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.”