Director Disqualification for Covid and Bounce Back Loan Abuse

Case 1 – Director disqualification for Coronavirus Job Retention Scheme abuse

Director Disqualified for 10 years by a signed Undertaking of the director

Between 30 September 2020 and 17 May 2021, The Disqualified Director caused the liquidated company to submit inaccurate Coronavirus Job Retention Scheme (CJRS) claims to HMRC. Furthermore, The Disqualified Director caused the liquidated company to falsely submit CJRS claims following the date of liquidation. The liquidated company CJRS was introduced to support businesses in paying their employees during the coronavirus pandemic and the inaccurate and false CJRS claims submitted by The Liquidated Company resulted in the receipt of CJRS payments that it was not entitled to, and in direct breach of the terms of the scheme, not all funds received via the CJRS claims were paid to employees of the company:

• The Liquidated Company former accountant has confirmed that they were no longer instructed to complete Payroll for The Liquidated Company following the period ended 15 September 2020.
• During the period 30 September 2020 to 09 February 2021 the liquidated company submitted 13 CJRS claims to HMRC resulting in CJRS payments of £159,716. The Liquidated Company CJRS claims represented the liquidated company payroll for the period 16 September 2020 to 23 February 2021. HMRC were directed by the liquidated company to make the CJRS payments to the liquidated company Lloyds Bank account 30-96-85 51083860. During the period 16 September 2020 to the date of liquidation, the liquidated company made payments from account 30-96-85 51083860 to employees in respect of salary and expenses totalling £28,494.
• During the period 30 September 2020 to 16 February 2021, The Disqualified Director received payments from the liquidated companybank account 30-96-85 51083860 totalling £58,480 and made payments to the liquidated companytotalling £13,050, resulting in a net outflow of £45,430. During this period The Disqualified Director has stated that company expenditure accounted for £23,016 of the payments he received.
• During the period 30 September 2020 to 11 February 2021 the liquidated companymade payments from bank account 30-96-85 51083860 that do not appear to be for the benefit of the company totalling £67,655. Of the £67,655, £64,755 was annotated ‘Savings’ and £2,900 was annotated ‘C Barrett Final Divorce Settlement’. During this period The Disqualified Director has stated that company expenditure accounted for £19,159 of the payments he received.
• The Disqualified Director has stated that the remaining amount he received was accounted for by an increase to his DLA.
• During the period 19 February 2021 to 24 March 2021, the liquidated company submitted a further 5 CJRS claims to HMRC resulting in CJRS payments of £53,700. The Liquidated Company CJRS claims represented the liquidated company payroll for the period 24 February 2021 to 07 April 2021. HMRC were directed by the liquidated company to make the CJRS payments to Lloyds Bank account 30-96-85 58043168. Lloyds Bank has confirmed to The Liquidated Company Insolvency Service that this account was not operated by the liquidated company, nor was it operated by a limited company.

The liquidated company entered liquidation on 01 April 2021.

Following the date of liquidation, the liquidated company falsely submitted 3 CJRS claims totalling £63,500, with the claims dated 02 April 2021, 19 April 2021 and 17 May 2021. The Liquidated Company claims resulted in CJRS payments of £28,500 as the claim dated 17 May 2021 was denied by HMRC. HMRC were directed by the liquidated company to make the CJRS payments to Lloyds Bank account 30-96-85 58043168. Lloyds Bank has confirmed to The Liquidated Company Insolvency Service that this account was not operated by the liquidated company, nor was it operated by a limited company.

Case 2 – Director disqualification for Bounce Back Loan abuse

Director Disqualified for 13 years by a signed Undertaking of the director

On 12 May 2020, The Disqualified Director caused the liquidated company to provide misleading information to a bank, to obtain a Bounce Back Loan (BBL) of £50,000 when the Liquidated Company was eligible for a Bounce Back Loan of no more than £22,435. In that:

• He was the sole director of the liquidated company from incorporation on 07 October 2013.
• BBLs were limited to 25% of 2019 calendar year turnover, to a maximum loan value of £50,000, and were to be used for the economic benefit of the company.
• Accounting ledgers and bank statements for 2019 show turnover of £89,740, so the company in liquidation was eligible for a Bounce Back Loan of no more than £22,435.
• In the Bounce Back Loan application dated 12 May 2020, he was asked to provide the liquidation company’s 2019 turnover, and misleadingly provided a turnover figure of £200,000, when turnover was actually £89,740 in 2019.
• By providing the misleading information, the Liquidated Company obtained a BBL of £50,000, £27,565 in excess of the BBL amount that it was eligible for.

