12 year bankruptcy restrictions for man who failed to declare assets and flouted livestock and labour laws
Andrew Maurice Newsam, previously the subject of an 11 year Bankruptcy Restrictions Order (BRO), was handed a 12 year BRO on 29 February, following a hearing at the County Court at Yeovil, for his repeated non disclosure of assets, failure to comply with livestock and supply of labour regulations and complete disregard for statutory obligations.
Mr Newsam’s ban follows an investigation by the Insolvency Service.
At the time of his second bankruptcy on 1 May 2014, Mr Newsam was already subject to an existing BRO from his first bankruptcy (until September 2019). On 29 February 2016, a second BRO was made against him at the County Court at Weymouth, this time for 12 years.
Mr Newsam is therefore bound by the restrictions set out in insolvency law that a bankrupt is subject to until they are discharged from bankruptcy – normally 12 months – until 2028. In addition, he cannot manage or control a company during this period without leave of the court.
The court heard:
- Mr Newsam was made bankrupt by a trade creditor on 10 July 2007 (his first bankruptcy) and was subsequently made subject to an 11 year Bankruptcy Restrictions Order (BRO) from 24 September 2008 for failing to disclose material assets. Mr Newsam was trading as a farmer. Mr Newsam remains subject to the BRO until 23 September 2019.
- On 3 March 2011, Mr Newsam was sentenced for failing to disclose assets in his first bankruptcy.
- In September 2013, following an investigation by the Gangmasters Licencing Authority (GLA), Mr Newsam was sentenced at the Weymouth Magistrates Court for acting as an unlicensed gang master.
- On 29 May 2013, Mr Newsam was sentenced at Weymouth Magistrates Court following action brought by Dorset Trading Standards for failing to register bovines and failing to test for disease.
- On 1 May 2014 a further Bankruptcy Order was made against Mr Newsam, on the petition of HM Revenue and Customs.
- On 11 September 2014, Mr Newsam was sentenced at Weymouth Magistrates Court for further offences brought by Dorset Trading Standards. He received a custodial sentence of 24 weeks. Mr Newsam did not disclose this to the Official Receiver at any time.
- On 7 October 2014, Mr Newsam agreed and received a settlement of £25,000 in respect of a claim and by 4 December 2014, he received a cheque of £21,482.63 which he cashed but did not disclose to the Official Receiver, his trustee in bankruptcy at any time, as he was required to do.
- On 26 March 2015, the Official Receiver received a letter from a firm of solicitors disclosing cattle, machinery and farm vehicles belonging to Mr Newsam, kept on third party land, further assets that had not been disclosed to the Official Receiver either at the time of his bankruptcy interview or subsequently.
- Mr Newsam also failed to disclose an agricultural subsidy payment of at least £16,000 which he was due to receive.
29 February 2016 a further BRO was made against Mr Newsam for 12 years.
Graham Rogers, the Official Receiver, said:
Mr Newsam has shown scant regard for the law relating to registering and keeping cattle, which potentially puts his fellow farmers and the food chain at risk. In addition he has not complied with the law relating to the provision of labour to other farmers and although he is aware of the requirements of disclosing assets in his bankruptcy he has failed to do so.
It is to be hoped that a further BRO will have a deterrent effect upon Mr Newsam.
Notes to editors
Andrew Maurice Newsam’s date of birth is 25 March 1966 and whilst his exact whereabouts are not known, he is believed to still live in Dorset.
Mr Newsam has had several trading styles. He has formerly traded as ‘AMN Services’, ‘AMN Farm Services’, ‘AM Farming and Affordable Logs’. He has traded as a sole trader and also within a partnership.
If the Official Receiver considers that the conduct of a bankrupt has been dishonest or blameworthy in some other way, he (or she) will report the facts to court and ask for a Bankruptcy Restrictions Order (BRO) to be made. The court will consider this report and any other evidence put before it, and will decide whether it should make a BRO. If it does, the bankrupt will be subject to certain restrictions for the period stated in the order. This can be from 2 to 15 years.
The bankrupt may instead agree to a Bankruptcy Restrictions Undertaking (BRU) which has the same effect as an order, but will mean that the matter does not go to court.
These are restrictions set out in insolvency law that the bankrupt is subject to until they are discharged from bankruptcy – normally 12 months – and include that bankrupts:-
- must disclose their status to a credit provider if they wish to get credit of more than £500;
- who carry on business in a different name from the name in which they were made bankrupt, they must disclose to those they wish to do business with the name (or trading style) under which they were made bankrupt;
- may not act as the director of a company nor take part in its promotion, formation or management unless they have a court’s permission to do so;
- may not act as an insolvency practitioner, or as the receiver or manager of the property of a company on behalf of debenture holders.
Additionally, a person subject to a Bankruptcy Restrictions Order/Undertaking or a Debt Relief Restrictions Order/Undertaking,
- may not be a Member of Parliament in England or Wales.
The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
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Published: 11 March 2016
From: The Insolvency Service