Read on for the reasons why the Director named got his 12 year ban.
The Nevaless Group
Mr Abu Shazel Ashik Choudhury (“Mr Choudhury”) caused The Nevaless Group Limited (“NVGL”), to apply and obtain a Government backed Bounce Back Loan (“BBL”) totalling £50,000 that it was not eligible and did not use the BBL in its entirety for the economic benefit of NVGL.
In that:
- The BBL scheme required that the company be trading at 01 March 2020 and permitted a loan of up to 25% of a business’ turnover in the calendar year 2019, or estimated turnover if it had been established after 01 January 2019
- The BBL scheme required the applicant to declare that the BBL funds would be used for the economic benefit of the business.
- The BBL scheme provided that where one or more companies were within a group (defined as holding the majority of the share capital in another company) only one BBL could be obtained per business within that group and required the applicant to declare that no other BBLs had been applied for or received within the group.
- NVGL was incorporated on 7 August 2019
- On 20 June 2020, Mr Choudhury applied for a £50,000 BBL on behalf of NVGL and stated in the BBL application that NVGL’s turnover was £250,000.
- NVGL had no turnover either before or at the time of the BBL application, and this figure was based on projected profits from future sales by a subsidiary company.
- Mr Choudhury submitted the BBL application for NVGL, NVGL had not commenced trading and did not have a turnover.
- It was therefore not trading as at 1st March 2020.
- NVGL held 100% of the share capital of Nevaless Limited (“NVL”), meaning that NVGL and NVL formed a group in accordance with the BBL criteria.
- NVL had applied for a BBL of £50,000 on 29th May 2020 and received that BBL on 9th June 2020.
- This meant that NVGL, as a company within NVL’s group, was not entitled to a BBL.
- On 22 June 2020 BBL funds of £50,000 were paid into NVGL’s bank account.
- The balance on the account was £150 prior to the receipt of BBL
- On 11 September 2020, £50,000 was paid to a third party company for investment purposes
- Mr Choudhury states that the purpose of the payment was to make a 50% profit
- Mr Choudhury caused NVGL to apply BBL funds intended for the support of its business to a highly-risky speculative venture with no security or proper control of those funds, contrary to the BBL scheme
- No evidence has been supplied to show that the BBL funds were used for the economic benefit of NVGL
- On 24 February 2022, NVGL entered Creditors’ Voluntary Liquidation
- At liquidation, £66,238 was owed of which £50,199 was in respect of the outstanding BBL.
NEVALESS LIMITED
- Mr Abu Shazel Ashik Choudhury (“Mr Choudhury”) caused or allowed caused Nevaless Limited (“NVL”) to apply and obtain a Bounce Back Loan (“BBL”) of £50,000 on 29 May 2020 using overstated turnover figures in the application form.
- Consequently, NVL received more monies than it was entitled to from the BBL scheme.
- Contrary to the terms of the BBL scheme the loan was not used in its entirety for the economic benefit of the business.
In that:
- The BBL application scheme entitled businesses established prior to 1 January 2019 to apply for a BBL in the sum of up to 25% of their turnover in the calendar year 2019 (or, where a business was established after 1 January 2019, the estimated turnover from the date the business started).
- NVL was incorporated on 3 April 2018
- NVL was trading throughout 2019 and therefore the BBL application should have included a declaration of NVL’s turnover for the period between 1st January and 31st December 2019.
- The application stated that NVL’s turnover was £300,000.
- NVL’s NatWest Bank statements show that NVL’s turnover for the period 1st January to 31st December 2019 was in fact £8,270, not the £300,000 stated on NVL’s application for the BBL.
- This meant that the maximum BBL for which NVL was entitled to obtain was 25% of this turnover figure, namely £2,068.
- The application therefore led to NGL receiving the BBL funds of £47,932 to which it was not entitled.
- On 9 June 2020 BBL funds of £50,000 were paid into NVL’s bank account.
- The balance on the account was £919 prior to the receipt of BBL
- On 29 June 2020, £49,900 was paid to its parent company, NVGL
- On 14th July 2020, £27,000 of that sum was returned to NVL by NVGL which was then subsequently paid to third party company
- No evidence has been supplied to show that the BBL funds for NVL were used for the economic benefit of NVL
- On 24 February 2022, NVL entered Creditors’ Voluntary Liquidation
At liquidation, £72,458 was owed of which £49,626 was in respect of the outstanding BBL.
