Professional Services
FRP Advisory
Full Credential Description
One of we’s Partners was appointed as Trustee in bankruptcy over a former high-net-worth individual who had been a successful trader but had accumulated significant debts to HMRC due to aggressive tax avoidance schemes. Despite the belief that he possessed substantial assets prior to his bankruptcy and a recent divorce, he declared nil assets in his bankruptcy estate, claiming that his financial situation was a result of the acrimonious divorce.
To address this, we's specialist contentious insolvency team undertook a thorough investigation of the bankrupt’s financial affairs. This included analyzing banking records from various foreign and domestic banks, solicitors’ and accountants’ records, land registry records, and other pertinent information to construct a detailed financial history and trace significant property transactions. Collaborating with a corporate intelligence specialist, the team scrutinized the bankrupt’s relationships and conduct, revealing that his claims of financial hardship were part of a deliberate strategy to conceal assets from his trustee. The investigation uncovered a complex network of trusts, offshore accounts, and third parties that facilitated the dissipation of his estate in anticipation of his tax liabilities and bankruptcy.
The investigation's findings led to a strategic recovery campaign, resulting in a monetary settlement with the bankrupt’s ex-wife concerning the transfer of multiple properties before the bankruptcy. Additionally, the team secured freezing injunctions and a judgment against his new partner for undervalued transactions involving assets and funds transferred to her. These actions enabled the recovery of funds, allowing for a substantial dividend payment to the bankrupt’s creditors.