The banks that lost one BBL each in this case are Metro Bank and HSBC, well, not lost of course as they get them back via the guarantee.
7 Year Ban
On or before 11 June 2020, Christopher Spearing (“Mr Spearing”) allowed The Parent Brand Limited’s (“Parent”) to make an application for a Government Backed Bounce Back Loan (“BBL”) which provided false information as to its turnover.
As a result, on 12 June 2020, Parent obtained a BBL of £19,800 under the Government backed BBL scheme when it was entitled to, at most, £11,588.
In that:
- The BBL scheme enabled a business to obtain one BBL of up to 25% of its turnover for the calendar year 2019, or estimated turnover if the business had been established after 01 January 2019.
- Parent was incorporated on 13 March 2017 and commenced trading in May 2017.
- Accounts for the year ended 31 March 2019 show turnover of £78,997.
- Accounts for the year ended 31 March 2020 show turnover of £24,523.
- Parent’s bank statements show net sales of £46,350 in the calendar year 2019.
- On 11 June 2020 Parent entered into a BBL agreement (“BBL1”) with Bank A for a loan of £19,800 which would require a turnover of at least £79,200.
- Parent was eligible for a BBL of £11,588. By applying for and securing BBL1 of £19,800, Parent obtained £8,212 more BBL funding than it was entitled to.
- Parent received BBL1 totalling £19,800 into its account with Bank A on 12 June 2020.
- No repayments were made in respect of BBL1 and £19,800 is outstanding at liquidation
On 12 August 2020, Mr Spearing allowed Parent to act in contravention of the BBL scheme by applying for and obtaining a second BBL of £22,750 from Bank B when prohibited from doing so.
In that:
- Parent entered into an agreement with Bank A for BBL1 on 11 June 2020.
- On 12 August 2020, Parent applied for a second BBL of £22,750 (“BBL2”) from Bank B which was paid into Parent’s account with Bank B on 22 September 2020 and was transferred into Parent’s account with Bank A on 23 September 2020.
- Parent’s account with Bank B was closed on 28 September 2020.
- The application for BBL2, signed by Mr Spearing’s co-director, included a declaration that that the application was the only application for a BBL for the business.
- The second BBL application was a direct contravention of the BBL scheme terms and conditions and, by making the second application, Parent obtained a BBL totalling £22,750 to which it was not entitled.
No repayments were made in respect of BBL2 and £22,750 is outstanding at liquidation Between 12 June 2020 and the Liquidation on 23 November 2021, Mr Spearing allowed Parent to breach the conditions of the BBL scheme by failing to ensure that Parent fully utilised the BBL funds for the economic benefit of the business.
In that:
- It was a requirement of the BBL scheme that the loan be used for the economic benefit of the business.
- BBL1 of £19,800 was paid into Parent’s account with Bank A on 12 June 2020, prior to receipt of those funds the balance on the account stood at £1853.
- BBL2 of £22,750 was paid into Parent’s account with Bank B on 22 September 2020 and transferred into Bank A on 23 September 2020.
- Between 12 June 2020 and 23 November 2021 , £10,856 was paid into Parent’s account with Bank A comprising sales receipts of £5,617, Job Retention Scheme grants of £ 5,200 and transfers from Parent’s deposit account with Bank A of £38.
- Between 12 June 2020 and 23 November 2021, business expenses totalling £18,359 were paid from Parent’s account with Bank A.
- Between 12 June 2020 and 23 November 2021, £36,900 was paid to Mr Spearing’s co-director from Parent’s account with Bank A which exceeded the amounts due in respect of salary, expenses and a debt owed by the Company by £30,311; These payments were not for the economic benefit of Parent.
- The only creditors at liquidation are Bank A for £19,800 in respect of BBL1 and Bank B for £22,750 in respect of BBL2.
11 Year Ban
On or before 11 June 2020, Natalie Mhari Spearing (“Mrs Spearing”) provided false or knowingly inaccurate information to Bank A concerning The Parent Brand Limited’s (“Parent”) turnover and, as a result, on 12 June 2020, Parent obtained a Bounce Back Loan (“BBL”) of £19,800 under the Government backed BBL scheme when it was entitled to, at most, £11,588.
In that:
- The BBL scheme enabled a business to obtain one BBL of up to 25% of its turnover for the calendar year 2019, or estimated turnover if the business had been established after 01 January 2019.
- Parent was incorporated on 13 March 2017 and commenced trading in May 2017.
- Accounts for the year ended 31 March 2019 show turnover of £78,997.
- Accounts for the year ended 31 March 2020 show turnover of £24,523.
- Parent’s bank statements show net sales of £46,350 in the calendar year 2019.
- On 11 June 2020 Parent entered into a BBL agreement (“BBL1”) with Bank A for a loan of £19,800 which would require a turnover of at least £79,200.
- Parent was eligible for a BBL of £11,588.
- By applying for and securing BBL1 of £19,800, Parent obtained £8,212 more BBL funding than it was entitled to.
- Parent received BBL1 totalling £19,800 into its account with Bank A on 12 June 2020.
No repayments were made in respect of BBL1 and £19,800 is outstanding at liquidation On 12 August 2020, Mrs Spearing caused Parent to act in contravention of the BBL scheme by applying for and obtaining a second BBL of £22,750 from Bank B when prohibited from doing so.
In that:
- Parent entered into an agreement with Bank A for BBL1 on 11 June 2020.
- On 12 August 2020, Parent applied for a second BBL of £22,750 (“BBL2”) from Bank B which was paid into Parent’s account with Bank B on 22 September 2020 and was transferred into Parent’s account with Bank A on 23 September 2020.
- Parent’s account with Bank B was closed on 28 September 2020.
- The application for BBL2, signed by Mrs Spearing, included a declaration that that the application was the only application for a BBL for the business.
- The second BBL application was a direct contravention of the BBL scheme terms and conditions and, by making the second application, Parent obtained a BBL totalling £22,750 to which it was not entitled.
No repayments were made in respect of BBL2 and £22,750 is outstanding at liquidation Between 12 June 2020 and the Liquidation on 23 November 2021, Mrs Spearing caused Parent to breach the conditions of the BBL scheme by failing to fully utilise the BBL funds for the economic benefit of the business.
In that:
- It was a requirement of the BBL scheme that the loan be used for the economic benefit of the business.
- BBL1 of £19,800 was paid into Parent’s account with Bank A on 12 June 2020, prior to receipt of those funds the balance on the account stood at £1,853.
- BBL2 of £22,750 was paid into Parent’s account with Bank B on 22 September 2020 and transferred into Bank A on 23 September 2020.
- Between 12 June 2020 and 23 November 2021 , £10,856 was paid into Parent’s account with Bank A comprising sales receipts of £5,617, Job Retention Scheme grants of £ 5,200 and transfers from Parent’s deposit account with Bank A of £38.
- Between 12 June 2020 and 23 November 2021, business expenses totalling £18,359 were paid from Parent’s account with Bank A.
- Between 12 June 2020 and 23 November 2021, £36,900 was paid to Mrs Spearing from Parent’s account with Bank A which exceeded the amounts due to her in respect of salary, expenses and a debt owed to her by the Company by £30,311.
- These payments were not for the economic benefit of Parent.
- The only creditors at liquidation are Bank A for £19,800 in respect of BBL1 and Bank B for £22,750 in respect of BBL2.