Case 3 – Director disqualification for Bounce Back Loan offences

Director Disqualified for 9 years by a signed Undertaking of the director

On 5 August 2020 The Disqualified Director caused the liquidated company to obtain a Government backed Bounce Back Loan (BBL) totalling £50,000 to which it was not entitled and failed to use at least some of the funds received for the economic benefit of the liquidated company, in that:

• The Disqualified Director applied for a BBL on behalf of the liquidated company on 5 August 2020. The BBL funds totalling £50,000 were credited to the company’s bank account on 7 August 2020.
• In order for the company to be eligible for a BBL totalling £50,000 its turnover or income for the calendar year of 2019 was required to be at least £200,000.
• Bank analysis of the liquidated company’s only known bank account show that for the calendar year 2019 total credits into the account were £58,993.
• No evidence has been provided by The Disqualified Director that indicates a turnover of at least £200,000 was achieved for 2019.
• Of the £50,000 BBL obtained, £43,200 was transferred into The Disqualified Director’s personal account, £3,435 was transferred to a 3rd party and £2,250 was withdrawn in cash.
• The Disqualified Director stated that £12,000 was for salary, and the remainder for backdated salary and personal use.
• No documentary evidence was provided that substantiates the above claims &/or they were utilised for the economic benefit of the company.

The liquidated company entered liquidation on 8 July 2021 with liabilities of £85,710 including the BBL of £50,000.

Case 4 – Director disqualification for breaching terms of Bounce Back Loan Scheme

Director Disqualified for 8 years by Order of the Court

The Banned Director caused the liquidated company to breach the terms & conditions of the Bounce Back Loan (BBL) Scheme by applying in May 2020 for a Bounce Back Loan of £50,000 when he knew or ought to have known that the liquidated company was only eligible for a loan to a maximum of £19,888. based on the company’s turnover.

Furthermore, The Banned Director has failed to provide accounting records evidencing that the BBL funds were used for the economic benefit of The Liquidated Company, which was a requirement of the BBL scheme, in that:

• The company was incorporated on 18 April 2019 and started trading in May 2019
• The BBL criteria allowed a business to borrow between £2,000.00 and up to 25% of the company turnover (up to a maximum of a £50,000.00 loan).
• Based on the year ending 30 April 2020 accounts, the company turnover was stated as £79,553. meaning the liquidated company was eligible to borrow 25% of the turnover which is a maximum of £19,888. The annual accounts filed at Companies House on 14 April 2021 was signed off by The Banned Director on 30 April 2020.
• On 7 May 2020, The Banned Director applied for a BBL of £50,000 on behalf of the liquidated company. In the application form, The Banned Director declared that the liquidated company’s up to date annual turnover was £200,000.
• On 11 May 2020, a £50,000. BBL was paid into the company bank account
• On 13 May 2020 a cash withdrawal of £60,000. was made from the company bank account . No supporting documentation has been delivered up by The Banned Director to explain the reason behind this payment,
• No records explaining the use of this cash withdrawal has been delivered up.

At the date of the Liquidation on 06 July 2021, a total of £57,751.was owed to creditors, of which £50,000. was owed to the bank relating to the BBL and £7,751.00 claimed by the director.

Case 5 – Director disqualification for Bounce Back Loan offences

Director Disqualified for 9 years by a signed Undertaking of the director

The Disqualified Director caused the liquidated company to overstate its turnover on its application for a Bounce Back Loan (BBL) resulting in the liquidated company receiving £27,803 more than it was entitled to. In that: The BBL / Bounce Back Loan criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan).

