Read on for the details of this case.
Ummal Sultan (“Mr Sultan”) caused Ummal Occupational Consultancy Limited (“Ummal” or “the company”) to apply for a Bounce Back Loan (“BBL”) in the sum of £48,000 on 11 January 2021 using overstated turnover figures in the application form.
Consequently, UMMAL received more monies than it was entitled to receive from the BBL scheme.
In that:
- A business could apply for a BBL of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019.
- On 11 January 2021 UMMAL applied for a BBL in the sum of £48,000. In the BBL application UMMAL’s turnover was stated by Mr Sultan as £400,000.
- The funds were paid into UMMAL’s bank account on 13 January 2021.
- UMMAL was incorporated on 15 May 2019. An analysis of the company’s bank account shows that in the period 25 May 2019 to 11 January 2021 UMMAL had a turnover of £10,863.
- Following the receipt of the BBL funds, analysis of the company’s bank account shows a turnover of £960 through to liquidation.
- No annual accounts were produced.
- The company traded on a consultancy basis with no employees and Mr Sultan states that he estimated future turnover at £400,000 because he intended to apply for contracts of that value.
- The company was placed into Creditors Voluntary Liquidation (“CVL”) three months after the receipt of BBL funds with no repayments made.
- Liabilities at the date of liquidation on 13 April 2021 amount to £52,180 comprising the £48,000 BBL, £2,278 stated to be owed to Mr Sultan and £1,901 owed to third parties.
- Between 26 January 2021 and 9 March 2021 Mr Sultan caused funds totalling £41,499 to be used contrary to the terms of the BBL scheme by making payments which are for no apparent economic benefit to OUC.
- Prior to receipt of the BBL monies the company’s bank account held £490.
- Two days after the £48,000 BBL money was received the account shows a credit of £8,640 from a client, considered to relate to pre BBL turnover, taking the balance to £57,089.
- Between 05 February 2021 and 08 March 2021 £12,100 was paid out to Mr Sultan, stated to be in relation to his “personal allowance”.
- There is no evidence of any contractual arrangement between Mr Sultan and the company to support the payment of these funds.
- Between 29 January 2021 and 05 February 2021 £9,800 was paid to a relative of Mr Sultan stated to be in repayment of a loan made to the company.
- The company’s bank account does not show the receipt of funds in this regard and no evidence of funds being loaned to the company has been produced.
- Between 26 January 2021 and 05 February 2021 £18,950 was paid to a third party associated with Mr Sultan, stated to be a loan to that individual.
- The third party is not connected to the business of UMMAL and there appears to be no commercial benefit to the company in making the loan.
- On 09 March 2021 £649 was paid to purchase an electric scooter.
- The company ceased trading on 09 March 2021 and entered into CVL on 13 April 2021.
