Reckless bankrupt jailed over debts

AN investor who ran up huge debts by borrowing money and gambling it on the stock market before declaring himself bankrupt has been jailed for six weeks for reckless behaviour. Somos Uddin, 43, lost £22,000 by gambling on shares during a 14-month period before declaring himself bankrupt in November 2001. The circumstances of his bankruptcy were referred to the Department of Trade and Industry Legal Services (Prosecution) branch which brought the case to Thames Magistrates Court in December, where Uddin was convicted and sentencing was postponed until this week.

The court heard that Uddin contributed to his own downfall by making rash and hazardous speculations using information gleaned from watching television. He used Teletext and Bloomberg services for guidance but had no professional expertise or knowledge of the stock market.Uddin, of Tower Hamlets, East London, had been unemployed since 1997 but borrowed money from friends and family to make investments. Shortly before his bankruptcy, he took out bank loans and built up an overdraft to repay close associates, increasing his debts to £29,000. Sentencing Uddin, District Judge Cooper said the offence was so serious that only a custodial sentence could be imposed. Uddin was charged under the Insolvency Act. Where Official Receivers discover conduct by bankrupts that might constitute a criminal offence, the matters are reported to the DTI with a view to investigation and possible prosecution.