• The liquidated company’s financial statements for the year ending 31 August 2019 shows a turnover of £88,790.
• The liquidated company’s financial statements for the extended period 01 September 2019 to 30 November 2020 shows a turnover of £111,236.
• Based on the company’s financial statements for the year ending 31 August 2019, The Liquidated Company would have been entitled to receive £22,197.
• On 11 May 2020, A The Disqualified Director applied for a BBL / Bounce Back Loan of £50,000 on behalf of the company, with the application stating that The Liquidated Company’s turnover for 2019 was £247,000.
• On 12 May 2020, funds of £50,000 were credited to The Liquidated Company’s bank account.

At the date of liquidation on 17 August 2021, a total of £62,750 was due to creditors, including the full amount of the BBL / Bounce Back Loan.

Case 6 – Director disqualification for Bounce Back Loan abuse

Director Disqualified for 10 years by a signed Undertaking of the director

On 09 June 2020 The Banned Director caused the liquidated company to apply for a Bounce Back Loan (BBL) of £50,000 when he knew, or ought to have known, that The Liquidated Company was not eligible for the loan. In that:

• The BBL criteria stated, amongst other criteria, that borrowers were required to declare that:
• the business was established and operating before 1 March 2020 and has been adversely impacted by coronavirus (COVID-19).
• The Liquidated Company was incorporated at Companies House on 06 April 2020 and therefore was not established as at 1 March 2020 and therefore did not meet this criteria;
• The Banned Director applied for a BBL with the liquidated company bank and as a result £50,000 was paid into The Liquidated Company account on 09 June 2020 and The Banned Director did not use the entire loan monies for the economic benefit of the Company.

 At the date of the Liquidation on 07 March 2022 £50,690 was owed to creditors, of which £50,000 was in respect of the BBL.

Case 7 – Director disqualification for Bounce Back Loan abuse

Director Disqualified for 8 years by a signed Undertaking of the director

On 22 May 2020 The Disqualified Director caused the liquidated company to apply for a Bounce Back Loan (BBL) of £50,000 using overstated turnover figures in the loan application form. Consequently, the liquidated company received more monies than it was entitled to from the BBL scheme. In that:

• A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover. The turnover figure required was that for the calendar year 2019. To be eligible to receive the maximum £50,000, a business would have needed to disclose a turnover figure of £200,000
• The liquidated company financial accounts show turnover being £81,678 for the year to 31 May 2019 and turnover of £70,399 for the year to 31 May 2020. The Liquidated Company was not eligible to apply for the maximum amount received as it’s turnover did not meet £200,000
• On 22 May 2020, he caused the liquidated company to obtain a BBL for the maximum amount of £50,000, which it was not entitled to.

 On 15 July 2021, the liquidated company entered into creditors’ voluntary liquidation with liabilities of £50,226 including £50,000 which is owed in respect of the BBL.

Case 8 – Director disqualification for Bounce Back Loan abuse

Director Disqualified for 4 years by a signed Undertaking of the director

Between 10th June 2020 and 6th January 2021 The Disqualified Director caused the dissolved company to breach the conditions of the Bounce Back Loan (BBL) Scheme by applying funds obtained under the scheme to his personal benefit and not for the economic benefit of the dissolved company.

On 8th June 2020 he caused the dissolved company to apply for a Bounce Back Loan (BBL) in the amount of £35,500 which was received on 10th June 2020. He then used the BBL funds for his own personal benefit by actioning the following transactions:

•  Payment of £10,000 on 11th June 2020 to an unknown account with the reference ‘car finance’.
• Payment of £3,270 to an unknown account with the reference ‘debt’
• Transferring of £10,000 on 13th June 2020 to his own personal account under the reference ‘adam amigos’
• Transferring of £10,000 on 14th June 2020 to his own personal account under the reference ‘adam nodle’”

Case 9 – Director disqualification for Bounce Back Loan abuse

Director Disqualified for 11 years by Order of the Court

Between 3 June 2020 and 5 June 2020 The Disqualified Director caused the liquidated company to breach the conditions of the Bounce Back Loan (BBL) Scheme by applying for a BBL of £50,000 and utilising the funds obtained under the scheme for his personal benefit and not for the economic benefit of the liquidated company in that:-

• The liquidated company applied for a Bounce Back Loan and on 3 June 2020 received £50,000 into its bank account. On 5 June 2020, £50,000 was transferred to the director as Fees.
• The Disqualified Director has not provided evidence to show that the monies have been used for the economic benefit of the business.

