A total of £196,899 was left unpaid by the BBL wrongdoing the Company Director named in the following case committed.
Davina Pritti PRASAD, (“Ms Prasad”) caused Ultamodan Limited (“UL”) to apply for and obtain four Bounce Back Loans (“BBL”) of £50,000 each with four separate banks.
This breached the conditions of the BBL scheme as only one BBL up to a maximum value of £50,000 was permitted.
In that:
- A company could apply for a loan of up to 25% of its turnover in the calendar year 2019, from a minimum of £2,000 up to a maximum of £50,000.
- The BBL application form requires the applicant to sign a declaration which states, amongst other things, that this is the only application for a BBL, and that the applicant is not part of a wider group, in the process of applying for, or has already received a BBL.
- In June 2020, Ms Prasad submitted a BBL application and obtained a loan of £50,000.
- In July 2020, Ms Prasad submitted a second BBL application to a different bank and obtained a second £50,000 loan.
- In August 2020, Ms Prasad submitted a third BBL application to a different bank and obtained a third £50,000 loan.
- On 04 August 2020, Ms Prasad submitted a fourth BBL application to a different bank and obtained a fourth £50,000 loan.
- In a telephone interview with the Official Receiver on 06 January 2023, Ms Prasad confirmed that she applied for four BBLs on behalf of UL with Santander in June 2020, Metro Bank in July 2020, and HSBC and Starling Bank in August 2020.
At liquidation UL had liabilities of £627,207 including £196,899 due in respect of the four BBLs.
