Another day, and yet another Barclays Bounce Back Loan turns sour, with the Director of the Company that got it being given a 9 year ban. Here are the full details of that case.
On 26 June 2020 Mohammed Masaud Malik caused Protection of Human Rights in Public Law (“the Company”) to apply for a Government backed Bounce Back Loan (“BBL”) totalling £50,000 by providing false or misleading information regarding turnover, contrary to the terms of the BBL scheme,
In that:
- The BBL scheme permitted a loan of up to 25% of a business’ turnover in the calendar year 2019 or estimated turnover if the business had been established after 01 January 2019.
- The Company was incorporated and commenced trading on 05 November 2009
- Accounts for the year ended 31 March 2019 show turnover of £88,619
- Accounts for the year ended 31 March 2020 show turnover of £104,357
- VAT Returns submitted for the quarters 03/19 to 12/19 show total outputs for the year of £100,119
- The Company applied for a BBL from its bank on 26 June 2020 stating that its turnover was £240,000 The Company was eligible for a BBL of £25,030.
- By applying for and securing a BBL of £50,000 the Company obtained £24,970 more BBL funding than it was entitled to
- The Company received the BBL totalling £50,000 into its bank account on 29 June 2020
No repayments were made in respect of the BBL and £50,977.63 is outstanding at liquidation
