Brought to justice
Well-known horse trainer Mitchell Kerr failed to disclose over NZ$2m (US$1.2m) in gambling expenditure when declaring bankruptcy and will now serve five months in home detention. He bet on dog and horse races, with the actual losses reaching approximately NZ$950,000 (US$564,775).
buried important information and misled officials
The Christchurch District Court found that Kerr buried important information and misled officials when he submitted a self-adjudicated bankruptcy application to the Official Assignee of New Zealand. This body is in charge of processing liquidations and bankruptcies by bringing together assets and selling them to try to compensate creditors.
Numerous failings
Kerr failed to be transparent about bank accounts that he used for gambling purposes; a subsequent investigation by Ministry of Business, Innovation and Employment (MBIE) officials uncovered the web of lies.
It is a criminal offense “for an individual to contribute to their bankruptcy by gambling.”
They found that Kerry gambled NZ$2.055m (US$1.2m) over a period of about 19 months through an online Ladbrokes account using funds from six undisclosed bank accounts. It is a criminal offense “for an individual to contribute to their bankruptcy by gambling.”
He also breached the rules about not controlling any business interests when in bankruptcy, as Kerr continued managing his Mitch Kerr Racing business. He even received NZ$9,600 (US$5,707) in COVID-19 wage subsidy payments after listing himself as a sole trader in eight separate applications. In another violation, Kerr claimed that his annual income was NZ$40,000 (US$23,780) when it was actually closer to NZ$228,000 (US$135,546) over the previous two years.
No hiding
A spokesperson for the integrity and enforcement division of the MBIE explained that the country’s bankruptcy process aims to help people front up and honestly fix their financial situations. She said that Kerr decided to “mislead and withhold critical information” during the process and that this case acts as a warning for anyone else who thinks that they can hoodwink the system by not revealing the full truth.
Kerr has a track record of dishonest dealings. He is banned for life from harness racing for conning horse owners, leading to charges of forgery and fraud. In one case he duped someone into paying NZ$40,000 (US$23,780) for a made-up horse before charging him another NZ$26,000 (US$15,457) in fees. This led to him serving seven months in home detention.
