Read on for the details of this case.
Mr Aslam Umer Sawant (hereinafter referred to as Mr Sawant) caused Olive & Spice Ltd (“Olive & Spice”) to apply for a Bounce Back Loan (“BBL”) of £22,000 using an overstated turnover figure at a time when he knew or ought to have known that the company was not eligible for the loan.
In that:
- A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of 25% of the business’s turnover for the 2019 calendar year.
- If a business was incorporated after 1 January 2019 a self-certified statement of turnover could be provided.
- On 24 December 2019 the company bank account was opened.
- There were no receipts until share capital of £100 was paid into the company bank account on 21 May 2020.
- On 23 May 2020 Mr Sawant made an application on behalf of Olive & Spice for a BBL for £22,000 using a self-certified statement of turnover of £100,000.00 as the company was incorporated on 13 September 2019.
- On 26 May 2020 a BBL of £22,000 was received into the Olive & Spice bank account.
- The BBL payment was the first transaction on the bank statement after the credit of the share capital.
- Between the receipt of the BBL on 26 May 2020 and the closure of the account on 21 February 2022 a total of £7,730.12 was received into the bank account.
- No evidence has been provided for the self-certified statement of turnover of £100,000.
- On 10 June 2022, Olive & Spice Ltd went into Liquidation with liabilities totalling £26,000.00 of which £22,000.00 was the BBL.
- No repayments have been made to the BBL except for the bank reclaiming £405.12 on the 21 February 2022, post-appointment of liquidators.
