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 had 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 an acrimonious divorce.
To address this, we’s specialist contentious insolvency team conducted a thorough investigation into the bankrupt’s financial affairs. This included reviewing banking records from various foreign and domestic banks, solicitors’ and accountants’ records, land registry records, and other relevant sources. Collaborating with a corporate intelligence specialist, the team scrutinized the bankrupt’s conduct and his relationships, particularly with his ex-wife and a new partner. Their investigation uncovered that the bankrupt's claims of financial hardship were part of a deliberate strategy to conceal assets from his trustee. They identified a complex network of trusts, offshore accounts, and third parties that facilitated the dissipation of his estate in anticipation of his tax debts 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.