Stephen P Lacy

Member’s name: Mr Stephen P Lacy
Date of Hearing: 12 October 2017
Division: New South Wales
Tribunal: Disciplinary Tribunal

On 12 October 2017, the Disciplinary Tribunal found Mr Stephen P Lacy breached:

• Article 39(a)(ii)E of the Constitution in that he was bankrupt
• Article 39(a)(ii)B.2 of the Constitution in relation to his conduct in acquiring accounting practices under the Talos Group banner, with around eight of those practices going into liquidation within three years while Mr Lacy was the sole director.

Mr Lacy’s bankruptcy approximated $12.85 million, including approximately $500,000 due to the ATO for unpaid compulsory superannuation contributions.

The practice entities went into liquidation owing approximately $4 million to unsecured creditors.

Mr Lacy attended the Disciplinary Tribunal Hearing and only admitted that he was bankrupt.

Penalty and costs

The Disciplinary Tribunal found the Complaints sustained and imposed the following penalties:

• in relation to his bankruptcy, forfeiture of membership and Mr Lacy is not entitled to readmission until the later of 12 months from his discharge from bankruptcy or four years from the date of the Hearing (12 October 2021 unless the bankruptcy period is extended by Mr Lacy’s bankruptcy trustee) 
• in relation to his conduct in respect of the Talos Group, forfeiture of membership for five years commencing at the expiration of the period of forfeiture in relation to his bankruptcy.

Mr Lacy was ordered to pay costs of $725.67 and $1080.14 prior to any application for readmission to Membership.