Read on for the details of this case.
On 29 July 2020, James O’Driscoll (“Mr O’Driscoll”) caused JH Landscaping & Improvements Ltd (“JH”) to apply for a Government-backed Bounce Back Loan (“BBL”) and obtain funds of £50,000 to which it was not fully eligible, by providing false or misleading information regarding JH’s turnover for the calendar year 2019, 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 an estimated turnover if the business was established after 01 January 2019
- JH was incorporated and commenced trading on 15 February 2018
- For the year ended 29 February 2020, JH’s accounts show turnover of £153,076 Bank statements show deposited sales income of no more than £148,825.07 in the calendar year 2019
- On 29 July 2020 Mr O’Driscoll applied, on behalf of JH, for a BBL of £50,000 from its bank, declaring turnover of £215,000
- In a questionnaire dated 09/02/2023, Mr O’Driscoll confirmed that an estimated turnover was used.
- As per the above terms of the BBL scheme and taking into account the date JH was incorporated and commenced trading, an estimated turnover was not permitted JH received the BBL of £50,000 into its bank account on 30 July 2020
- By Mr O’Driscoll applying for and obtaining a BBL of £50,000, he caused JH to receive more funds than entitled to On 17 February 2022, JH entered into Creditors’ Voluntary Liquidation with liabilities of £48,423.17, £47,500.01 of which was owed in respect of the BBL.
- Barclays submitted a Proof of Debt in the liquidation proceedings for £47,799.95.
Mr O’Driscoll failed to ensure that JH maintained and/or preserved adequate accounting records from 01 March 2021 onwards or, in the alternative, has failed to deliver up such records to the Liquidator.
As a result of the failure to maintain, preserve or deliver up adequate records it is not possible to:
- Identify the recipient of and purpose for payments totalling £150,000 made from JH’s bank accounts between 01 March 2021 and 11 November 2021
- Identify the source of and reason for deposits totalling £184,500 into JH’s bank accounts between 05 March 2021 and 08 November 2021
- Establish the amount for VAT payable in the final nine months of trading Establish the reason for payments totalling £35,600 in March 2021 with the reference “VW O’Driscoll” or to account for the vehicle inferred to have been purchased
