Simon Chalk, a property developer (trading as Woodvale), ocean rower, and night-club owner has received a five-year Bankruptcy Restrictions Order at Torquay and Newton Abbot County Court following an investigation by The Insolvency Service.
The court heard, and agreed, that Chalk had dishonestly obtained a secured loan of over £200,000 had been involved in the management of a limited company while bankrupt and had failed to declare an asset worth £45,000 to the Official Receiver.
The allegations made out in court included that on 28 April 2008, whilst insolvent, Simon Roger Chalk obtained £229,975 by providing false information to obtain a secured loan on his property when he knew that HM Land Registry (HMLR) had failed to register a previous charge over the property. Chalk failed to pay the loan proceeds to the first charge holder, causing a loss to HMLR of £300,000. In comparison Chalk paid at least £74,110 of the monies to an associated company.
It was also alleged that from 6 January 2009 Chalk acted directly and indirectly in the management of a limited company, without the permission of a court, and in doing so breached his Bankruptcy Order.
Chalk was also alleged to have failed to disclose an asset of £45,000 in his proposals for an Individual Voluntary Arrangement, which were accepted by his creditors on 22 January 2007. After the Bankruptcy Order was made against him on 8 December 2008, Chalk failed to disclose the same asset to the Official Receiver.
Stephen Speed, chief executive of The Insolvency Service, said: “Mr Chalk wanted to benefit from the debt relief arrangements offered by the insolvency regime but was not prepared to accept the restrictions all bankrupts must abide by as part of that arrangement. The Bankruptcy Restrictions Order Mr Chalk is now subject to is a serious sanction and breaching it is a criminal offence which can result in a custodial sentence.””
