Press release

Bankrupt gets three-year jail term for double forgery, deception and debts concealment

Terry Robin Patten, a former bankrupt, has been sentenced to a total of three years imprisonment after pleading guilty to seven counts which included obtaining property by deception, concealing debts and forgery, following a hearing at Bournemouth Crown Court (sitting at Dorchester) on 18 June.

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Mr Patten’s conviction follows an initial investigation by the Insolvency Service and a full criminal investigation and Prosecution by the Department for Business Innovation and Skills (BIS).

The investigation showed that between April and July 2005, Terry Patten obtained £38,000 from two individuals, telling them that he would be purchasing three vehicles for his business. In reality the vehicles were not purchased and Mr Patten pocketed the money.

The investigation also showed that In April 2007, Mr Patten was adjudged bankrupt but concealed the debts of two of his creditors owed approximately £140,000, thus preventing them from making a claim in his bankruptcy.

Both of these creditors were people who had loaned him money he claimed he needed to expand his business. This proved to untrue as the money was never used for this purpose.

Furthermore, In 2008 Mr Patten forged documents from the Official Receiver and the Bournemouth County Court in order to further prevent a creditor from making a claim in his bankruptcy.

Commenting on the sentence, Deputy Chief Investigating Officer, Liam Mannall, from the Department for Business, Innovation and Skills said:

“Over a period of time Mr Patten displayed a pattern of dishonesty and deceit which continued during his bankruptcy. The sentence imposed clearly reflects the courts view of the seriousness of such misconduct.

“Bankruptcy is a resort for those seeking relief from overwhelming debt. In return, such individuals are required to be open and honest about their debts and their assets, Mr Patten was not.

“The Department for Business Innovation and Skills will rigorously pursue those who attempt to abuse the bankruptcy regime, as Mr Patten has found to his cost.”

Notes to Editors

Mr Terry Robin Patten is of Bournemouth and his date of birth is 9 July 1950.

The Prosecution offered no evidence in respect of the first four counts on the indictment:

  • Count 5 – 18 months imprisonment, concurrent to count 6.
  • Count 6 – 21 months imprisonment.
  • Count 7 – 18 months imprisonment, concurrent to count 6.
  • Count 8 – 6 months imprisonment, consecutive to count 6.
  • Count 9 – 9 months imprisonment, consecutive to count 6.
  • Count 10 – 9 months imprisonment, concurrent to count 9.
  • Count 11 – 9 months imprisonment, concurrent to count 9.

Details:

  • Obtaining a money transfer by deception from an individual – referred to here as ‘Mr X’ (Count 5) In April 2005 Mr Patten had approached Mr X in order to hire his Bentley for wedding bookings and a working relationship developed. Mr Patten informed Mr X that he had been going to purchase a Mercedes Benz Viano from JCT 600, a Mercedes dealer in Sheffield, on a 50:50 basis but had been let down and was in danger of losing his deposit.

  • Mr X offered to go 50:50 with Mr Patten on the purchase of the Viano at a price of £32,000. On 15 April 2005 Mr X obtained a banker’s draft for £16,000 from his Barclays account made payable to Mr Patten. Mr Patten agreed that Mr Pollard would own 50% of the vehicle and would get half of the net income.

Although Mr Patten intimated that he had a large volume of bookings Mr X received no income from the vehicle. Mr X had received no documents evidencing the purchase of the vehicle thus on 25 July 2005 made enquires with JCT 600 in Sheffield. Mr X established that Mr Patten had not ordered nor purchased any Mercedes Viano and that his money had been spent elsewhere.

  • Obtaining property by deception from an individual – referred to here as ‘Mr Y’’ (Counts 6 & 7) In June 2005 Mr Patten approached an acquaintance, Mr Y, stating that he needed to buy another Mercedes people carrier to keep up with the amount of work he had with his corporate clients. Mr Patten asked Mr Y to invest £10,000 in the vehicle, which would be repaid on a monthly basis plus an additional £2,000.

Mr Y arranged to borrow £10,000 from Barclays bank and on 13 June 2005 collected £10,000 in cash from the bank. Mr Y met with Mr Patten and gave him the money for the sole purpose of purchasing the Mercedes people carrier; in return he was provided with a receipt. In July 2005 Mr Patten repaid £2,300.