On 1 February 2021, the liquidated company entered Liquidation and the BBL of £50,000 remained unpaid.

Case 10 – Director disqualification for Bounce Back Loan abuse

Director Disqualified for 8 years by a signed Undertaking of the director

On 18 May 2020, The Disqualified Director caused the liquidated company to obtain a Bounce Back Loan BBL of £50,000 using an overstated turnover figure on the BBL application form, when she knew or ought to have known the maximum BBL The Disqualified Director’s was entitled to was £24,761. In that;

• A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019. Credits in to the liquidated company bank account show turnover of £100,958 for the calendar year 2019.
• On 18 May 2020, she caused the liquidated company to obtain a BBL of £50,000 by overstating the liquidated company turnover as £225,000 on the BBL application form. Based on the turnover figure of £100,958, she knew or ought to have known that the maximum BBL the liquidated company was entitled to was £24,761.

 On 1 March 2022, the liquidated company entered into creditors voluntary liquidation with liabilities of £101,000, £50,000 of which was owed in respect of the BBL.

Case 11 – Director disqualification for Bounce Back Loan offences

Director Disqualified for 7 years by Order of the Court

The Disqualified Director caused the company in liquidation to apply for and obtain two separate Government backed Bounce Back Loans (BBL) totalling £60,000 in breach of the Bounce Back Loans scheme. The second submitted a Bounce Back Loan BBL application contained false or inaccurate information. Thereafter in breach of the Bounce Back Loans scheme neither Bounce Back Loans was used in its entirety for the economic benefit of the business of the Company. In that:

1st Bounce Back Loan

• The liquidated company was incorporated on 19 June 2019
• The liquidated company opened a bank account with Lloyds Bank on 01 April 2020 and applied for a Bounce Back Loan of £10,000 on13 May 2020 in the sum of £10,000.
• The proceeds were paid onto the bank account on 13 May 2020.

2nd Bounce Back Loan

• Contrary to the terms of the BBL scheme the director caused the liquidated company to apply for a 2nd Bounce Back Loan
• The liquidated company opened a further bank account with HSBC on 10 July 2020 and applied for a further Bounce Back Loan in the sum of £50,000.
• The proceeds were received into the HSBC bank account on 12 July 2020

To be eligible for a Bounce Back Loan of £50,000 declared turnover in the BBL application must have been in excess of £200,000 whilst accounts for the year ending 30 June 2020 show turnover of £13,354.

Use of funds

• Between 13 and 14 July 2020, The Disqualified Director withdrew £10,000 out in cash from the Lloyds Bank account.
• Having received credits totalling £20,000 from ‘Company ‘A’ between 05 August 2020 and 14 September 2020, £19,000 was withdrawn out in cash.
• Between 16 July 2020 and 16 September 2020, The Disqualified Director withdrew £39,000 in cash.
• On 05 August 2020 a payment of £10,000 was paid to a third party (the director of Company A), the purpose of which is unknown.
• On 22 August 2020, £10,000 was paid to Company A, the purpose of which is unknown.

Case 12 – Director disqualification for Bounce Back Loan offences

Director Disqualified for 6 years by a signed Undertaking of the director

In her capacity as a director of The Banned Director caused or allowed the liquidated company to make an application for a Government-backed Bounce Back Loan (BBL) of £50,000, when she knew or ought to have known the company was not eligible for the full amount of the BBL, in that:

•  She caused or allowed the liquidated company to overstate its turnover on its application for the BBL
• The BBL scheme rules allowed businesses to receive a loan of up to 25% of their annual turnover, which businesses would self-certify when completing the BBL application
• No company accounts, including management accounts, have been provided to confirm the company’s turnover
• An analysis of the bank statements for the company’s bank account for the period 17 January 2019 to 16 January 2020 shows income into the account of £80,969.34
• However, the BBL application form gives the annual turnover as in excess of £200,000, when the figure should have been £120,000 and consequently the company received £50,000 on 12 May 2020.

 The application form is stated to be signed by the disqualified directors.

