Former Chinese takeaway owner sentenced after being found guilty of fraudulently disposing of property
A former Chinese takeaway owner, Zhang Jin Chen, was sentenced to 12 months in prison, suspended for 18 months, after being found guilty of fraudulently disposing of property as a bankrupt. He was also ordered to complete 150 hours of unpaid work and 10 days of rehabilitation activity. Chen operated a Chinese takeaway called Fortune House from an address in Portsmouth. While he registered the takeaway as a business with HMRC in February 2012 he did not register for VAT. HMRC officials visited the takeaway in February 2020, finding evidence that Fortune House should have been VAT registered since December 2012. In October 2020, Chen and his ex-wife sold their jointly owned property. While Chen knew that he owed HMRC £43,876, he disposed of £107,550 of his proceeds from the sale without paying HMRC back. In July 2021, he then filed for bankruptcy stating that he knew he was indebted to HMRC but that he could not repay the debt. He claimed that he only had £20 in his bank account and £100 in cash. In March 2022, Chen signed a five year Bankruptcy Restrictions Undertaking restricting him from being able to borrow more than £500 without disclosing his bankrupt status and from holding certain roles in public organisations. The Insolvency Service is seeking to recover the funds under the Proceeds of Crime Act 2002.