10-Year Ban for Bounce Back Loan Turnover Fraud and Hidden Use

Just one Director ban today the 5^th of July 2023, and that is to the man named in this case who is now starting a 10 year ban for wrongdoing associated with a Barclays BBL.

On 18 May 2020 Mr Tomasz Fornal (“Mr Fornal”) caused Tyre Truck Service Limited (‘TTS”) to apply for a government-backed Bounce Back Loan (‘BBL’) totaling £50,000.00 for which it was not eligible by including false information relating to turnover.

In that:

• TTS was incorporated on 9 February 2018 and commenced trading on the same date.
• On 18 May 2020 TTS applied for a BBL of £50,000.00, the turnover stated in the application was £205,000.
• The BBL was received into the company account on 19 May 2020.
• The company’s accounts for the years ending 28 February 2019 and 28 February 2020 show a turnover of £29,980.00 and 20,470.00 respectively.
• TTS Bank account statements for the calendar year 2019 include income totalling £14,530.
• Allowing for unbanked cash receipts and relying on the filed accounts for the year ending February 2020, the Company was eligible for a BBL of no more than £5,117.50.
• The Company therefore received at least £44,882.50 more than it was entitled to.

Mr Fornal failed to ensure that TTS maintained and/or preserved adequate records or, in the alternative, he has failed to deliver up sufficient accounting records from 28 February 2020 ( being the date of the last accounts) to the date of the Liquidation.

In the absence of adequate accounting records it has not been possible to determine the following:

• Whether income amounting to £149,529 ( including covid support of £71,441) paid into the bank account after 28 February 2020 constituted TTS’ total income.
• Whether payments amounting to £ 151,797 out of TTS Bank account after 28 February 2020 related to bona fide business expenses , in particular:
• Payments totalling £38,420 to Mr Fornal
• Cash withdrawals totalling £1,500.00
• Two transactions with reference “ cash loan” totalling £10,000.00
• Whether payments made from the proceeds of the BBL related solely to business expense as per the terms of the scheme.
• Whether support received from the HMRC JRS scheme amounting to £21,441 related to legitimate claims