Bankruptcy restrictions for gambler who squandered friend’s money
Barnet resident who persuaded friend to invest £280k in property before squandering it on gambling has accepted 12 years of additional bankruptcy restrictions.
In July 2017, Shahriar Farrokhzadeh (42), from Barnet, North London, asked an associate to invest £280,000 in a property deal with him. The money was to enable Shahriar Farrokhzadeh to buy a property worth £2.3 million at a discounted price before selling it on for a profit.
Shahriar Farrokhzadeh promised his friend more than £60,000 profit in return for the investment and that he would be repaid in under two months.
The associate transferred £280,000 and in return, Shahriar Farrokhzadeh signed a promissory note for £343,000, covering the amount invested and projected profit returns, along with promises of being repaid in full by the end of August.
Over the following three months, however, Shahriar Farrokhzadeh continually delayed paying back the investment while informing his associate that the purchase and sale of the property had been completed.
In reality, Shahriar Farrokhzadeh did not purchase the property and instead squandered the £280,000 on gambling and other lifestyle expenses.
And while delaying repaying the investment from his associate, Shahriar Farrokhzadeh tried to elicit additional funds from him saying he had another investment opportunity.
Following a petition by one of Shahriar Farrokhzadeh’s creditors, he was ordered bankrupt by the courts in April 2019 with liabilities of just under £4 million.
Bankruptcy restrictions are usually lifted after 12 months but due to the seriousness of Shahriar Farrokhzadeh’s actions, the Official Receiver pursued extended restrictions to prevent him causing any further harm to other creditors.
The Secretary of State accepted a bankruptcy restriction undertaking from Shahriar Farrokhzadeh on 19 September 2019. For 12 years, he is restricted from borrowing more than £500 without disclosing his bankrupt status, or act as a company director without the court’s permission, among other restrictions.
Alan Draycott, Deputy Official Receiver, said:
Shahriar Farrokhzadeh secured thousands of pounds from his friend in good faith but frittered it away. In interviews with the Official Receiver, he couldn’t even recall exactly what he had done with all the money.
12 years of bankruptcy restrictions is a significant amount of time and not only severely curtails Shahriar Farrokhzadeh’s activities but protects other creditors from his profligacy.
Notes to editors
Shahriar Farrokhzadeh is of Barnet, North London, and his date of birth is May 1977. Details of his Bankruptcy Restrictions Undertaking are available on the Individual Insolvency Register.
Bankruptcy restrictions are wide ranging. The effects are the same whether you are subject to a bankruptcy restrictions order or to an undertaking. Guidance on the main statutory consequences flowing from a bankruptcy restrictions order or undertaking.
Information about the work of the Insolvency Service, and how to complain about financial misconduct.
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