PM has been on Facebook with a statement that basically blames his accountant:
Follow a Paid Professional's Advice and YOU too Could be Sent to Prison:
As business owners and property investors, we must not take other professional's advice without doing our own research, even getting second opinions and certainly growing our own legal knowledge.
The buck stops with us, ultimately it is us who are responsible and it is us who will pay the price if things go wrong.
This applies to all professional advisors or representatives including solicitors, accountants and also letting agents, (who act on behalf of the landlord and often get legislation wrong).
Perhaps my experience can serve as an example of what can happen if things go wrong.
My bankruptcy of December 2010 is well known and I was discharged from this in March 2012.
Prior to my discharge from bankruptcy my accountant introduced me to a company that had closed due to poor management and the ill health of a Director.
Under advice from my accountant, who was an actual Director, I recklessly took a management role (associate director) within this company, placing myself in breach of my bankruptcy restrictions, but within the parameters of my accountant's qualified and insured advice.
I became involved the day after the company had closed and all the staff had been made redundant by the former owner.
My activities, although they breached the legislation, were well intentioned and resulted in the staff all getting their jobs back.
I accept however that I was wrong, completely and that I was guilty of running a company whilst still an undischarged bankrupt, hence my entirely appropriate plea at court. When the charges were put to me, I pleaded guilty because I was wrong to have breached the legislation and it would have been dishonest to have claimed otherwise.
The property "press" and the media seem reluctant to publish that I had a co-defendant, the actual Director/my accountant.
The judge said to my co-defendant "you knew exactly what you were doing and you should have known far better, having used your qualifications and your position to break the law" https://www.duedil.com/…/91…/karan-butte...ectorships
My accountant, was sentenced to 20 months imprisonment (suspended at this time), a 5 year directors ban and 200 hours of community service as well as a proceeds of crime hearing to follow.
I followed formal advice from her in all of my dealings, although I acknowledge and admit that I was over optimistic, I cut corners and I should have adhered more closely to the legislation rather than just taken her word for it.
I received a 20 month prison sentence for acting in a management role within this company and also for withdrawing my salary, without leave from the court.
This was a huge shock to me, it was entirely unexpected and I had no earlier warning to expect a custodial sentence.
I can tell you from my experience (rather than tv or media hype), that just a few weeks in prison would be a sufficient deterrent for the majority of offenders.
Living with a man/men you have never met before, in a space the size of a disabled toilet, with a toilet in the room,
Limited food below that of hospital food or school dinners. Working for 50p an hour 10 hours a day,
An abundance of other men's hair trimmings on your supposedly washed bedding and cockroaches on the floors at night.
Dealing with difficult situations daily; saving 2 lives in my case, watching others die and helping loads of others with reading, writing, legal matters, family relationships and emotional wellbeing.
Worst of all, being separated from your children and having only daily phone calls and weekly visits (for the fortunate ones like myself).
It is certainly a punishment more than rehabilitation, a far cry from being the holiday camp that some sources would lead us to believe.
I now have 4 months on a curfew tag and a further 10 months of supervision to ensure that I do not reoffend (technically, I cannot actually commit the same offence again because I am no longer bankrupt, that ended early 2012).
I have learnt many lessons since the events of 2010-2011, I have applied them to my ventures subsequently and teach them to others at every opportunity.
If you do not want to read my occasional insights or contributions feel free to use the block function that facebook offers.
Aeroplane crashes are tragedies and car smashes are awful, but after study and analysis, they have massively improved safety.
If you want to ensure financial safety then it is prudent to learn from failures as well as successes.
I have been very active in property, land and related enterprises for 10 years, (as well as being a happy, active and involved father to my 5 daughters).
I have been involved in hundreds of transactions across a wide range of strategies and I am happy to share my knowledge and experiences.
I am known for "Ask me Any Property Question" so feel free to ask away, publicly or privately.
As well as big successes, no one has failed more in property than me, so it's up to you, individually, whether you want to ignore my plane crashes, or whether you want to use any learnings to improve your own safety, sustainability and performance.
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He wrote this despite pleasded guilty to the charges, despite the fact that he is still under sentence, and despite the fact that he has an even bigger court case starting on Monday.
I think he has been a bit premature in returning to the property scene, not to mention saying that his spell in prison was someone else's fault! Another guru who cannot admit responsibility for their mistakes. So lessons haven't been learned.
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