Tag Archives: Insolvency Service

Shona Manson’s response to my invitation to our meeting

This is what I wrote to Stephen Speed, the Chief Executive of the Insolvency Service:

Dear Mr Speed

This is to invite you or someone else in your department to a meeting that will take place tomorrow, Tuesday, between 2 and 4 in Committee Room 16 of the House of Commons. Whilst I don’t expect you to attend at such short notice, I thought you might want to send Shona Manson whom we’ve been in touch with, or somebody else we can work with.

My main reason for inviting you is your stance on punishing dishonesty and other unethical behaviour. To give you a feel for what to expect, I attach three documents pertaining to the meeting as well as the most scandalous bankruptcy we are aware of: Mr David Fabb. One of the judges involved said: “This bankruptcy order ought not have been made. But I am using my “judicial discretion” not to annul it.” How is that supposed to increase our confidence in your system and procedures, I wonder?

Our group has accumulated a vast amount of evidence and knowledge about slippages in the Courts that your Service seems to miss, when Bankruptcy Orders are issued based on false documents, forms and evidence.

And while I appreciate that you don’t deal with individual cases, we have accumulated summaries of many to demonstrate what we know. It would therefore help if you were to support us in our efforts to annul bankruptcy orders that we found to be legally invalid and thus null and void.

Dr Vincent Cable is quite aware of our group efforts. Hence I would appreciate your collaboration.

With many thanks in advance,

Sabine K McNeill
_________________

And here’s the answer that I got:

Dear Ms McNeill,

Thank you for your invitation of 24 January. Mr Speed has asked me to reply on his behalf, I apologise that I did not have an opportunity to do so in advance of the meeting last week.

The role of The Insolvency Service is to administer insolvent estates following orders of the court. Concerns members of the Forum have about the Court Service or the actions of the Judiciary are a matter for the Ministry of Justice and not The Insolvency Service.

Official receivers have neither the authority nor the resources to investigate or challenge documentation which has been considered by the court. If you have the evidence that bankruptcy orders were made on false documentation, forms and evidence then the correct route is for the individual to ask the court to annul the bankruptcy order. This is a matter between the individual, the petitioning creditor and the court.

There is an established review and appeal process for individuals who wish to challenge the findings of the court. Any party to proceedings who believes a judge has incorrectly applied the law or erred in the exercise of his / her discretion has a right of appeal to a higher court.

Yours sincerely,

Shona Manson

Email from Shona Manson

Dear Ms McNeill,

There is little I can add to our previous exchanges.

I am aware that your organisation is representing a number of individuals who believe that the courts should not have made bankruptcy orders against them. The correct way in which to deal with those issues is by way of appeal to a higher court.

I am also aware of issues raised by those individuals concerning the appointment of insolvency practitioners as trustees of their bankruptcy estates. The function of a trustee in bankruptcy, as set out in the insolvency legislation, is to get in, realise and distribute the bankrupt’s estate in accordance with the legislation. In doing so it is the duty of the insolvency practitioner to use his or her professional and commercial judgment to maximise the realisation of assets for the benefit of creditors. The insolvency practitioner acts under the supervision of the court, it is generally open to creditors, and debtors, to bring matters before the court where they believe their interests are being unfairly harmed.

If you consider the individuals you represent have been failed by the judicial system then this is a matter you should raise with the Ministry of Justice.

Every person who acts as an insolvency practitioner must be authorised to do so: either directly by the Secretary of State or by one of a number of Recognised Professional Bodies. The existence of a proper complaints procedure was one of the factors taken into account when the bodies were initially recognised to authorise practitioners, it is open to any party who is dissatisfied with the professional conduct of an insolvency practitioner to raise their concerns with the practitioner’s authorising body. If a complaint is made, the authorising body will consider whether professional misconduct has occurred, and whether sanctions should be applied.

The fees chargeable to a bankruptcy estate are set by Parliament. The remuneration of a trustee is largely dependent on the amount of work to be done in properly administering the proceedings. In large and complex cases, the work necessary to fulfil the trustees duties will be considerably greater and expenses correspondingly higher. Under the provisions of the current insolvency legislation, it is for the creditors’ committee (a representative body of the creditors) or the creditors in general meeting to approve the basis and level of remuneration. If you wish more information on the appointment, functions, powers and payment of trustees in bankruptcy, I would refer you to The Service’s publication “Trustees and Liquidators in Bankruptcies and Compulsory Liquidations” which is available from our website www.insolvency.gov.uk. Additional guidance on the remuneration of insolvency office holders can be found in Statement of Insolvency Practice 9 which is available from the web-site of the Association of Business Recover Professionals www.r3.org.uk.

The Office of Fair Trading (OFT) has recently published a study into the corporate insolvency market.  The study looked into the structure of the market and any features in the market which could result in harm, such as higher fees or lower recovery rates for certain groups of creditors.  The study is available at the following link: http://www.oft.gov.uk/shared_oft/reports/Insolvency/oft1245. The Government intends to publish a response to the OFT study during October, which will be placed on The Insolvency Service website.

As I understand money laundering this is the exchange of money or assets obtained criminally for money or other assets that are ‘clean’. I can see nothing in the proper administration of a bankruptcy estate, where a trustee realises the assets of the bankrupt which the legislation states form the bankruptcy estate and distributes funds to creditors, which constitutes money laundering. I would ask you to refrain from implying that I am committing criminal offences without providing any evidence to support your accusations. Had I any evidence within my direct knowledge which indicated a criminal act I would report this appropriately.

However, if you hold any evidence of any criminal activity then this is a matter you should report to the Police. Alternatively you may wish to contact the UK Financial Intelligence Unit of the Serious Organised Crime Unit with a view to submitting a Suspicious Activity Report. Further details are available from the web-site www.soca.gov.uk

Yours sincerely,

Shona Manson

Correspondence with Shona Manson, Insolvency Service

“We are alright. We do not accept what you are saying, let alone responsibility. We are doing the correct things. ”

This is the essence what Shona Manson wrote. Our email exchange is here.

The Insolvency Service responds on behalf of Vince Cable

Writing letters on behalf of an organisation tends to have more impact, for as an individual we are nobody in our “no logo culture”…

To enter into a process of communication with official bodies on behalf of groups of victims is a new co-creative art form. We better become good at it, as good as possibly possible! For one of the global elite leaders decries the “global political awakening” that we are part of. That’s one of our chances! A ‘kink’ in the firewalls around the establishment with its rule of money…

So we started with Dr. Vincent Cable on behalf of