Ex-nightclub owner punished over property fraud

Ex-nightclub owner punished over property fraud




A former nightclub owner has been handed a 12-year bankruptcy restriction after distributing £565,000 from the proceeds of a fraudulent property sale….

A former nightclub owner has been handed a 12-year bankruptcy restriction after distributing £565,000 from the proceeds of a fraudulent property sale.


Richard Michael Phillips, 64, of Colchester, received the order from the High Court after it found he dishonestly assisted another in a breach of trust. 

The High Court heard that on 9th June 2011, Mr Phillips received proceeds from a fraudulent sale of a property of £565,000 and in just over a week had distributed that money to various parties. 

The fraud was then discovered by the defrauded buyers of the property and on 16th June 2011, the solicitors for the buyers asked Mr Phillips to return the money. 

The money was never paid and was included in the bankruptcy proceedings. 

Following this, a bankruptcy order was made in February 2013 following the presentation of a petition by the liquidator of Mr Phillips former limited company which found Mr Phillips’ total deficiency was £1.8m of which £1.69m was owed to the liquidator.

It was noted that in subsequent proceedings brought by the defrauded buyers, Mr Phillips agreed to pay them £75,000 - something he did not do and which “materially contributed to his bankruptcy.”
 

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