Here is how the Company Director named managed to blag those three Bounce Back Loans, and an overview of why he is today starting a 12-year ban.
Colt House Event Management Limited
Richard Alan Ward (Mr Ward) caused Colt House Event Management Limited (CHEM) to apply for a Bounce Back Loan (BBL) of £50,000 on 04 June 2020 when he knew, or ought to have known, that CHEM was not eligible for the loan.
In that:
- A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019.
- The applicant agreed to use the BBL to provide economic benefit to the business and not for personal purposes.
- In the application Mr Ward stated CHEM was established on 06 December 2018 and CHEM’s turnover was £200,000.
- However Companies House submissions show no accounts have been submitted for CHEM and bank records show CHEM had no income prior to receipt of the BBL.
- Consequently, CHEM received a loan which it was not entitled to from the BBL scheme.
- Having received the BBL of £50,000 on 09 June 2020 Mr Ward used £25,359 of the loan monies for his personal benefit between 09 June 2020 and 30 June 2020.
- On 12 July 2021 CHEM entered liquidation with total liabilities of £56,000, of which £50,000 was the BBL and £6,000 was to the director.
Colt House Developers Limited
Mr Ward caused Colt House Developers Limited (CHD) to apply for a Bounce Back Loan (BBL) of £20,000 on 10 June 2020 when he knew, or ought to have known, that CHEM was not eligible for the loan.
In that:
- A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019 or if established after 1 January 2019 its estimated turnover.
- The applicant agreed to use the BBL to provide economic benefit to the business and not for personal purposes. In the application, Mr Ward stated CHD was established on 02 January 2019 and its estimated turnover was £80,000.
- No evidence that the estimated annual turnover of £80,000 was appropriate has been provided.
- On 30 June 2020 CHD obtained a BBL of £20,000.
- Companies House submissions show no accounts have been submitted for CHD and bank records show CHD had no income prior to receipt of the BBL.
- Consequently, by overstating its estimated turnover in the BBL application form, this resulted in CHD being granted a BBL that it was not entitled to based on its available records at the date of the BBL application.
- Having received the BBL of £20,000 on 30 June 2020 Mr Ward used £11,400 for his personal benefit on 01 July 2020.
- On 12 July 2021 CHD entered liquidation with total liabilities of £22,500, of which £20,000 was the BBL and £2,500 was to the director.
Colt House Bloodstock Limited
Mr Ward caused Colt House Bloodstock Limited (CHB) to apply for a Bounce Back Loan (BBL) of £50,000 on 03 August 2020 when he knew, or ought to have known, that CHB was not eligible for the loan.
In that:
- A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019 or if established after 1 January 2019 its estimated turnover.
- The applicant agreed to use the BBL to provide economic benefit to the business and not for personal purposes.
- In the application, Mr Ward stated CHB was established on 15 August 2019 and its estimated turnover was £220,000.
- No evidence that the estimated annual turnover of £220,000 was appropriate has been provided.
- On 18 August 2020 CHB obtained a BBL of £50,000, Companies House submissions show no accounts have been submitted for CHB and bank records show CHB had no income prior to receipt of the BBL.
- Consequently, by overstating its estimated turnover in the BBL application form, this resulted in CHB being granted a BBL that it was not entitled to based on its actual records at the date of the BBL application.
- Having received the BBL of £50,000 on 18 August 2020 Mr Ward used £44,131 for his personal benefit 19 August 2020 and 04 September 2020.
- On 19 May 2021 CHB entered liquidation with total liabilities of £62,500, of which £50,000 was the BBL and £12,500 was to the director.
