Another day, another BBL turns sour and this case relates to a Starling Bank £50k Bounce Back Loan.
Paul Darren Hinwood (“Mr Hinwood”) caused, or his actions facilitated another individual to obtain a Bounce Back Loan (“BBL”) of £50,000 on behalf of Network Haulage Ltd (“Network”), to which it was not entitled, as it was not trading on 01 March 2020, nor at the time of the application on 20 May 2020, contrary to the terms and conditions of the BBL scheme.
In that:
- Mr Hinwood stated that he agreed to be a director, at the request of a third party, to obtain a haulage licence in order for the company to trade.
- Network was incorporated on 06 November 2019 and Mr Hinwood was appointed as the sole director on the same day.
- According to Mr Hinwood, Network was unable to commence trading due to an application for a haulage licence having been refused on 27 February 2020. BBL
- The BBL Scheme terms and conditions state that applicants applying for a BBL on behalf of the business are required to declare that the business was engaged in trading or commercial activity at the date of the BBL application, had been carrying on business on 01 March 2020 and had been adversely affected by the coronavirus pandemic.
- On 20 May 2020 a BBL application was submitted on behalf of Network which contained Mr Hinwood’s printed name as an electronic signature, requesting a £50,000 loan which would require Network’s estimated turnover to be £200,000.
- On the same day, £50,000 was paid into Network’s bank account.
- Network’s bank statements show no trading activity from the account opening date on 27 November 2019 until 15 June 2020.
- In addition, an application for a restricted goods vehicle operator’s licence was declined by the Office of Traffic Commissioner on 27 February 2020 so it was not possible to trade as a haulage broker.
- Therefore, Network was not trading on 01 March 2020 nor at the time of the BBL application on 20 May 2020, contrary to the terms and conditions of the scheme; and was not entitled to the BBL funds.
- Mr Hinwood stated that the third party obtained the BBL, but Mr Hinwood was the sole recorded director at the time of the BBL application and remained sole signatory on the bank account until liquidation.
- Network was placed into creditors voluntary liquidation on 27 October 2021.
- At liquidation, £50,000 was owed in respect of the BBL.