Mr Patten informed Mr Y that his business was very busy and he needed another Mercedes people carrier, which could be repaid on the same basis as the previous investment. Mr Patten stated that he needed £12,500 to purchase this second vehicle.

Mr Y approached Barclays bank for a further loan of £10,000 and paid Mr Patten £2,500 in cash on 21 July 2005 and the remaining £10,000 in cash on 26 July 2005. Mr Patten provided a receipt for the monies received and in October 2005 repaid £17,500.

In August 2006 Mr Y obtained a County Court Judgment against Mr Patten for the sum of £43,885.00 and when this was not satisfied Mr Patten was ordered to attend an oral examination. At the examination, in December 2006, Mr Y asked Mr Patten “What happened to the two people carriers?” to which he replied “Never had them. Monies went elsewhere”.

  • Failure to disclose creditors (Count 8) On 17 April 2007 Mr Patten was adjudged bankrupt upon a petition presented by HM Commissioners of Customs & Excise.

On 20 June 2007 the Official Receiver’s Office received a telephone call from Mr Y who explained that he was a creditor of Mr Patten and owed £45,000. Mr Y produced a copy of a Judgment dated 16 August 2006 for the sum of £43,885.00 and copies of two records of examination for Mr Patten.

Mr Patten eventually attended upon the Insolvency Examiner on 11 September 2007 with his completed PIQB. At question 13.1 Mr Patten was asked to list his creditors, however he did not complete this question. In the interview Mr Patten stated that he would drop the list of creditors in on 12 September 2007.

By 25 September 2007 no list of creditors had been received from Mr Patten therefore the Insolvency Examiner wrote to Mr Patten requesting the list, together with his accounting records for the last two years of trading. On 1 October 2007 a handwritten list headed “From T PATTEN” was received and it detailed seven creditors namely VAT, Inland Revenue, HSBC Bank, two individuals, Abbacus Self Drive and Connelys Garage. Absent from the list of creditors were individuals (referred to here as ‘Mr Z’ and Mr Y who were owed £96,581 and £43,885 respectively.

  • Forgery of documents (Counts 9 to 11) On 27 April 2008 the Insolvency Examiner received an email from Mr X regarding letters that were given to Mr Z by Mr Patten that had purportedly come from the Official Receiver’s office. The Insolvency Examiner received a faxed copy of a letter dated 25 March 2008. The signature on the letter is confirmed as the Insolvency Examiner’s signature however the handwritten date and content of the letter is not in the Insolvency Examiner’s handwriting.

On 25 June 2008 a letter was received from Mr Z which amongst other things enclosed

i. A copy of a purported Court Application Notice dated 8 May 2008 showing the Claimant as Mr Patten and the Defendant as someone we will refer to as ‘MW’. The Notice was stamped by Bournemouth County Court and endorsed with the claim number 6BH01923-HIG23634GA.

ii. An undated letter on the Official Receiver’s letterhead addressed to Mr Patten. The content of the letters refers to an offer from ’MW’ of £102,000 being unacceptable and a Court date of 8 April 2008.

Similar to the letter dated 25 March 2008, the Insolvency Examiner has confirmed that the signature on the undated letter is his but the handwritten content is not in his handwriting and he knows nothing about the letter.

The Insolvency Examiner made enquiries with Bournemouth County Court in respect of the Court Application Notice; the Court confirmed that the claim number was genuine but related to a matter being brought against Mr Patten’s domestic partner, (‘Ms X’), by an individual (‘MW’), as opposed to Mr Patten being the Claimant.

The purpose of the three forged documents was to stop Mr Z from making a claim against Mr Patten in his bankruptcy for the outstanding money and the four vehicles that had been repossessed by the finance company.

Offences: Counts copied from the indictment

COUNT 5

Statement of Offence

OBTAINING A MONEY TRANSFER BY DECEPTION, contrary to section 15(A) of the Theft Act 1968.

