Payne, who was an ICAEW member, headed up Russell Payne & Co, one of the largest accountancy practices in Lincoln. The firm went into administration in February 2017 following a winding up petition presented to the court by HMRC.

The company, which has a turnover of £1.1m and 25 staff, was subsequently acquired by local firm Dexter and Sharp.

Payne was declared bankrupt on 16 June 2017 with a deficiency of £4.5m. At the time he stated that between 2009 and 2016 he borrowed sums of money from various parties to fund building ventures, supplement his general income, fund repayments to existing debts and to support his long term gambling addiction.

Subsequently the official receiver’s enquiries established that Payne had failed to disclose that he had disposed of assets in the lead up to the order being made.

In February 2017 Payne transferred his interest in a jointly owned property valued at £147,288 to a company of which he was a director. In March 2017 he sold his shares in the company for which he received £99,073.

Payne used £58,000 of the proceeds to repay a debt to a relative, £10,000 to repay two creditors, and the remainder to pay for household expenses. None of Payne’s remaining creditors received any payments and remained outstanding upon his bankruptcy.

Gerard O’Hare, an official receiver at the Insolvency Service said: ‘Where a bankrupt has taken undue risks with creditors’ money, he should not expect to do so without repercussions, particularly when others suffer financial loss as a result.

'A bankruptcy restriction in these circumstances will serve to provide creditors with a degree of protection, and it will also act as a deterrent to the bankrupt not to act in a similar manner in the future.’

Report by Pat Sweet