Former investment firm director receives 15-year bankruptcy restrictions for fraud
Andrew Paul Bird, a 60-year-old former investment firm director from Quarndon, Derbyshire, has been subjected to the maximum 15-year bankruptcy restrictions after being found guilty of defrauding investors. Mr Bird misled 13 individuals and couples into investing in a fraudulent scheme between 2011 and 2016, promising secure returns while exposing them to significant financial risks for his personal gain.
Mr Bird was first declared bankrupt in November 2016 and became subject to an interim Bankruptcy Restrictions Order (BRO) in January 2018. This order was put in place to prevent further harm while he awaited trial. On August 1, 2024, Mr Bird was sentenced to eight years in prison at Nottingham Crown Court for his fraudulent activities.
The Official Receiver’s investigation revealed that Mr Bird knowingly provided false information to investors. As a result, he signed an undertaking extending the bankruptcy restrictions until January 24, 2033. These restrictions prevent Mr Bird from acting as a company director, borrowing more than £500 without disclosing his status, and taking certain public roles, significantly curtailing his business activities.
The case offers valuable takeaways for both investors and small business owners. Here are the key lessons:
Due diligence is crucial:
If you are looking to invest, you should thoroughly investigate any investment opportunity before committing your funds. This includes verifying the legitimacy of the investment, the credibility of the individual or firm offering it, and understanding the associated risks.
Investing based on trust alone without adequate research opens you to considerable risk as this case shows.
Beware of too-good-to-be-true offers:
We all know that if it sounds too good to be true, it probably is. But when you are being offered promises of high returns, they can be hard to resist.
It is important to remember that promises of high returns with little to no risk are usually red flags that things are not all they seem. In Bird’s scheme, the investors were likely enticed by the prospect of secure and profitable investments and regretted it when they turned out to be fraudulent.
It is best for you to be sceptical of any such offers and seek independent financial advice.
Legal recourse and protections:
You do have legal protections and recourse available to you, so be aware of them. In the case of fraud, you should report it to authorities such as the Insolvency Service.
Bird’s conviction and subsequent bankruptcy restrictions demonstrate that fraudulent behaviour can lead to significant legal consequences, which can help to protect future potential victims