A former horse trainer has been sentenced to five months home detention after he was convicted of providing misleading
statements and hiding crucial information from the Official Assignee of New Zealand when he applied for self-adjudicated
bankruptcy through the Insolvency and Trustee Service (ITS), a business unit of the Ministry of Business, Innovation and
Employment.
Mitchell Paul Kerr, a former harness trainer whose licence was cancelled by the Judicial Control Authority for Racing,
had concealed crucial details such as his bank accounts for gambling when he filed for bankruptcy with ITS. Between 3
April 2018 and 23 November 2020, Mr Kerr gambled $2.055 million via the online gambling website Ladbrokes using six
banks that he did not disclose.
Any person who has been adjudicated bankrupt is not permitted to be involved in the management of a business while still
bankrupt unless permission to do so has been sought from the Official Assignee. Likewise, it is also an offence for an
individual to contribute to their bankruptcy by gambling.
Fully aware of the obligations and responsibilities he had during his bankruptcy, Mr Kerr became involved in the
management of his business, Mitch Kerr Racing, without obtaining approval from either the ITS or the Court.
Also, while still bankrupt, Mr Kerr applied to the Ministry for Social Development between 9 August 2021 and 9 December
2021, declaring himself as ‘Self-employed/Contractor (Sole Trader)’ on his application. As a result, he received
COVID-19 wage subsidies amounting to $9,600.
It is also an offence to be self-employed whilst adjudicated bankrupt without the permission of the Official Assignee.
Commenting on the case, acting National Manager - Criminal Proceeds Integrity and Enforcement, Vanessa Cook said:
“Being able to self-initiate the bankruptcy process helps individuals to honestly resolve their financial situations and
resume their normal economic lives. This is a fair and effective process that helps to protect the public from financial
risk.”
“Mr Kerr wilfully chose to mislead and withhold critical information from the Official Assignee / ITS when he entered
bankruptcy. Fully aware that he was prohibited from being involved in managing a business without seeking or obtaining
permission from the Official Assignee or the Court, he continued to manage his business -- Mitch Kerr Racing.”
“MBIE’s Integrity and Enforcement team (IET) will not hesitate to investigate and prosecute individuals who attempt to
take advantage of the system by misleading and suppressing facts.”
“Mr Kerr’s actions meant that enforcement action had to be taken by MBIE’s IET team in order to protect the public from
further financial risk.”Details of the case:
Following investigations by MBIE’s Integrity and Enforcement Team, Mr Kerr was found to have breached the Insolvency Act
in the following manner:
Between 3 April 2018 and 23 November 2020: Gambled $2.055 million at online gambling website Ladbrokes. During this period, Mr Kerr paid from six bank accounts that he did not disclose when he applied for self-imposed
bankruptcy.
25 March 2021: Applied for self-imposed bankruptcy to MBIE’s Insolvency and Trustee Service.
30 March 2021: Mr Kerr was declared bankrupt, and a letter was sent to him outlining what he could and couldn’t do such as taking part
in managing or controlling any business.
Between 20 April 2021 and 14 June 2022: While being bankrupt, Mr Kerr continued to be involved in the management of his business, Mitch Kerr Racing.
Between 9 August 2021 and 9 December 2021: The Ministry of Social Development (MSD) introduced the COVID-19 Wage Subsidies to help businesses pay employees and
protect jobs affected by COVID-19 alert level changes. Mr Kerr made eight applications during this period declaring
himself as ‘Self-employed/Contractor (Sole Trader) Application’ and received $9,600 from MSD.