Here are the details of this Santander Bounce Back Loan Blagger.
Mr Zarullah Jabarkhyl (“Mr Jabarkhyl”) breached the terms of the Bounce Back Loan (“BBL”) scheme by overstating the turnover of Your Ride Ltd (“YRL”) 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 YRL was not eligible for a loan of such amount.
In that:
- Under the BBL scheme, businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of 25% of annual turnover.
- The turnover figure was self-certified by the applicant.
- The turnover figure required was that for the calendar year 2019 or where a business was established after 1 January 2019 it is their estimated annual turnover.
- YRL was incorporated on 11 February 2019.
- YRL’s annual accounts for the financial year ending 28 February 2020 shows the company achieved a turnover of £42,874 between 11 February 2019 and 28 February 2020.
- Between 06 March 2019 and 06 March 2020 there were deposits into YRL’s bank account totalling £43,583.35.
- Mr Jabarkhyl applied for a £50,000 BBL on behalf of YRL.
- A £50,000 BBL required a declared turnover of at least £200,000.
- Consequently, on 31 July 2020, YRL received £50,000 BBL funds, the maximum loan under the BBL scheme and an amount to which YRL was not entitled to.
- There is no evidence to show that the BBL funds of £50,000 were used in its entirety for the economic benefit of YRL.
- At liquidation, YRL owed £55,499.88 to its creditors, £50,299.88 of which was owed to the Bank in respect of the BBL.
