Property developer sent down

A bankrupt property developer, who hid the funds that would have been the main asset in his bankruptcy, has been handed an 18-month jail term following investigations by The Insolvency Service and the Department for Business, Innovation and Skills.

Giles Nicholas Gilbey, a 47 year old builder and property developer from Peterborough pleaded guilty before Northampton Crown Court to removing £143,000 from his estate. The amount, Gilbey’s share of the sale of his family home, was removed in cash. He then failed to give a satisfactory explanation of what happened to the money to the Official Receiver even though he was legally required to do so.

In the prosecution brought by The Department of Business, Innovation and Skills, Gilbey did not contest two charges of removing property and one of failing to provide a satisfactory explanation for a loss.

Gilbey, who had been pursued for unpaid debts for a number of years before he was made bankrupt, was well aware that any profits from the sale of his property should have been paid to his creditors. As a result Gilbey was sentenced to serve six months imprisonment for each of the three charges, which will run concurrently. He will therefore serve a total of 18 months in prison.

Stephen Speed, chief executive of The Insolvency Service said: “People genuinely struggling with debt who want to benefit from the debt relief arrangements offered by the insolvency regime must be prepared to declare all of their assets or face the penalty imposed on them. It is for the Official Receiver to decide which assets should be sold for the benefit of the creditors and which may be retained by the debtor.””