Case 13 – Director disqualification for Bounce Back Loan offences

Director Disqualified for 6 years by a signed Undertaking of the director

The Disqualified Director caused liquidated company to breach the conditions of the Bounce Back Loan (BBL) scheme by applying for a BBL of £50,000 when he knew or ought to have known that The Liquidated Company was only eligible for a loan to a maximum of £4,759, based on total sales income received in 2019. Of the £50,000, at least £14,658 was paid out for the personal benefit of The Disqualified Director contrary to the conditions for the use of the BBL. In that:

• The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan). Based on sales income received and banked during 2019, liquidated company was eligible to borrow a maximum of £4,759.
• Theliquidated company ’s financial statements for the year ending 31 May 2019 shows a turnover of £11,964.
• The liquidated company ’s financial statements for the year ending 31 May 2020 shows a turnover of £22,145.
• Total sales income received into The liquidated company ’s bank account throughout 2019 amounted to £19,039.
• In May 2020 The Disqualified Director applied for a BBL of £50,000 on behalf of the company, stating in the loan application that The liquidated company’s turnover for 2019 was £200,000.
• On 19 May 2020, funds of £50,000 were credited to the liquidated company ’s bank account.
• Between 19 May 2020 and 28 December 2020, a total of at least £14,658 of BBL funds were paid for the personal benefit of The Disqualified Director and not for the economic benefit of the company.

At the date of liquidation on 26 May 2021, a total of £61,250 was due to creditors including the full amount of the BBL.

Case 14 – Director disqualification for Bounce Back Loan offences

Director Disqualified for 4 years by a signed Undertaking of the director

Between 13 August 2020 and 13 October 2020, The Disqualified Director caused the liquidated company to breach the conditions of the Bounce Back Loan (BBL) Scheme by applying BBL funds of £50,000 for his own personal benefit, and not for the economic benefit of The Liquidated Company. In that:

• The terms and conditions of the BBL Scheme state that the loan should be used only for the economic benefit of the business.
• On 4 August 2020, funds of £50,000 were credited to the liquidated company ’s bank account in respect of a BBL.
• Between 13 August 2020 to 23 August 2020, payments totalling £27,750 were made from the liquidated company ’s bank account. These payments were described on the statements as Outward Faster Payment The Liquidated Company Payment. No company records have been provided to explain the purpose of these payments.
• On 25 August 2020, two payments totalling £21,900 were made from the liquidated company ’s bank account. These payments were described on the statements as Card Purchase GBR 21 AUG 20 to a third party company in Cheltenham. No company records have been provided to explain the purpose of these payments.
• On 13 October 2020, a payment of £600 was transferred from the liquidated company’s bank account to him personally.

 At the date of the Liquidation on 17 November 2020, a total of at least £69,282 was owed to creditors, of which £50,000 was owed to the bank and £19,282 to a trade creditor.

Case 15 – Director disqualification for Bounce Back Loan offences

Director Disqualified for 5 years by a signed Undertaking of the director

In July 2020 The Disqualified Director caused the liquidated company to provide false information in two applications for Bounce Back Loans (BBLs) of £15,000 each, and failed to use £13,152 of the BBL funds for the economic benefit of the liquidated company, in that:

• The Bounce Back Loan scheme criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover. The funds could only be used to provide economic benefit to the company. A company could only apply for a BBL if it had not applied for a BBL previously with any provider
• Accounts for the year ending 30 June 2019 show a turnover of £38,861. Based on this the liquidated company would have been eligible for a loan of no more than £9,175.
• On the application form for the BBL from Bank A, dated 3 July 2020, The Disqualified Director stated the turnover of the company was £385,000, and the liquidated company obtained a BBL of £15,000.
• On the application for the BBL from Bank B, dated 8 July 2020, The Disqualified Director stated the turnover of the company was £385,000 and The Liquidated Company obtained a further BBL of £15,000.
• Following the receipt of the BBL loan from Bank A of £15,000 on 27 July 2020, £13,152 was used to make a payment in respect of a personal loan in the name of The Disqualified Director. This payment was a misuse of the BBL monies which were intended to be used for the economic benefit of the business.

Creditors at the date of liquidation are £35,417 comprising of the 2 BBL’s totalling £30,000 and £5,417 stated to be owed to the director.

