Sandwell councillor declared bankrupt after decade-long row with widow over £30,000
A senior Sandwell councillor has been declared bankrupt following a near decade-long row with a widow over £30,000 she gave to him and his wife.
Councillor Richard Marshall, cabinet member for leisure at Sandwell Council, was alleged to have failed to re-pay the five-figure sum, said to have been given to him as a loan.
However, the councillor claims the money was given to his wife as a gift by Dianne Hercberg after the couple supported her following the death of her husband.
Legal action was launched against Councillor Marshall, ward member for Smethwick, and he was ordered to pay back the money as well as legal costs, which saw the total rocket to almost £85,000.
When he was not able to come up with the cash within the 28-day time limit bankruptcy proceedings were launched, which were supported at Birmingham County Court on Tuesday.
Councillor Marshall, who was elected in 2014, claimed he offered to pay back the money, which originally changed hands in 2009, in £1,000 instalments, but that this was refused by the claimant's solicitors.
Solicitor Gareth Ruddock, a partner with FBC Manby Bowdler, said: "Our client, Dianne Hercberg, issued a claim against Richard and Marie Marshall by which she sought to recover a significant sum of money that she alleges was loaned to Mr and Mrs Marshall but not paid back to her.
"Mrs Hercberg put the matter in our hands and, as a result, a court order was made in September 2015 entitling Mrs Hercberg to the return of monies, with interest and costs.
"The full payment has not been received to date, therefore Mrs Hercberg petitioned the court for a bankruptcy order against Richard Marshall.
"The petition to the court specified a sum of £84,734.34 was owed to Mrs Hercberg.
"The petition was heard before Birmingham County Court where Mr Marshall was declared bankrupt by order of the court."
Following the hearing, Councillor Marshall said: "She gave my wife a gift of £30,000. She lived with us for a good while and wanted to give her some money for helping her out at a bad time in her life.
"She said she was going to give us some money. She had got a lot of money.
"If she was broke there would have been some hesitation. I'm devastated it's got to this point.
"At the end of the day this does not affect the role I have been doing."
