibley, saying – “Mr Gilbey’s prison sentence sends a clear message to bankrupts who attempt to put their financial assets beyond the reach of their creditors. The Insolvency Service and the Department for Business will investigate and take robust action when we find evidence of funds being hidden to the detriment of creditors.” 

Stephen Speed, Chief Executive of The Insolvency Service also commented- “People genuinely struggling with debt who want to benefit from the debt relief arrangements offered by the insolvency regime must be prepared to declare all of their assets or face the penalty imposed on them. It is for the Official Receiver to decide which assets should be sold for the benefit of the creditors and which may be retained by the debtor.” 

Source – NDS

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