BusinessBusiness RecoveryIPA president challenges ‘mafia’ rumours

IPA president challenges 'mafia' rumours

The new president of the Insolvency Practitioners Association has challenged insolvency practitioners who spread 'rumour and insinuation' about a pocket of corruption in the London profession to put up or shut up.

Link: Moses to head insolvency body

Maurice Moses told Accountancy Age that those who talk of a long-established rumour about corrupt practitioners operating in London should produce concrete evidence to back up their claims. He said: ‘We want to improve standards, but for regulation to work there needs to be due cause. Unless people are prepared to come forward with more than rumour and insinuation you cannot expect a regulator to act.’

Though rumours have circulated widely, no one seems willing to produce evidence of London’s so-called insolvency ‘mafia’ or point to whether the claims are simply a catch-all for the ‘sharp end’ of the profession, or even an urban myth.

One leading insolvency lawyer, speaking on condition of anonymity, said it referred to a number of practitioners ‘who historically have not bathed themselves in glory’.

‘There is a lot of sharp practice and at worst blatant disregard for the rules and relevant statements of insolvency practice. Sometimes it goes as far as being fraud,’ he said.

David Harrison, secretary of the Insolvency Practices Council, the profession’s ethical and professional standards watchdog, said: ‘The majority of IPs within the M25 talk about this. The mafia either needs exposing or the myth needs killing off.’

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