Here are the details of this case. He should have got a solictor to battle his case.
Mr Mahammad Aleem (“Mr Aleem”) caused AMX Motors Ltd (“AMX”) to apply for a Bounce Back Loan (“BBL”) using overstated turnover figures to obtain a government-backed Bounce Back Loan (“BBL”) of £50,000.
As a result, the Company received at least £32,140 more than it was entitled to.
In that:
- AMX was incorporated on 15 November 2019.
- A company was entitled to apply for one BBL of up to 25% of its 2019 turnover or its estimated annual turnover if the company was not trading before 01 January 2019 up to a maximum of £50,000 under the BBL scheme.
- Therefore, Mr Aleem was required to use an estimated annual turnover figure for the purposes of obtaining the BBL funds.
- On 30 April 2020 AMX opened an account with a bank.
- On 08 May 2020, Mr Aleem applied for a BBL on behalf of AMX of £50,000 stating that AMX’s estimated annual turnover was £300,000.
- Mr Aleem stated that he calculated AMX’s projected annual turnover on the basis that he was ‘looking to sell approximately 4 cars per month at an average price of £6,000’.
- Mr Aleem stated that AMX commenced trading in January 2020 using his personal bank account, the statements for which show 6 cars sold in January 2020 for a total of £8,930, an average of £1,488 per car, but no sales thereafter.
- Using this average and Mr Aleem’s expectation of selling 4 cars per month for 12 months gives a projected annual turnover of £71,440 meaning that AMX was only eligible for a BBL at most of £17,860.
- Therefore, the Company received at least £32,140 more than it was entitled to.
- On 12 May 2020 the £50,000 was deposited into AMX’s bank account. AXM’s bank statements show £1,569 was credited to the BBL and the bank has claimed £48,688 for the outstanding BBL at liquidation on 24 January 2022.
