Jailed fraudster Alex Swney has gone bust.

The former Heart of the City boss has been declared bankrupt in the Auckland District Court today.

It follows proceedings initiated by the Commissioner of Inland Revenue under the Insolvency Act to recover more than $3.8 million.

The matter has now been referred to the Official Assignee to administer the bankruptcy.

The disgraced 58-year-old was jailed for five years and seven months after admitting more than a decade of financial offending, which saw him avoid paying taxes and swindling cash from the organisation he set up by faking 229 invoices.