Read on for all of the details of this case.
On 13 June 2020, Alanas Petrosius (“Mr Petrosius) caused Alanas Ltd to breach the terms and conditions of the Bounce Back Loan (“BBL”) scheme by applying for a BBL of £50,000 to which it was not fully entitled.
As a result, Alanas Ltd received a BBL of at least £38,415 more than it was entitled to.
In that:
- Under the BBL scheme businesses 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, or where a business was established after 01 January 2019 it is their estimated turnover.
- Alanas Ltd was incorporated on 03 September 2018.
- On 13 June 2020, Mr Petrosius applied for a BBL of £50,000 on behalf of Alanas Ltd declaring that its turnover for the calendar year 2019, or estimated annual turnover was £205,000.
- Accounts for Alanas Ltd for the period ending 30 September 2019 record turnover to be £35,832.
- Accounts for Alanas Ltd for the period ending 30 September 2020 record turnover to be £36,213.
- Alanas Ltd’s bank account records turnover for the period 01 October 2019 to 31 December 2019 to be £10,507.
- Mr Petrosius states that Alanas Ltd’s turnover for the calendar year 2019 was in the region of £40,000.
- Based on the turnover from accounts to 30 September 2019 and the turnover in the bank statements from 01 October 2019 to 31 December 2019 totalling £46,339, Alanas Ltd would have been entitled to a maximum BBL of £11,585, and therefore by making an application to borrow £50,000, Alanas Ltd received a BBL of at least £38,415 more than it was entitled to.
- On 15 June 2020 Alanas Ltd received the BBL funds of £50,000 into its bank account.
- Alanas Ltd made repayments of £5,627 towards the BBL.
- Alanas Ltd entered into Creditors Voluntary liquidation on 10 May 2022.
- Total liabilities at liquidation amounted to £45,303, of which at least £44,343 relates to the BBL.
