Read on for the details of this case.
Mr Rahain Mohammed, also known as Rahan Mohammed (“Mr Mohammed”), breached the terms of the Bounce Back Loan (“BBL”) scheme by causing Tesla Partnership Ltd (“Tesla”) to overstate its turnover on its application for a BBL, resulting in the company receiving a BBL of £50,000 when he knew, or ought to have known, that Tesla was not eligible for a loan of that value.
In that:
- The BBL scheme terms allowed businesses to receive a loan of up to 25% of their annual turnover for the 2019 calendar year, which the applicant would self-certify when completing the BBL application
- Tesla was incorporated on 15 April 2010
- On 27 November 2020 Mr Mohammed declared on the company’s BBL application form an annual turnover of £395,000 for 2019, and consequently on 01 December 2020 Tesla received a £50,000 BBL.
- Annual accounts for the year ending 30 April 2019 declare a turnover of £57,167.
- Annual accounts for the year ending 30 April 2020 declare a turnover of £66,314.
- Bank statements for the company show that the company received £58,610 income in to Tesla’s bank account.
- On that basis, Tesla would only have been entitled to a BBL of £14,652.
- Mr Mohammed therefore caused the company to overstate its turnover by resulting in the company receiving £35,348 more than it was entitled to.
- At liquidation, Tesla had liabilities totalling £56,094, of which £50,727 was owed to the bank in respect of the BBL.
