Read on for an overview of this case.
On 28/05/2020 Mr Christopher Paul Orsman (Mr Orsman) caused CTL-ALT-DEL Limited (CTL) to apply for a Government backed Bounce Back Loan (“BBL”) of £50,000 when he knew, or ought to have known that CLT did not meet the eligibility to apply.
In that:
- In order to apply for a BBL the criteria was that a business was engaged in trading or commercial activity in the UK at the date of the application, was carrying on business on 1 March 2020 and had been adversely affected by coronavirus (COVID-19).
- CLT filed dormant accounts for the period of 17/12/2019 (date of incorporation) to 31/12/2020 which stated the company was dormant and did not trade in the period.
- CTL’s bank statements show no transactions took place in the period 01/12/2019 to 27/05/2020.
- On 28/05/2020 Mr Orsman applied for a BBL of £50,000 on behalf of CLT and declared a turnover of £300,000, that the company was carrying on its business on 01 March 2020, was engaged in trading or commercial activity at the date of the application, and the business has been adversely impacted by Covid-19.
- Consequently, CLT received a loan which it was not entitled to from the BBL scheme.
- Payments totalling £7,733.34 have been identified as having been made by CTL to repay the BBL.
- £42,266.66 of the BBL remained outstanding at the date of Liquidation.
