This Case revolves around an RBS BBL.
Suzanne Catherine Potts (‘Miss Potts’) caused Aqua Rosa Limited (‘ARL’) to overstate its turnover for a government-backed Bounce Back Loan (‘BBL’) of £50,000 for which it was not eligible for and as a result of which the Company obtained £31,965 from the Government-backed Bounce Back Loan Scheme to which it was not entitled,
In that:
- The Scheme enabled a business to obtain a BBL of up to 25% of a business turnover for the calendar year 2019 up to a maximum of £50,000. Where a business was established after 1 January 2019, the application was required to apply a 25% limit to the estimated annual turnover from the date the business commenced.
- ARL was incorporated on 21 September 2006 and started trading on 1 October 2006.
- Prepared accounts for the year ended 30 September 2019 disclose a turnover of £83,490.
- The prepared accounts were not listed as signed or approved by Miss Potts until 28 September 2020.
- ARL applied for a BBL from its lender on 5 May 2020, stating that the ARL‘s turnover in 2019 was £200,000.
- The company’s prepared accounts for 30 September 2019 had not been filed at the time of the application.
- Bank statements for the 2019 calendar year, show income received of £72,138.
- Based on the available information at the time of the application, ARL was therefore eligible for a BBL of no more than £18,035.
- ARL received the BBL of £50,000 into its bank account on 11 May 2020.
- ARL entered Creditor’s Voluntary Liquidation on 4 October 2021
- No repayments were made to the BBL and at liquidation, £50,000 was owed in respect of the outstanding BBL.
