Read on for the details of this case.
On 24 June 2020, Mr Waqar Ahmed (“Mr Ahmed”) applied for and obtained a Government-backed Bounce Back Loan (‘BBL’) of £49,500.00 for Sigma World Limited (“Sigma”) by providing false or knowingly inaccurate information regarding Sigma’s turnover in 2019, thereby causing it to obtain £42,272.75 in BBL funding to which it was not entitled.
In that:
- The BBL scheme permitted a loan of up to 25% of a business’ turnover in the calendar year 2019 (or estimated annual turnover if it had been established after 2 January 2019), to a maximum of £50,000.00.
- Sigma was incorporated in July 2014 and commenced trading in March 2015.
- Its bank statements record income of £28,909.00 in 2019, which would have entitled Sigma to a BBL of no more than £7,227.25.
- On 24 June 2020, Mr Ahmed completed an application form for a BBL from Sigma’s bank, self-certifying that its turnover in 2019 was £198,455.00 and requesting a loan of £49,500.00.
- A BBL of £49,500.00 was received by Sigma on 24 June 2020
- As Sigma was trading throughout 2019 it was not entitled to estimate its turnover on the application form.
- Sigma therefore received £42,272.75 to which it was not entitled.
