Disgraced former Southsea takeaway owner ordered to pay back over £70,000 or face prison
A former Southsea takeaway owner has been ordered to repay over £70,000 after spending his money on lavish items rather than settling his tax bill.
Having sold a joint owned house with his wife in Garnier Street in October 2020, Chen withdrew his proceeds of the sale in cash but rather than pay off his debts to HMRC, he bought expensive items from Apple and Burberry and then filed for bankruptcy.
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Chen was was handed a suspended sentence in May last year after being found guilty of fraudulently disposing of property as a bankrupt under the Insolvency Act 1986.
On Friday, February 13, Chen once again appeared at Portsmouth Crown Court where he was handed a confiscation order of £62,755 to be paid within three months, alongside costs of £8,000. If he fails to pay back the money he could face 18 months in prison and even then he would still be required to pay the money back.
Alexander Grierson, Head of Asset Recovery at the Insolvency Service, said: “Zhang Jin Chen had more than enough money to settle his tax bill following the sale of his house but chose instead to withdraw large sums of money and make luxury purchases.
“This confiscation order means that Chen’s debts will not disappear - he will remain liable for the full amount until it is paid. The Insolvency Service will work tirelessly to protect creditors and ensure individuals like Chen face the full consequences of attempting to defraud the system.”
Chen was sentenced to 12 months in prison, suspended for 18 months, at Portsmouth Crown Court on Friday, May 16. He was also ordered to complete 150 hours of unpaid work and 10 days of rehabilitation activity.
Chen signed a five-year Bankruptcy Restrictions Undertaking in March 2022 restricting him from being able to borrow more than £500 without disclosing his bankrupt status. The restrictions also prevent him holding certain roles in public organisations.