Particulars of Offence

Terrence Robin PATTEN, between 15 April 2005 and 21 April 2005 dishonestly obtained for himself a money transfer in the sum of £16,000 from Mr X by deception, namely by falsely representing Mr X that he would be using the money to purchase a Mercedes Viano vehicle from the JCT 600 car dealership in Sheffield

COUNT 6

Statement of Offence

OBTAINING PROPERTY BY DECEPTION, contrary to section 15 of the Theft Act 1968.

Particulars of Offence

Terrence Robin PATTEN, on 13 June 2005 dishonestly obtained from Mr Y £10,000 in cash with the intention of permanently depriving Mr Y thereof by deception, namely by falsely representing to Mr Y that he would be using the money to purchase a Mercedes people carrier

COUNT 7

Statement of Offence

OBTAINING PROPERTY BY DECEPTION, contrary to section 15 of the Theft Act 1968.

Particulars of Offence

Terrence Robin PATTEN, between 20 July 2005 and 27 July 2005 dishonestly obtained from Mr Y £12,500 in cash with the intention of permanently depriving Mr Y thereof by deception, namely by falsely representing to Mr Y that he would be using the money to purchase a second Mercedes people carrier

COUNT 8

Statement of Offence

BANKRUPT CONCEALING DEBT, contrary to sections 354(1)(b) and 350(6) of the Insolvency Act 1986.

Particulars of Offence

Terrence Robin PATTEN, between 10 September 2007 and 1 October 2007, being a bankrupt, concealed two debts of £96,581 and £43,885 which was due from himself to Mr Z and Mr Y.

COUNT 9

Statement of Offence

FORGERY, contrary to sections 1 and 6 of the Forgery and Counterfeiting Act 1981

Particulars of Offence

Terrence Robin PATTEN, between 20 March 2008 and 20 May 2008, made an instrument namely a handwritten letter dated 25 March 2008 from the Official Receiver’s office cancelling his appointment, which was false in that it purported to be from the Official Receiver’s office when it was not, with the intention that he would use it to induce Mr Z to accept it as genuine and by reason of so accepting it do some act to his own prejudice

COUNT 10

Statement of Offence

FORGERY, contrary to sections 1 and 6 of the Forgery and Counterfeiting Act 1981

Particulars of Offence

Terrence Robin PATTEN, between 20 March 2008 and 20 May 2008, made an instrument namely a handwritten letter undated from the Official Receiver’s office rejecting a settlement offer of £102,000 from ‘MW’ which was false in that it purported to be from the Official Receiver’s office when it was not, with the intention that he would use it to induce Mr Z to accept it as genuine and by reason of so accepting it do some act to his own prejudice

COUNT 11

Statement of Offence

FORGERY, contrary to sections 1 and 6 of the Forgery and Counterfeiting Act 1981

Particulars of Offence

Terrence Robin PATTEN, between 20 March 2008 and 20 May 2008, made an instrument namely a Court Application Notice dated 8 May 2008 in which he was shown as the Claimant and MW was the Defendant, which was false in that MW was the true Claimant and Mr Patten’s partner was the Defendant, with the intention that he would use it to induce Mr Z to accept it as genuine and by reason of so accepting it do some act to his own prejudice.

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 from:

https://www.gov.uk/government/organisations/insolvency-service

BIS’ mission is to build a Dynamic and Competitive UK economy, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. We investigate and prosecute a range of offences, primarily relating to personal or company insolvencies. Further information about the work of the Criminal Investigations and Prosecutions team is available at http://www.bis.gov.uk/policies/business-law/criminal-investigations

Media enquiries only should be directed to: Kathryn Montague, Media & Campaigns Manager on 0207 674 6910 or Ade Daramy, Media Manager on 0207 596 6187.

You can now subscribe to get e-mail alerts from the Insolvency Service. To subscribe, go to our website www.bis.gov.uk/insolvency and you will see a button to “sign up for email alerts and newsletters”, or click on the following link: https://public.govdelivery.com/accounts/UKBIS/subscriber/new.

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Contact Information

Ade Daramy Phone: 020 7596 6187

Email: ade.daramy@insolvency.gsi.gov.uk

NameKathryn Montague Phone: 0207 674 6910

Email: kathryn.montague@insolvency.gsi.gov.uk

Published 3 July 2014