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Bankrupt jailed for lying about assets

Bankrupt jailed for lying about assets

A Bankrupt man who lied to the Official Receiver about his assets was jailed for eight months at Lincoln Crown Court.

Keith Reams failed to disclose that he owned property in both Heckington and Sutterton during questioning after he was made bankrupt over a VAT debt of £18,000.

Kirsten Mercer, prosecuting, said Reams later sold the Heckington house for £94,000 using the money to clear some of his other debts but giving some of the proceeds to an insolvency practitioner to clear the HMRC debt. The court was told that the insolvency practitioner is now being investigated over allegations of fraud.

Miss Mercer said Reams resigned his positions as a director of both Lincs Services and the Waggoner’s Rest Hotel after learning of his bankruptcy but continued to illegally act in the management of both companies. The Waggoner’s Rest subsequently went into administration and Lincs Services was later wound up.

Reams (67), of Stone Lane, Sutterton, admitted two charges of perjury and two charges of being involved in the management of a company between May 2006 and August 2007 while an undischarged bankrupt. He has previously been banned from operating as a company director.

Recorder Jalil Asif QC told him “There was clearly culpable dishonesty.”

Neil Sands, defending, said Reams only learned of his bankruptcy some years after the order was made but took immediate steps to resign his directorships.

He said Reams had spent most of his life working on the land and is now in poor health with arthritis and other problems.

“He had a very limited education. He didn’t set out to be dishonest, he now finds himself at the age of 67 living on a state pension of £140 a week. He lives in a room in shared accommodation. He has had no luxury lifestyle and has had no financial gain. All he was doing was seeking to get more comfortable things in his final years. Ultimately, what has happened is the reverse.”

About The Author

Mark Hodgson is the Managing Director of Tremark Associates, one of the UK’s leading providers of investigative services. Mark has 30 years experience in private Investigations and the commercial debt recovery industries. He is Vice President of the Association of British Investigators, a member of the World Association of Detectives, The Institute of Credit Management and an associate member of R3 -The Association of Business Recovery Profession.