Bournemouth Businessman's £500,000 stash

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Bounemouth businessman stashes away £500,000 in cash !

The Insolvency Service said that the case of Bournemouth businessman Richard Carr should be a warning to us all of what can happen if you try to beat the system.

If you are made bankrupt and thereafter are found to have put assets beyond the reach of your creditors you can expect similar treatment to that of Mr Carr.

Bournemouth's Official Receiver, Mr Tony Ryan said the Mr Carr's actions to hive off £500,000 of monies after his business went into administration could have seen the property developer and nightclub owner in court. An application was prepared to have his alleged conduct considered, but Mr Carr signed an undertaking as an alternative.

If a person that has been made bankrupt acts inappropriately a "Restriction" can be placed on them by the Insolvency Service. Mr Carr signed a 10-year undertaking not to act as company director without permission from the court. The order also obliges him to disclose his bankruptcy when applying for credit of £500 or more.

The problem has arisen because just prior to the collapse of his business empire Mr Carr withrew £150,000 in cash from his UK bank account, transferred £100,000 to a US bank account and paid two amounts of £98,563 and £169,636 from the sale of property into the account of a relative's husband.