THE case of Richard Carr is a warning of what can happen if you attempt to beat the system, the Insolvency Service has said.

Anyone made bankrupt and subsequently found to have put money or assets beyond the reach of creditors can expect similar treatment, it warned.

Tony Ryan, Bournemouth’s Official Receiver, said Mr Carr’s decision to stash away £500,000 after his businesses went into administration – as reported in the Daily Echo yesterday – could have seen the property developer and nightclub owner end up in court.

“We prepared an application to court to have the alleged conduct considered. However, Mr Carr agreed to sign an undertaking as an alternative to going to court,” he said.

“His trustee in bankruptcy continues to seek recoveries for the benefit of his creditors.

“While most bankruptcies don’t result in bankruptcy restriction applications by the Insolvency Service, if people made bankrupt haven’t acted appropriately we will investigate and take action where necessary.”

The investigation by the Official Receiver discovered that Mr Carr transferred £100,000 to a US bank account, paid £98,563 from the sale of a jointly owned property into the bank account of a relative’s husband and paid £169,636 from the sale of another property into the same bank account.

He also withdrew £150,000 in cash from his UK bank account.

His creditors received none of this money and were owed a total of more than £8 million at the time he was made bankrupt.

As a result of the investigation, Mr Carr signed a 10-year undertaking which restricts him from acting as a company director without the permission of the court and forces him to disclose his bankruptcy restriction when applying for credit of £500 or more.

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