Tuesday, July 23, 2024

Former bankrupt fined following MBIE investigation

A former bankrupt has been sentenced to six months’ home detention and ordered to pay reparations following an investigation by the Ministry of Business, Innovation and Employment’s (MBIE) Integrity and Enforcement Team.

Vikkram Maan, 36, of Goodwood Heights, Auckland has been convicted of carrying on the management or control of a business without consent under the Insolvency Act 2006 (The Act). The conviction relates to his involvement in managing three companies while an undischarged bankrupt.

Mr Maan pleaded guilty at the Manukau District Court and was sentenced to six months’ home detention and ordered to pay reparations of $24,200 to his victims, including $10,000 for emotional harm.

The court ordered that Mr Maan pay $14,200 to 2 couples ($11,200 and $3,000 respectively) that had booked wedding receptions which did not go ahead at the D’ Grand Haveli in Auckland during the time that Mr Maan was involved in the management of the event management company, with each couple also to receive $2,000 each for the emotional harm caused by Mr Maan. 

He was also ordered to pay $3,000 to the landlord of the Admiral Arms Hotel in Coromandel for the emotional harm caused by Mr Maan failing to pay suppliers, rates and insurance which put the business at risk. A further $3,000 is to be paid to the landlord of the Whitianga Hotel where Mr Maan had previously owed a significant sum of rent arrears.

“There is a fair and effective insolvency process in New Zealand which the vast majority of individuals participate honestly in, ensuring they are able to resolve their financial situations and resume their normal economic lives,” said MBIE Integrity and Enforcement Team Manager, Vanessa Cook.

“Mr Maan chose not to cooperate with this process. As an adjudicated bankrupt, he was prohibited from being involved in managing a business without seeking and obtaining permission from the Official Assignee or Court. Despite being aware of his obligation, he chose to ignore this restriction.

“His actions meant that enforcement action had to be taken and MBIE’s Integrity and Enforcement team will not hesitate to investigate and prosecute individuals acting in this manner in order to protect the public from financial risk,” she said.

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