Read on for the details of this case involving a NatWest £50,000 Bounce Back Loan.
On 13 November 2020, Mr Ezekiel Awonusi (“Mr Awonusi”) caused Shared Support Limited (“Shared Support”) to overstate its turnover in an application to obtain a Government backed Bounce Back Loan (“BBL”) totalling £50,000.
As a result, Shared Support received at least £ 44,932 to which it was not entitled.
Contrary to the terms of the BBL scheme the loan was not used in its entirety for the economic benefit of the business.
In that:
- Shared Support was incorporated on 21 February 2019.
- The BBL application enabled the applicant to apply for a loan of between £2,000 and £50,000 up to a maximum of 25% of Shared Support’s estimated annual turnover from the date that the Company was established.
- The BBL application submitted by Mr Awonusi in respect of Shared Support declared estimated annual turnover in the sum of £200,000.
- Dormant accounts were filed at Companies House for the accounting period ended 28 February 2020.
- Shared Support’s bank statements from opening on 1 March 2019 to the BBL application on 13 November 2020 record receipts representative of turnover into the account in the sum of £35,479.85 over this 21-month period.
- This would represent average annual turnover over a 12-month period in the sum of £20,274 and warranting a BBL of least of £5,068.
- The level of estimated turnover declared in the BBL application form in the sum of £200,000 was significantly overstated and Shared Support received at least £44,932 more than that to which it was entitled.
- The BBL application form required the applicant (Mr Awonusi) to declare that the BBL funds would be used for the economic benefit of the business.
- The BBL was credited to Shared Support’s bank account on 17 November 2020 at which point the account held a credit balance of £66.43.
- Shared Support’s bank statements confirm that between 21 November 2020 and 05 July 2021, the following payments were made:
- Payments to an associated company for which Mr Awonusi is currently a director, in the total sum of £33,369.58
- Payments to a third party in the total sum of £15,000
- Income received into the account over the same period totalled £19,521.78.
- As a consequence, at least £28,848 of BBL funds received had been utilised to make these payments.
- No evidence has been provided to show that these payments were for the economic benefit of Shared Support.
- Shared Support entered Creditors Voluntary Liquidation on 9 March 2022 At liquidation, the outstanding balance on the BBL account was £50,372.71
