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|Ten year Bankruptcy Restriction Order made|
|Friday, 04 November 2016|
Scotland’s insolvency service, Accountant in Bankruptcy (AiB), has obtained a 10-year Bankruptcy Restrictions Order (BRO) for a debtor due to misconduct prior to her bankruptcy.
The BRO was made against Karen Reid aka Cromar aka Taylor, 21 St Martin Avenue, Dundee, DD3 0RN on 12 October 2016. The debtor was personally served with the order on 3 November 2016.
Ms Reid was made bankrupt on 8 September 2015, following the submission of a bankruptcy petition to Dundee Sheriff Court by her former employer IAS (Dundee). She was made bankrupt due to her failure to pay the amount specified in a court decree as payment due to her ex-employer. of £64,832.07, which consisted of £53,000 plus interest.
Ms Reid had already been convicted of embezzlement of funds from her former employer and given a Community Payback Order at Dundee Sheriff Court on 18 December 2014 and ordered to pay £5,000 compensation to IAS (Dundee).
AiB submitted a BRO application to Dundee Sheriff Court as Ms Reid had committed a fraudulent breach of trust when she embezzled the funds for which she has been convicted and this act of dishonesty had directly led to her bankruptcy.
Ms Reid made no representation to Dundee Sheriff Court regarding the BRO application and Sheriff Collins made a BRO against her for a period of 10 years.
Richard Dennis, Chief Executive of Accountant in Bankruptcy, said: “Ms Reid held a position of trust with her former employers, which she breached by carrying out this act of dishonesty.
“The money she embezzled was used to live an extravagant lifestyle, while the company who had entrusted her with their accounts struggled to pay their staff due to insufficient funds left in the company bank account.
“The 10 year restriction period imposed by this BRO reflects the seriousness of this case.
"The Accountant in Bankruptcy will investigate and apply for a BRO where it can be proven a bankrupt individual has committed an act of fraud such as embezzlement or carried out any behaviour considered grounds for a BRO.”
The details of this BRO are now recorded in the public Register of Insolvencies. The Register of Insolvencies can be accessed by any person, free of charge, who wishes to check if an individual has been made bankrupt or is subject to Bankruptcy Restrictions.
Following a change to bankruptcy legislation from 1 April 2015, The Accountant in Bankruptcy can now make BROs with restriction periods of between two and five years. Sheriffs will continue to make BROs if the period of restrictions is to be between five and 15 years.
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