A bankrupt who failed to invest funds given to him for that purpose has been hit with a 14-year bankruptcy restriction.
Robert Hiom was made bankrupt on 17 February 2014, following the presentation of his own petition.
On 23 June 2016, the Secretary of State accepted a Bankruptcy Restrictions Undertaking from Mr Hiom for a period of 14 years.
Mr Hiom?s undertaking means that he will be bound for 14 years, by the restrictions set out in insolvency law that a bankrupt is subject to until they are discharged from bankruptcy ? normally 12 months ? until 2030. In addition, he cannot manage or control a company during this period without leave of the court.
An Insolvency Service investigation found:
?during the period November 2011 to June 2012, Mr Hiom obtained monies totaling ?1,065,000 from third parties by false representation, in that he failed to use the monies for the purpose for which they were intended, that is, to invest
??504,463 of the third parties? money was used for the purchase of a property in the joint names of Mr Hiom and a family member. The balance of monies were used to renovate the property, to gamble, to make repayments to creditors, including family members, holidays, business class flights and general expenditure
?Only one repayment of ?18,000 was made to the third parties.
Justin Dionne, Official Receiver, stated:
?The duration of the Bankruptcy Restrictions Undertaking against Mr Hiom reflects the severity of his misconduct, in that he used substantial third parties money to fund a luxury lifestyle.?