Here we have another Director banned for over-egging his business turnover to blag a BBL.
Mr Abid Mohammed (“Mr Mohammed”) caused Right Deals 4U Ltd (“Right Deals”) to obtain a government-backed Bounce Back Loan (“BBL”) of £25,000 and a BBL Top-Up of £6,250 by over-stating Right Deals’ annual turnover which he knew or ought to have known was false.
Right Deals therefore obtained £24,398 of BBL funding to which it was not entitled
In that:
- Right Deals was incorporated on 23 May 2017.
- The BBL scheme permitted a loan of up to 25% of a business’ turnover in the 2019 calendar year or estimated turnover if it had been established after 01 January 2019.
- Right Deals was established before 01 January 2019 and so actual rather than estimated turnover figures ought to have been used in any BBL application.
- The BBL application was completed by Mr Mohammed on 19 May 2020, in which he declared to the bank that the annual turnover for Right Deals in the 2019 calendar year was £125,000.
- Bank account statements for Right Deals shows that the total income for 2019 was £27,408.
- The BBL of £25,000 was credited into the bank account of Right Deals on 20 May 2020.
- The BBL Top-Up application was completed by Mr Mohammed on 11 November 2020, with the same bank that the BBL was obtained from.
- The BBL Top-Up application relied upon the turnover provided in the original BBL application.
- The BBL Top-Up of £6,250 was credited into the bank account of Right Deals on 11 November 2020.
- Based on annual turnover of £27,408, under the terms of the scheme, Right Deals was entitled to apply for BBL funding to a maximum of £6,852, and therefore received £24,398 which it was not entitled to.
- The BBL and BBL Top-Up remained outstanding at liquidation.
