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Court weighs in to bankrupt “Name’s” bullion border battle

Former Harley Street psychiatrist Alan Geraint Simpson, whose more than $1 million stash of gold bullion and cash was seized in Hamilton this week, was a Lloyd's “Name” bankrupted by the London insurer after an 11-year battle.[Lloyd's of Londo

Jock Anderson
Fri, 24 Sep 2010

Former Harley Street psychiatrist Alan Geraint Simpson, whose more than $1 million stash of gold bullion and cash was seized in Hamilton this week, was a Lloyd’s “Name” bankrupted by the London insurer after an 11-year battle.

[Lloyd’s of London is a British insurance and reinsurance market. It serves as a meeting place where multiple financial backers, underwriters or Members – whether individuals known as Names – or corporations, come together to pool and spread risk.

Formed in Edward Lloyd’s coffeehouse in 1688, Lloyd’s made a killing during the British slave trade, when more than 1000 slave ships sank.

When times were good the Names made money. When bad, they paid.

Lloyd’s laid an egg in the 1980s and 90s when it was unexpectedly hit by large claims in the wake of huge United States legal awards in the asbestos, pollution and health hazard fields.]

In the first application of its kind in New Zealand, Steven John Williams, a trustee in English bankruptcy proceedings against Mr Simpson (68), wanted an order from the High Court recognising the English proceedings under the Insolvency (Cross-border) Act.

That application is due to be heard next Friday.

In the meantime Mr Williams – who acts on behalf of the Society of Lloyd’s - succeeded in getting a search warrant to search Mr Simpson’s home and seize gold and silver bullion and foreign cash he was allegedly hiding from his creditors, who now appear to include IRD in New Zealand.

A specialist police search team and insolvency officials carted armloads of gold and silver bars, and bags of coins and notes, from three safes in Mr Simpson’s Ann Street, Hamilton, home.

They were armed with a search warrant issued by Justice Paul Heath under the Insolvency (Cross-border) Act on September 17.

The Ann Street house was owned by Carrick John Clough and Hamilton lawyer Victoria May Mann.

While carrying on business as a psychiatrist in Britain, Mr Simpson spent much of his time in New Zealand from about 1993.

His legal woes began in 1998 when Lloyd’s obtained judgment against him in the High Court of England and Wales for £163,078.92.

Because they believed he had money in the Isle of Man, Lloyd’s went after him there in 2004.

Around the same time proceedings brought by a number of Lloyd’s Names (in which Mr Simpson was involved) against Lloyd’s, alleging misfeasance in public office, were working their way through the English courts.

That claim was dismissed and an appeal was unsuccessful.

Eleven years after getting its original judgment, Lloyd’s had Mr Simpson bankrupted in England in 2009 – by which time what he owed had swelled to £242,920.29.

Mr Simpson’s bankrupt estate was in the hands of English trustee Steven John Williams, who tracked him and his loot to Hamilton, where Mr Simpson’s apparent income were modest British and New Zealand pensions.

Anonymous informants tipped off Mr Williams, who feared there might not be anything for creditors if Mr Simpson disposed of the bullion through a New Zealand precious metal dealer.

An earlier search application, based on informers’ claims that about $US3 million in bullion was stored in the safes, was declined.

Mr Williams succeeded last week in getting the High Court at Hamilton to recognise the English bankruptcy proceeding as a foreign main proceeding, under the Insolvency (Cross-border) Act.

Justice Heath also suspended Mr Simpson’s ability to deal with any of his property in New Zealand and authorised the Official Assignee to examine him on oath about assets that might be available to distribute to creditors.

Jock Anderson
Fri, 24 Sep 2010
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Court weighs in to bankrupt “Name’s” bullion border battle
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