Read on for the details of this case.
During June 2020 Mr Ramunelis Kuodis (“Mr Kuodis”) caused R&K Trans Ltd (“the company”) to make a Bounce Back Loan (“BBL”) application of £50,000 when he knew, or ought to have known, that the company turnover supported an application for at most £6,694 and as a result, the company obtained £43,306 more than it was entitled to.
Furthermore, the whole of the BBL funds were not used for the economic benefit of the company, contrary to the BBL scheme.
In that:
- Under the BBL scheme businesses that were established and operating before 1 March 2020 could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover.
- The turnover figure was self-certified by the applicant.
- The turnover figure required was that for the calendar year 2019.
- The company was incorporated on 4 October 2015.
- On 3 June 2020 Mr Kuodis applied for a BBL of £50,000 on behalf of the company declaring that its turnover for the calendar year 2019 was £210,000.
- A review of the one known bank account operated by the company shows that from 1 January 2019 to 31 December 2019 receipts totalled £26,775.
- The company received the BBL funds of £50,000 on 5 June 2020.
- Between 3 August 2020 and 19 August 2020 payments totalling £40,000 of the BBL funds were paid out of the company bank account.
- Mr Kuodis has failed to provide a satisfactory explanation, or provide evidence, to show that these payments were for the economic benefit of the company.
- At the date of Liquidation, the company had total liabilities of £40,432 inclusive of £40,000 in respect of the BBL.
