Mr Gregory John Donaldson, aka Gregory Donaldson and Greig Donaldson of Murray Bridge, South Australia, was convicted and found guilty of two bankruptcy offences, disposing of property (shares worth $86,000), and making a declaration he knew to be false.
On 28 July 2014, Mr Donaldson was made bankrupt after he failed to repay $1.2 million to Westpac. Ten days later, he transferred four units of shares (valued at over $86,000 in total) into his wife’s name. The shares were for Wellington Lake Marina Pty Ltd trading as Captain Proud Paddle Boat Cruises, a company that Mr Donaldson had been Director of until 28 June 2014. Upon his resignation, Mrs Donaldson became Director.
The main asset of the company was a paddle boat with the name “Captain Proud” which was registered to Captain Proud Paddle Boat Cruises. The boat had been registered to Mr Donaldson since 2006, both to him personally or via a company that he owned.
Mr Donaldson failed to declare the transfer of his four shares in the company to his wife and that he was the Director of the company in his Statement of Affairs form. This is an offence under the Bankruptcy Act, as he was effectively hiding potential sources of repayment from his trustee.
On 9 October 2018, Mr Donaldson was convicted and released without sentence under section 20(1)(a) of the Crimes Act 1914 on a $5000 recognizance to be of good behaviour for two years. Mr Donaldson was also ordered to pay $302.75 court costs and $79.70 disbursement costs.
The matter was prosecuted by the Office of the Commonwealth Director of Public Prosecutions on behalf of the Australian Financial Security Authority.
Key details:
- Mr Gregory John Donaldson, aka Gregory Donaldson, aka Greig Donaldson of Murray Bridge, South Australia, was convicted and found guilty in relation to offences of disposing of property and making a declaration knowing it to be false.
- On 20 June 2014, Westpac filed a Creditor’s Petition in relation to a judgment debt of over $1.2 million. On 28 July 2014, Mr Donaldson was made bankrupt by virtue of a Sequestration Order.
- On 30 June 2014 (ten days after Westpac filed a Creditor’s Petition), Mr Donaldson transferred his four units of shares in Wellington Lake Marina Pty Ltd trading as Captain Proud Paddle Boat Cruises (“the company”) to his wife for no consideration.
- Mrs Donaldson became the Sole Director of the Company upon Mr Donaldson’s resignation as the Director of the Company on 28 June 2014.
- The main asset of the Company was a Paddle Boat with the name “Captain Proud” which was registered to Mr Donaldson’s name until 16 February 2006 when it was transferred to a company where he and his wife were the Directors, Acres & All Pty Ltd (Deregistered). On 1 July 2013, the Paddle Boat was transferred to the company.
- According to the company’s financial statements, the company’s share was valued at approximately $21,626 per share at the time of transfer (four units of shares = $86,504).
- Mr Donaldson failed to declare the transfer of his four shares in the company to his wife for no consideration and that he was the Director of the company in his Statement of Affairs form.
- On 9 October 2018, Mr Donaldson was convicted and released without passing sentence under section 20(1)(a) of the Crimes Act 1914 on a recognizance in the amount of $5,000 and ordered to be of good behaviour for a period of 2 years. Mr Donaldson was also ordered to pay $302.75 court costs and $79.70 disbursement costs.
- The matter was prosecuted by the Office of the Commonwealth Director of Public Prosecutions on behalf of the Australian Financial Security Authority.
