A Glenorchy man has pleaded guilty to two charges of managing a company whilst being an undischarged bankrupt.
Tim Brownie, 50, was sentenced to 100 hours’ community work in the Invercargill District Court last week.
The charges were brought by the national enforcement unit of the Ministry of Economic Development, under the Insolvency Act 2006.
Under the Act, a bankrupt can’t be involved in managing a company.
The offence – managing a company without the consent of the Official Assignee or High Court – carries a maximum two years’ imprisonment.
The case was originally set down for a defended hearing this week before he pleaded guilty.
Brownie was adjudicated bankrupt in April 2009.
However – according to a summary of facts released to Mountain Scene by the Ministry of Economic Development – Brownie continued to purportedly run both the Glenorchy Holiday Park and Glenorchy Hotel.
The summary of facts states he was guarantor for the Glenorchy Holiday Park lease, while his partner owned the Glenorchy Hotel business.
The summary of facts then gives examples of Brownie managing both businesses after his bankruptcy.
In June 2009, he allegedly signed himself as the employer when making an employee redundant.
In July 2010, he informed a constable, while being processed for drink-driving, that he was the manager of the Glenorchy Hotel.
“As the constable began to fill out the defendant’s occupation on the second procedure sheet he asked her to change it to supervisor at the Glenorchy Hotel,” the summary of facts says.
A month later, he allegedly told a probation officer that he’d been employed for two years as the Glenorchy Hotel’s company manager.
Brownie also asked if he could serve his drink-driving home detention sentence at the hotel as he was an integral part of running the business.
“He told the probation officer that he did not think his partner was capable of managing the business and dealing with all the things that he dealt with, including dealing with staff and financial matters.”
Mountain Scene was unable to contact Brownie yesterday.
Back in June, 2009, Mountain Scene revealed Brownie’s bankruptcy had left a Queenstown church out of pocket by $72,000.
The Anglican Church Earl Street Charitable Trust wrote off the debt – its chairman Mark Taylor said Brownie had leased offices in a new trust building in 2007 and the trust had loaned him $55,000 for a fitout. Brownie failed to make a payment on the rent or fitout loan.