Another day, another Director slapped with a ban for Bounce Back Loan related wrongdoing, read on for the details of this case.
Mrs Mihaela Pirlog (“Mrs Pirlog”) caused Ecore Construction Management Ltd (“ECML”) to breach the terms of the Bounce Back Loan (“BBL”) scheme by applying for and obtaining two Government-backed Bounce Back Loans of £50,000 each when it was only entitled to one BBL of £50,000.
In that:
- Under the BBL scheme, businesses were able to apply for up to 25% of their turnover to a maximum of £50,000.
- Businesses which originally borrowed less than the maximum amount available to them under the Scheme were eligible to top-up their original loan, however the total loan amount was not to exceed £50,000.
- Only one loan was available to businesses.
- On 26 May 2020, Mrs Pirlog applied for a BBL of £50,000 (“BBL 1”) on behalf of ECML from Bank A.
- The funds were received into ECML’s bank account on 28 May 2020.
- On 28 May 2020, Mrs Pirlog applied for a second BBL of £50,000 (“BBL 2”) on behalf of ECML.
- Mrs Pirlog applied using a previous director’s name, even though the individual named was no longer a director at the time of the application, as this was the director named on EMCL’s existing account with Bank B.
- The funds were paid into its account on 29 May 2020.
- As a result of the second application for a BBL, ECML received £50,000 BBL funds to which it was not entitled.
- Upon receipt of BBL2, Mrs Pirlog failed to ensure that the proceeds of £50,000 were repaid to the lender.
- As a director of ECML, Mrs Pirlog failed to ensure that ECML complied with the terms of the BBL scheme.
- At Liquidation, both BBLs remained outstanding in full.
