Bankruptcy restriction for man who gambled money borrowed from family

Leicester based Shared Dayaram Patel may be handed an 11 year bankruptcy restriction from for producing false representations to acquire loan funds of 390,000.

This follows an exploration with the Insolvency Service, which found representations were made to family and friends for getting money, which has been for online spread betting and then to fund his lifestyle.

Mr Patel entered a 11 year bankruptcy restrictions’ undertaking on 18 December 2017, by way of the restrictions put down in insolvency law that a bankrupt is controlled by until these are discharged from bankruptcy (normally Twelve months) until 2028.

Between 2013 and 2017, Mr Patel made false representations to family and friends for getting loan funds of 390,000, on the grounds that the funds may be used to be a venture investment. He used 238,451 of such funds to invest in online spread betting, with the most of the remaining funds used to advance Mr Patel’s lifestyle. Mr Patel’s actions directly resulted in him becoming insolvent with total liabilities of 403,753.

Mr Patel was declared bankrupt on 26 July 2017 by using a absence of 386,238. Mr Patel was interviewed within the Official Receiver’s office after which he stated that around December 2012 he soon began online spread betting and initially used his savings to fund this. However once his money ran out he obtained funds from friends and used the cash he received to go on gambling.

The loans were protected by formal agreements which stated that Mr Patel would contain the investment funds right through Yr when the investor couldn’t survive in a position to withdraw the main town invested.

Mr Patel advised friends and family that your funds may be used as a venture investment but he was basically utilizing the funds to fund his spread betting and, from June 2015 onwards, to finance his living expenses with a very small amount utilized to settle some of the lenders.

In January 2017 when the money had been exhausted he ceased gambling and sought advice regarding his financial situation following which in July 2017 he earned her own application for bankruptcy.

Commenting around the bankruptcy restriction, Gerard O’Hare, the state run Receiver on the Insolvency Service said: “Where the bankrupt introduced undue risks with creditors’ money, he should not expect to do so without repercussions, especially when others suffer financial loss due to this fact.

“Bankrupties restriction of these circumstances delivers to give creditors with a degree of protection, and this will also behave as a deterrent to your bankrupt don’t act in the same way sometime soon.”

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