Here are the details of this case.
On 03 August 2020, Chesley Medley-Brown (”Mr Medley-Brown”) caused Spritz Cleaning Solution Limited (“Spritz”) to breach the terms & conditions of the Bounce Back Loan (“BBL”) scheme by applying for a BBL using an overstated turnover figure of £215,000 which resulted in Spritz receiving more than it was entitled to under the scheme.
In that:
- The Bounce Back Loan (“BBL”) criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover.
- The turnover figure required was that for the calendar year 2019 or where a business was established after 01 January 2019 it is their estimated turnover.
- Spritz was incorporated on 14 January 2019.
- In the BBL application dated 03 August 2020, Mr Medley-Brown stated an estimated turnover figure of £215,000.
- The accounts for the year ending 31 January 2020 show an actual turnover figure of £12,380 for the previous year. Spritz’s bank account shows income for the period 01 January 2020 to 03 August 2020 (the date of the BBL application) as £3,208.50.
- Mr Medley-Brown therefore ought to have known that the turnover figure of £215,000 was not accurate.
- On 04 August 2020 Spritz received a Bounce Back Loan (“BBL”) of £50,000.
- On the basis of a turnover of £12,380 Spritz would have been eligible for a BBL of £3,095.
- At Liquidation there are liabilities totalling £50,684 of which £50,000 is in respect of the BBL.
