Bankruptcy fraudster slammed with 2.5-year jail sentence

·         Two offences of disposing of property within 12 months before a petition has been filed with intent to defraud creditors.

·         disposing of property after a petition had been filed with intent to defraud creditors.

·         knowingly making a false declaration in a statement of affairs in bankruptcy.

·         Failing to keep books of account within five years preceding bankruptcy.

·         Failing to keep books during bankruptcy.

According to the Australian Financial Security Authority (AFSA), Sward’s conduct involved the disposal of assets both before and after his bankruptcy petition, false declarations, and failures to keep required financial records.

Judge Holliday KC ordered Sward to pay $6,151 in restitution to American Express by 11 May 2026, as well as imposing a pecuniary penalty of $51,999 for each of the three indictable offences, totalling $155,999 to be paid in monthly instalments until fully discharged.

Tim Beresford, AFSA chief executive and inspector-general in bankruptcy, said this court action against Sward stemmed from an AFSA investigation and its fight against dishonest actions.

“This sentence reflects the seriousness of calculated conduct that undermines creditor outcomes and confidence in Australia’s personal insolvency system,” he said.

“AFSA will continue to prioritise harms-based enforcement where deliberate deception and misuse of the system are evident.”

During the hearing, it was found that in the three months leading up to Sward’s bankruptcy, he had disposed of $119,500 across six transactions with intent to defraud creditors despite owing significant debts.

AFSA revealed approximately one year into his bankruptcy; Sward sold a Porsche for $70,000 that he had purchased while bankrupt and failed to disclose the sale to his bankruptcy trustee.

In addition to this, Sward was also found to have made false declarations in his statement of affairs and failed to keep the required business and personal records, which further obstructed the work of the registered trustee.

Creditors were denied timely access to money and remained out of pocket for around 18 months.

Judge Holliday KC said she hoped Sward understood the seriousness of the offences he had committed, and noted the decision not to impose actual custody was “very borderline”.

Judge Holliday KC warned that any failure to make payment on time could result in Sward being brought back before the court.

This matter was prosecuted by the Office of the Director of Public Prosecutions following an investigation and referral by AFSA.