Here is the story behind two wayward Bounce Back Loans and the reasons why the Company Director named is today starting a 12 year ban.
Masala Zone Taunton Ltd
HO Illegal workers
Mr Mohammed Awal Miah (“Mr Miah”) breached his duties as a director of Masala Zone Taunton Ltd (“MZT”) by failing to ensure that it complied with legislative requirements
In that:
- MZT did not comply with its statutory obligations under The Immigration, Asylum and Nationality Act 2006 by employing three people who did not have the appropriate permissions to work in UK.
- Following a visit from Home Office Immigration Officers on 17 October 2019, during which this breach was discovered, MZT was issued with a penalty notice in the sum of £45,000.
- A repayment plan was agreed which was due to commence by direct debit on 21 March 2020.
- The initial payment due on this date was not made and there were no further attempted payments.
- MZT’s records do not record any payments were made towards discharging the penalties levied.
- No payments were ever made towards MZT’s penalties, resulting in £45,000 remaining unpaid on liquidation
- Mr Miah was in office as a sole director of MZT at the time of the Home Office visit.
Barclays Bounce Back Loan
On 6 May 2020, Mr Miah caused MZT to apply for a Government backed Bounce Back Loan (“BBL”) totalling £50,000 that the company was not eligible for.
In addition, the BBL funds were not used in its entirety for the economic benefit of the business.
In that:
Mis-application
- The BBL application required the applicant to confirm that MZT was trading as at 1 March 2020 and as at the date the BBL application was made on 6 May 2020
- MZT’s bank statements record the final credit received into the bank account (not including the BBL received in May 2020) was received on 19 February 2020.
- Available payroll records provided by MZT’s accountants confirm the final payroll was run in February 2020 and that employees left on 16 February 2020.
- Available records confirm that MZT was not trading as at 1 March 2020, or as at the date the BBL application was made on 6 May 2020.
- The BBL application required the applicant to confirm that they were able and intended to complete timely repayments in future.
- MZT’s available records indicate it ceased trading in February 2020 and therefore the applicant made a false declaration in respect of MZT’s ability and intention to repay the BBL
Misuse of funds
- The Government backed BBL scheme required the applicant to undertake that the BBL funds were to be used for the economic benefit of the business and should not have been used for personal purposes MZT applied to the Bank for a BBL in the sum of £50,000 on 6 May 2020.
- The application was signed by Mr Miah.
- The BBL was received into MZT’s bank account on 11 May 2020. The balance on the account prior to receipt of the BBL was overdrawn in the sum of £808.36.
- Between 11 May 2020 and 20 May 2020 unidentified cash/counter withdrawals in the sum of £49,190 were made from MZT’s bank account leaving a balance of £1.64 on the account.
- No evidence has been supplied that these were for the economic benefit of MZT MZT’s bank statements do not record any repayments were made to the bank in respect of the BBL and the Statement of Affairs record an outstanding BBL owing in the sum of £50,000 on liquidation.
Spice Junction Wellington Ltd
HO Illegal workers
Mr Mohammed Awal Miah (“Mr Miah”) breached his duties as a director of Spice Junction Wellington Ltd (“SJW”) by failing to ensure that it complied with legislative requirements.
In that:
- SJW did not comply with its statutory obligations under The Immigration, Asylum and Nationality Act 2006 by employing three people who did not have the appropriate permissions to work in UK
- Following a visit from Home Office Immigration Officers on 17 October 2019, during which this breach was discovered, SJW was issued with a penalty notice in the sum of £30,000.
- On 8 January 2020, a repayment plan was agreed which was due to commence on 21 March 2020.
- SJW’s records do not record that any payments were made towards discharging the penalties levied.
- No payments were made towards SJW’s penalties, resulting in £30,000 remaining unpaid on liquidation.
- Mr Miah was in office as a sole director of SJW at the time of the Home Office visit.
Bounce Back Loan
Mr Miah caused SJW to apply for a Government backed Bounce Back Loan (“BBL”) totalling £50,000 and failed to use the BBL in its entirety for the economic benefit of the business.
In that:
- The Government backed BBL scheme required the applicant to undertake that the BBL funds were to be used for the economic benefit of the business and should not be used for personal purposes.
- SJW applied to the Bank for a BBL in the sum of £50,000.
- The application was signed by Mr Miah.
- The BBL was received into SJW’s bank account on 6 May 2020.
- The balance on the account prior to receipt of the BBL was £9,081.72.
- Between 6 May 2020 and 8 June 2020 SJW received £7,460.55 into its bank account giving total available funds of £66,542.27
- Between 10 May 2020 and 4 June 2020 unidentified cash/counter withdrawals in the sum of £66,510 were made from SJW’s bank account.
- The entirety of the BBL funds had been withdrawn by 8 June 2020 when the account went overdrawn.
- No evidence has been supplied that these were for the economic benefit of SJW Santander has submitted a claim in the sum of £51,443.92 in SJW’s liquidation in respect of the outstanding BBL.
