Read on for the background to this case.
Marcel Viorel Ion (“Mr Ion”) caused Mavion Group Limited (“Mavion”) to breach the conditions of the Bounce Back Loan (“BBL”) scheme by overstating the Company’s turnover for the 2019 calendar year in order to obtain a BBL of £50,000.
Mr Ion has failed to provide any documentary evidence to show that net payments totalling £35,360.99 made between 06 July 2020 and 30 April 2021 to his personal bank account were used for the economic benefit of Mavion.
In that:
- The BBL scheme allowed businesses affected by the Coronavirus pandemic to apply for a BBL of between £2,000 and £50,000, up to a maximum of 25% of its turnover in the calendar year 2019 or if established after 1 January 2019 its estimated turnover.
- Mavion was incorporated on 28 July 2015.
- Historical bank statements list sales generated by Mavion between 5 January 2019 and 30 December 2019 at £82,943.21.
- Accounts for the years ending 31 July 2019 and 31 July 2020 show Mavion’s turnover at £66,805 and £119,086 respectively.
- On 30 June 2020, Mr Ion applied for a BBL of £50,000 on behalf of Mavion, stating in the application that its turnover for the 2019 calendar year was £205,410.
- On 1 July 2020 the £50,000 BBL was credited to Mavion’s bank account set up at another bank to receive the BBL.
- Mavion’s turnover was overstated on the BBL application form causing the Company to receive more BBL funds than entitled to.
- Between 06 July 2020 and 30 April 2021 net payments of £35,360.99 were made from Mavion’s bank account that the BBL was deposited into, for which no documentary evidence has been provided to show that the funds were used for the economic benefit of the Company.
- Mavion’s bankers are creditors in the Company’s liquidation for £50,526.17 including the BBL.
