Fatima Kola and Nazia Choudhary, Directors of Jannatun Nursery Ltd, Receive 8 and 10-Year Bans for Misrepresenting Turnover to Secure £46,000 Barclays Bounce Back Loan

Read on for an overview of this case.

8 Year Ban

Conduct: On 19 September 2020, Fatima Kola caused or allowed Jannatun Nursery Ltd (“Jannatun”) to overstate its turnover in an application for a Government backed Bounce Back Loan of £46,000 which resulted in Jannatun receiving £22,201 to which it was not entitled.

In that:

• The terms of the BBL scheme was that the applicant company was entitled to borrow one BBL of between £2,000 and the maximum of £50,000.
• This entitlement being calculated on 25% of the applicant company’s 2019 turnover.
• Jannatun was incorporated on 17 October 2016.
• Accounts for the year ending 30 October 2019 show turnover of £75,947 which would entitle Jannatun to a maximum BBL of £18,987.
• Jannatun’s bank statements disclose credits amounting to £95,592 in the 2019 calendar year.
• This level of income would entitle Jannatun to a BBL of no more than £23,898.
• Jannatun applied for a BBL on 19 September 2020, declaring turnover of £185,000 and applying for a BBL in the sum of £46,000.
• Jannatun received the BBL of £46,000 into its bank account on 21 September 2020.
• At Liquidation £46,097 remained outstanding in respect of the BBL obtained.

10 Year Ban

On 19 September 2020, Nazia Choudhary (“Ms Choudhary”) caused Jannatun Nursery Ltd (“Jannatun”) to overstate its turnover in an application for a Government backed Bounce Back Loan of £46,000 which resulted in Jannatun receiving £22,201 to which it was not entitled.

In that:

• The terms of the BBL scheme was that the applicant company was entitled to borrow one BBL of between £2,000 and the maximum of £50,000.
• This entitlement being calculated on 25% of the applicant company’s 2019 turnover.
• Jannatun was incorporated on 17 October 2016.
• Accounts for the year ending 30 October 2019 show turnover of £75,947 which would entitle Jannatun to a maximum BBL of £18,987.
• Jannatun’s bank statements disclose credits amounting to £95,592 in the 2019 calendar year.
• This level of income would entitle Jannatun to a BBL of no more than £23,898.
• Jannatun applied for a BBL on 19 September 2020, declaring turnover of £185,000 and applying for a BBL in the sum of £46,000.
• Jannatun received the BBL of £46,000 into its bank account on 21 September 2020.
• At Liquidation £46,097 remained outstanding in respect of the BBL obtained.