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Bankrupt uses £1m of investors’ money to renovate home

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An investigation by the Insolvency Service has found a bankrupt man used over £1m of money supposed to be invested on behalf of clients for property renovations and gambling.

Between November 2011 and June 2012, Robert Hiom obtained a total of £1,065,000 by false representation.

The Insolvency Service found over half the amount, £504,463, was used to buy a property in the joint names of Hiom and a member of his family.

The rest of the money was used to renovate the property, to gamble and to repay creditors. It was also spent on holidays, business class flights and general spending.

Only one repayment of £18,000 was made to third parties.

Hiom was made bankrupt in February 2014, and a bankruptcy restrictions undertaking has been accepted from Hiom for 14 years.

This means he has to disclose his bankrupt status if he wishes to get credit of more than £500, disclose his status if he carries on business in a different name and cannot act as a company director without a court’s permission.

Individuals are normally discharged from these bankruptcy restrictions after 12 months.

Official Receiver Justin Dionne says: “The duration of the bankruptcy restrictions undertaking against Mr Hiom reflects the severity of his misconduct, in that he used substantial third parties money to fund a luxury lifestyle.”

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Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. Confiscate the house then.

  2. “____________”

  3. You cant do that Julian, that would imply, the law breakers, bad and corrupt have no rights !………. go figure that !

    The FSCS have endless wealth paid for by the good ! (who don’t have a say in the matter)

  4. This doesn’t really read as a bankruptcy matter, more a fraud. Confiscate the property and prosecute, surely? There’s no mention of any of that in the article…

  5. Am I missing something here? shouldn’t he be in prison?

  6. Andy has made the point – what isn’t he doing ‘porridge’?

  7. The majority of the investors money was used for his own purpose therefore-its fraud, its a crime – its Prison
    —next—-

  8. Yes should definitely be in prison! People get prosecuted for stealing food from supermarkets.

  9. DH …. that would imply, the law breakers, bad and corrupt have no rights.
    People like this give up their rights when they decide to commit fraud.. What kind of message does this send to other prospective fraudsters ? Lets all go and collect £1m each from elderly investors and spend it on our houses knowing full well we dont have to pay it back ….. I dont think so as we are law abiding and have a conscience. Get a grip DH, if i had my way he would have his house sold and thrown out on the street after a stiff period in prison…

    • Sorry Gwyn, agree 100%, I was of course trying (unsuccessfully) to be ironic !

      People like this should loose their or any rights they may have had, locked up and property confiscated to repay there debt !

      However (as I was trying to highlight) all to often we see the rights of the bad over ride those of the victim or good !

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