Moral Dilema

Moral Dilema

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We had a Client, quite a dodgy one, who we split company with in relatively bad terms (he owed us fee income). He moved to another accountants (whom we told there were money problems) and they oversaw the Company going into liquidation. It comes to pass that the individual has also gone bankrupt. I then notice that the individual had transferred a sum of money into the account of another of our Clients (who we still work with and is friendly with this guy) - at a guess, less than a week before bankruptcy. The amount is less than £5k. I have not 'officially' been told of either the liquidation or Bankruptcy. Your thoughts are appreciated!

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Euan's picture
By Euan MacLennan
25th Jul 2013 16:37

Ask the client

... for whom you still act and from whose bank statements you presumably identified the receipt of the money, what he thinks the payment was for and if he believes he is just holding the money on behalf of his friend, to be returned when he asks for it.

What is it that concerns you?  A requirement to report under MLR?

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By Sheepy306
25th Jul 2013 18:20

Debt recovery
Euan's advice seems good. And then get in touch with the liquidator (it's public information from Companies House) to register your Interest as a creditor of the company, and potentially advise them of the £5k (although I suspect the liquidator will investigate this last minute transaction regardless). Then contact official receiver regarding his personal bankruptcy.

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By Tosie
25th Jul 2013 21:49

Re Sheepy306

Sadly one cannot pass on to third parties information obtained through our relationships with our current clients.

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