As always, read on for the full details of this case, that resulted in an 8 year ban.
On 15 June 2020, Sharon Rushokye (“Mrs Rushokye”) caused Flexiblecare Link Services Limited (“Flexiblecare”) to make a Bounce Back Loan (“BBL”) application for £50,000 when she knew or ought to have known that Flexiblecare was not eligible for a BBL of such amount.
Mrs Rushokye made a wrongful declaration by overstating Flexiblecare’s turnover and as a result, Flexiblecare received £44,561.97 more BBL funds than it was entitled to from the BBL scheme.
In that:
- Flexiblecare was incorporated on 28 July 2014.
- Under the BBL scheme, businesses could apply for a loan of between £2,000 and £50,000, subject to a maximum of up to 25% of its turnover for the calendar year 2019.
- Financial accounts for year-ended 31 July 2019 show turnover of £18,742.
- Financial accounts for year-ended 31 July 2020 show turnover of £6,468.
- Flexiblecare’s bank statements from August 2019 to December 2019, show a total turnover of £3,010.13.
- Using the turnover of £18,742 from the financial accounts for year-ended 31 July 2019 and turnover in the company bank account of £3,010.13 from August 2019 to December 2019, Flexiblecare had a combined turnover of £21,752.13 for the calendar year 2019.
- On 15 June 2020, Mrs Rushokye applied for a £50,000 BBL on behalf of Flexiblecare, stating the company’s annual turnover for the calendar year 2019 as £200,278.
- On 16 June 2020, a BBL of £50,000 was paid into Flexiblecare’s bank account.
- Based on turnover of £21,752.13 for the calendar year 2019, Flexiblecare was eligible for a maximum BBL of £5,438.03 and received £44,561.97 more than it was entitled to.
- On 30 June 2022, Flexiblecare entered Creditors Voluntary Liquidation with known liabilities of £53,600, of which £50,000 is owed in respect of the BBL.
