The Paul Leroy former bankruptcy trustee “millions of dollars in missing funds” matter in the Federal Court continues, and continues, through so many adjourned court listings since February 2024 when proceedings were commenced against him.
It may be that he can’t be located ….
On 18 September, Justice O’Callaghan ordered that yet another case management hearing, listed for 19 September, be adjourned, to 17 October 2025.
A court data base search shows no application for joinder or other document having been filed.
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The Federal Court matter of Paul Leroy, former bankruptcy trustee, continues, and continues, through what is now 20 adjourned court listings.
It was commenced on 2 February 2024 by the trustees of the estate from which funds were allegedly taken. On 30 May 2025 Justice O’Callaghan further extended the date for the trustees to bring an application for the joinder of “another party” to the proceeding to 18 July 2025, with the matter back before the court on 15 August.
On 14 August 2025, the date for filing that application for joinder was extended again, to 12 September 2025 with the matter further adjourned to 19 September.
Stay tuned ……
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The Paul Leroy former bankruptcy trustee “millions of missing funds” matter in the Federal Court continues, and continues, through 17 adjourned court listings.
Leroy
It was commenced on 2 February 2024 by the trustees of the estate from which funds were allegedly taken.
On 30 May 2025 Justice O’Callaghan further extended the date for the trustees to bring an application for the joinder of “another party” to the proceeding to 18 July 2025, with the matter back before the court on 15 August.[1]
On 21 July 2025, the Judge extended that time to 6 August 2025.
There has been no court appearance of Mr Leroy.
As much as we have from the bankruptcy regulator, AFSA, it has
“stepped up [its] enforcement action, with noteworthy results including the deregistration of trustee Paul Leroy 17 days after his employer reported allegations of misconduct to us”.[2]
Its Regulatory Action Statement for 2024-2025 says that AFSA
“will take an intelligence informed and data driven approach to detect, deter and disrupt untrustworthy advisors and insolvency practitioners who seek to gain a financial or other type of advantage for themselves by breaching the trust vested in them and their statutory duties. This will be complemented by our commitment to promptly take disciplinary and enforcement action where warranted”.
While the matter brought by the trustees continues, it will be interesting to see how Mr Leroy apparently avoided AFSA’s “intelligence informed and data driven approach”, and the blanket co-regulatory structure for practitioner regulation adopted under the Insolvency Law Reform Act 2016.[3]
There may be no criticism of AFSA in relation to the missing moneys, but the circumstances should inform AFSA’s, and ASIC’s, regulatory approach, and that of the industry bodies, and the law. There is also the question of who knew of his alleged actions.
Amos
While Leroy appears to have, allegedly, acted quickly, former liquidator Mr Peter Amos’ defalcations extended over about 6 years. With no sentencing reasons issued by the NSW District Court, we are yet to know the details of his offending and from ASIC how he avoided its regulation for 6 years.
Moreso in his case, there should be inquiries into whether anyone knew of his misconduct over that 6 year period, as to criminal law liability and professional misconduct.[4]
Regulation
While regulation of professional misconduct cannot be absolute in its oversight, in the case of an industry whose public standing can come under close scrutiny,[5] there needs to be transparency when misconduct occurs.
If not, so be it.
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[1] File details – applications for file VID70/2024
[2] AFSA Chief Executive speech at the 2024 Financial Counselling Australia NSW Conference | Australian Financial Security Authority
[3] See Legal and Ethical Standards in Corporate Insolvency, E Streten, Routledge, 2024, ch 2, as to corporate insolvency. Generally, see Bodies everywhere — the role of professional bodies in regulating insolvency practitioners [2018] INSLB 94, Murray.
[4] NSW Crimes Act 1900, s 316 Concealing serious indictable offence. APES 110 Section 225 Responding to Non-Compliance with Laws and Regulations.
[5] See Legal and Ethical Standards in Corporate Insolvency, E Streten, ch 1.
