Here is the story behind two now defaulted on Bounce Back Loans.
Sajad Akhtar caused Ace Point Travel Ltd (“Ace Point”) to act in contravention of the Bounce Back Loan scheme (“BBL”) by obtaining a second BBL loan of £50,000 and failing to use the monies obtained through the second BBL for the economic benefit of the company.
In that:
- Businesses could apply for a maximum of £50,000 under the BBL scheme and other facilities were available for businesses seeking finance over £50,000.
- On 5 May 2020, Sajad Akhtar, on behalf of Ace Point, applied for and subsequently received a £50,000 BBL (BBL 1).
- On 17 June 2020, Sajad Akhtar, on behalf of Ace Point, applied for and subsequently received a second £50,000 BBL (BBL 2), despite having already applied for and received BBL 1.
- The completed BBL application form for BBL 2 failed to declare that Ace Point had previously made a successful application for BBL 1 having received these funds into its bank account on 18 May 2020.
- BBL 2 was paid into Ace Point’s bank account on 18 June 2020.
Use of BBL2:
- Application forms for BBL 2 required the applicant to confirm that any funds would be utilised for the commercial benefit of the business and would not be utilised for personal benefit.
- On 18 June 2020 the balance on the bank account was £51,312 following receipt of the £50,000 funds from BBL2.
- Between 18 June 2020 and 27 July 2020 no other funds were paid into the account and by 27 July 2020 the balance on the account was £3,012.
- Between 23 June 2020 and 27 July 2020 there were cash withdrawals totalling £20,500.
- The books and records provided do not explain how these monies were used for the commercial benefit of the business.
- No explanation has been provided by Sajad Akhtar about how these payments were for the commercial benefit of the business.
- Ace Point entered liquidation on 27 November 2020 with liabilities totalling £435,328.61 including £100,000 in respect of the BBLs
