Read on for all of the details of this case.
On 21 May 2020 Mr Imran Ahmed (‘Mr Ahmed’) applied for and obtained a Government-backed Bounce Back Loan (‘BBL’) of £50,000 for Shahaadah Productions Ltd (‘SPL’) by providing false or knowingly inaccurate information about its estimated turnover in 2019, thereby causing it to obtain at least £22,975 in BBL funding to which it was not entitled.
In that:
- The BBL scheme permitted a loan of up to 25% of a business’ turnover in the calendar year 2019 (or estimated annual turnover if it had been established after 01 January 2019), to a maximum of £50,000.
- SPL was incorporated in January 2019 and commenced trading at that time
- SPL bank statements record receipts of £108,100 for the period January 2019 to January 2020. This entitled SPL to a BBL of no more than £27,025.
- On 21 May 2020 Mr Ahmed completed an application form for a BBL from SPL’s bank, self-certifying that its turnover in 2019 was £206,000 and requesting a loan of £50,000.
- The BBL was received on 26 May 2020
- Mr Ahmed has failed to provide any documentation to support the level of turnover claimed in the application.
- At the liquidation date the full amount of SPL’s BBL remained outstanding and the bank was the only creditor.
Furthermore, on 21 May 2020 Mr Ahmed applied for a BBL of £50,000 for Igrafiks Ltd (‘Igrafiks’) by providing false or knowingly inaccurate information about its turnover in 2019, thereby causing it to obtain at least £34,977 in BBL funding to which it was not entitled.
In that:
- Igrafiks was incorporated in September 2015
- Igrafiks bank statements show that it was trading during 2019 and therefore was not entitled to estimate turnover for the BBL application
- Igrafiks’ bank income in 2019 was £60,093 and this entitled it to a BBL of no more than £15,023
- On 21 May 2020 Mr Ahmed completed an application form for a BBL from Igrafiks’ bank, self-certifying that its turnover in 2019 was £200,000 and requesting a loan of £50,000
- Therefore, Igrafiks obtained at least £34,977 in BBL funding to which it was not entitled.
- On 06 July 2020 £50,000 was paid to SPL, of which £35,495 was funded by Igrafik’s BBL
- No documents have been provided to evidence that any of these payments were for the economic benefit of the business.
- Although no payments were made towards Igrafiks’ BBL, the bank submitted a claim for £49,053; there was one other creditor, for £150
