This case involves a Bounce Back Loan secured from HSBC which was obtained by over-egging business turnover, to which the Director of the Company that got it is now starting a 9 year ban.
Sonia Woolfson (“Ms Woolfson”) caused Coloryco Limited (“Coloryco”) to make false representations overstating the company’s turnover, in an application for a Bounce Back Loan (“BBL”) of £45,000.
In that:
- Under the BBL scheme, businesses were entitled to borrow between £2,000 and £50,000, up to a maximum of 25% of turnover in the calendar year 2019.
- On 16 September 2020, Ms Woolfson submitted a BBL application in which she stated that Coloryco’s turnover in the calendar year 2019 was £180,000.
- Coloryco’s accounts for year ended 30 June 2019 showed turnover of £30,919.
- Accounts for year ended 30 June 2020 showed turnover of £28,739.
- As a result of the overstatement of turnover in the BBL application, Coloryco borrowed £37,270 more than it was entitled to.
- The Liquidator’s report to creditors states that the balance outstanding in respect of the BBL at the date of liquidation was £45,183.
