Stephen Flamer-Smith
Manager – Oracle Insolvency Services
A bankrupt husband and his wife find themselves in hot water over property disposal
In May 2021, the Australian Financial Security Authority (AFSA), reported that an accountant, along with a bankrupt husband and his wife, were under investigation for concealing and disposing of property before a bankruptcy under s. 266 (3) and s. 263 (1)(b)(iii) of the Bankruptcy Act 1966 (Act). At this time the trio, consisting of Sean Mauk and his wife Sally Mauk, along with their accountant, Charles Roborg-Sondergaard, had indicated that they intended to plead not guilty.
On 19 March 2024, the District court in Perth heard allegations that Mr. Mauk and his wife acted together to transfer Mr. Mauk’s interest in his deceased mother’s estate to his wife via a deed of arrangement, the funds being the value of $517,562, prior to the commencement of his bankruptcy in March 2018.
With respect to Mr. Mauk’s accountant, on 6 October 2021, there was a decision made by the Disciplinary Tribunal of Chartered Accountants Australia and New Zealand to suspend Mr. Roborg-Sondergaard on an interim basis pending further investigation and determination of the charges being laid against him by AFSA. The charges against Mr. Roborg-Sondergaard were that he committed an offence or offences individually or by joint commission with the intent to defraud the creditors of his client.
Upon searching ASIC’s register, Mr. Roborg-Sondergaard’s accounting company, Roborg-Sondergaard Pty Ltd, is currently registered, so it appears that his suspension has been lifted. There have also not been any further reports regarding Mr. Roborg-Sondergaard’s involvement in the offences by AFSA, so it is assumed that at this stage, he has not been found guilty in this matter. At the time of investigating Mr. Roborg-Sondergaard’s involvement in the offences, AFSA deputy chief executive Gavin McCosker noted that “People cannot absolve themselves of wrongdoing by claiming to have acted on professional advice. Reducing harmful actions by those providing untrustworthy advice has been a key focus area for AFSA in recent years and will continue to be a priority in years to come.”
With respect to the sentencing of Mr. and Mrs. Mauk, the court found:
- Mauk guilty under s. 266 (3) of the Act, namely, that he disposed of property within 12 months of the presentation of his bankruptcy petition.
The maximum penalty for this offence is imprisonment for 5 years. However, Mr. Mauk was sentenced to 2 years and 10 months, to be released after serving 1 year and 5 months upon entering into a recognizance release order in the amount of $100 to be of good behaviour for the balance of the sentence, being 1 year and 5 months.
- Mauk guilty under s. 263 (1)(b)(iii) of the Act, namely, that she received property from a debtor who subsequently becomes a bankrupt or executes such an agreement or deed with intent to defraud, or to assist the bankrupt, defraud their creditors. The maximum penalty for this offence is imprisonment for 5 years. However, Mrs. Mauk as sentenced to 14 months, to be released after serving 7 months, upon entering into a recognizance release order in the amount of $100 to be of good behaviour for the balance of the sentence, being 7 months.
Following the sentencing of Mr. and Mrs. Mauk, AFSA National Manager for Education, Surveillance and Enforcement, Neville Matthew, said that AFSA’s taking action to deter bad behaviour is critical, and that AFSA is “committed to acting against misuse to protect trust and confidence in the personal insolvency system”.
