Queensland bankrupt sentenced for hiding assets, making false declarations
Matthew Jason Sward, 38, received a 2.5-year sentence at Southport District Court after pleading guilty to six offences under the Bankruptcy Act 1966 (Cth). He was released on recognisance of $2,000.
The offences involved disposing of $119,500 across six transactions in the three months before his bankruptcy petition, with intent to defraud creditors. Approximately one year into bankruptcy, Sward sold a Porsche for $70,000 that he'd purchased while bankrupt and failed to disclose the sale to his trustee.
Sward also made false declarations in his statement of affairs and failed to keep required business and personal records for the five years preceding bankruptcy and during bankruptcy.
Judge Holliday KC ordered Sward to pay $6,151 in restitution to American Express by 11 May 2026, plus pecuniary penalties totalling $155,999 ($51,999 for each of three indictable offences), payable in monthly instalments.
Creditors were denied timely access to funds and remained out of pocket for around 18 months.
Tim Beresford, AFSA chief executive and inspector-general in bankruptcy, said the sentence reflects the seriousness of calculated conduct that undermines creditor outcomes.
"AFSA will continue to prioritise harms-based enforcement where deliberate deception and misuse of the system are evident," Beresford said.
Judge Holliday KC noted the decision against actual custody was "very borderline" and warned that failure to make payments on time could result in Sward being brought back before the court.
The matter was prosecuted by the Office of the Director of Public Prosecutions following an AFSA investigation and referral.
Context for practitioners
The Bankruptcy Act 1966 requires persons in bankruptcy to lodge a statement of affairs within 14 days. Concealing property or providing false information can result in prosecution and extend the standard three-year-and-one-day discharge period to five or eight years.
Defences exist under section 265(1A) for disclosures made to the best of a person's knowledge and belief, or where property was disposed of in ordinary business operations or to meet family expenses.
This case follows a pattern of AFSA enforcement. A separate 2025 case involved a Melbourne lawyer sentenced to three years for creating fictitious debts to help clients avoid bankruptcy through fraudulent arrangements.