The court hearing of an Australian bankruptcy trustee who may need to explain missing funds has been adjourned without ceremony to August 2024.
Proceedings are before the Federal Court concerning former bankruptcy trustee Paul Leroy. The Inspector-General continues to say that his “investigation is ongoing and further details will be provided at an appropriate time”: Trustee deregistered for failure to meet bankruptcy act standards | Australian Financial Security Authority (afsa.gov.au)
The Federal Court adjourned what was an allocated case management hearing concerning Mr Leroy for 14 June to 9 August 2024 at 9.30am. No reasons were given but there may be difficulties in even locating the trustee and serving him with court process. Orders for substituted service had earlier been made, including by way of SMS, WhatsApp and email, and for service overseas: VID70/2024.
While defalcations, as is alleged in this case, will occur, and depending on any findings by the Court, it can be a useful exercise to look back and see how or to what extent the [co-]regulatory network oversighting insolvency practitioners that exists in Australia operated in this case – through the government regulator – AFSA, the industry bodies, the courts, the creditors, and the accountants and lawyers, each having greater or lesser roles.
In context, registered trustees administered more than $290 million in receipts in 2022–23, and over $287 million in payments.
This matter and that unique network is explained in my earlier post: “Thousands and thousands of pounds have been lost …” – Murrays Legal
