An 11 year ban is what the Director named in this case is starting today for the wrongdoing with a BBL highlighted.
On 20 May 2020 Mr Andrew Ian Williams (“Mr Williams”) caused AW Lifting Services Limited (“AW”) to apply for a government-backed Bounce Back Loan (‘BBL’) totalling £40,000.00 for which it was not eligible by including false information relating to turnover.
In that:
- AW was incorporated on 22 February 2019 and commenced trading on the same date.
- It was open for the Company to estimate its turnover on the BBL application.
- The Company made three applications for a BBL, two on 7 May 2020 for £15,000.00 (one of those applications stated the Company’s turnover to be £60,000.00.
- A third application was made on 20 May 2020, which stated the Company’s turnover to be £160,000.00.
- The first two applications made on 7 May 2020 were declined due to multiple applications being made for the same Company.
- The application on 20 May 2020 was approved.
- The Company received the BBL funds of £40,000.00 on 29 May 2020.
- At the time of the application(s), the Company been trading for over 12 months therefore would have known (or ought to have known) its turnover.
- Mr Williams has failed to provide evidence which supports the estimated turnover provided within the BBL.
- The Company accounts filed for the period ending 28 February 2020 state the Company’s turnover as £51,542.00.
- Based on the filed accounts for the year ending 28 February 2019 the Company was only eligible for a BBL for £12,885.50.
- The Company received £27,114.50 more than it was entitled to.
Mr Williams caused at least £40,000.00 of a Government-backed Bounce Back Loan (‘BBL’) obtained by AW Lifting Services Limited (‘AW”), to be disbursed in a manner which was not for the economic benefit of AW.
In that:
- An application for a BBL of £40,000 was submitted to AW’s bank on 20 May 2020.
- The loan was paid into AW’s account on 29 May 2020.
- The balance on this account immediately before the BBL credited the account was £1,007.55.
- Between 29 May 2020 and 20 November 2020, credits were made to the account totalling £28,772.44.
- The Company therefore had available funds of £69,779.00 (inclusive of the BBL funds).
- From the £69,779.00, the Director transferred payments totalling £64,819.00 to his personal account (£17,033.00 by way of direct debits and £47,786.00 in bank transfers).
- Further personal expenditure may also have been made from these funds totalling £3052.89.
- No reasonable explanation and / or evidence has been provided to show that the transfers to Mr Williams were made for the economic benefit of AW.
- 9 repayments were made in reduction of the BBL.
The balance due to the Company’s bank at the date of liquidation was £37,637.30.