Case 16 – Director disqualification for Bounce Back Loan offences

Director Disqualified for 9 years by a signed Undertaking of the director

The Disqualified Director caused the liquidated company to apply for a Bounce Back Loan (BBL) of £50,000 on 1 June 2020, at a time when he knew, or ought to have known, that the liquidated company did not meet the criteria for that loan, and subsequently caused LC to misuse the BBL funds in that:

• A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year to 31 December 2019. On 1 June 2020 he applied for a BBL on behalf of LC, thereby declaring that the company met the criteria for that loan. The criteria for the applicant included that the company: Must be trading at the time of the application:
• The last accounts filed were extended to 31 January 2020 and discloses losses of £113,379.
• These latest accounts demonstrate that at 31 January 2020, taking account of the assets and liabilities, the company was insolvent, in that it would not be able to meet its obligations.

The Insolvency Service carried out a bank analysis on the bank statements available, from 12 February 2020 and with the exception of a credit from HMRC in April 2020, and 3 payments totalling £2,050 to the company accountant, there are no substantive trading expenses or income in the period from 12 February 2020 to 1 June 2020.

He advised the Liquidator that the company ceased to trade in February 2020.

Must use the funds to provide economic benefits for the business and must not use the funds for personal gain:

• A bank analysis of the company’s Current bank account carried out for the period from February 2020 to June 2021, discloses that following the receipt of the BBL of £50,000 on 1 June 2020, payments totalling £9,477 were paid to him between 1 June 2020 and 2 June 2020. While he has explained to the Liquidator that these funds were used to repay a loan and to pay off an overdraft, he has failed to provide any evidence that these relate to T business expenses.
• On 2 June 2020 a payment of £40,000 was transferred to the company’s savings account then on 4 August 2020, was transferred back to the Current account and subsequently, on the same day, was paid out to him. While he has explained this to the Liquidator as a movement of funds to protect them from a former director, he has failed to repay these sums or provide evidence that these were used for The Liquidated Company business purposes.
• With the exception of 1 payment of £400 to the company accountant, and in the absence of any evidence to the contrary, he has received sums totalling £49,477 of the £50,000 BBL, within 2 days of the BBL being paid into the company account

Must intend and be able to complete timely repayments:

• He applied for and received the BBL of £50,000 at a time when the bank account balance was £96.
• The Insolvency Service carried out a bank analysis on the 2 bank accounts, which were opened in February 2020 and June 2020, and disclose that in the period from February 2020 to June 2020, when the BBL was paid into the account, the income received was £4,709, which includes a credit from HMRC of £3,984 and a payment from the Director of £570.
• While the company would have been due to start repaying the BBL in June 2021, on 18 June 2021 The Liquidated Company entered liquidation with liabilities of £50,000 owed to the bank in relation to the BBL.

Case 17 – Director disqualification for Bounce Back Loan offences

Director Disqualified for 8 years by a signed Undertaking of the director

On 19th May 2020 The Disqualified Director caused the liquidated company to obtain a Government-backed Bounce Back Loan (BBL) of £50,000 by submitting false or knowingly inaccurate information and disbursed the moneys in a manner that was not for the economic benefit of the liquidated company, contrary to the terms of the BBL scheme. In that:

• The company’s turnover for the year ended 30 November 2019, as stated in the Company’s accounts, was £51,421. He has confirmed that turnover figure is accurate.
• In the year ended 30 November 2020 the Company received a total of £75,838.35. He has confirmed that that represented the entirety of the Company’s turnover for that period.
• A company was only entitled to a BBL of up to 25% of its turnover under the BBL scheme so the company’s turnover must have been stated as at least £200,000. The company’s turnover was insufficient to be eligible to receive a BBL in the sum of £50,000.
• On 19 May 2020 £50,000 was received in the company’s bank account, being the proceeds of the BBL.
• On 26 May 2020 the sum of £5,000 was paid to a mortgage account with Halifax mortgages. The Company did not own any property; it is understood that the mortgage related to his own property.
• On 19 June 2020 the sum of £45,000 was paid directly to him via bank transfer.
• He stated that the BBL was used for advertising & salary due to lack of income due to pandemic.

The entirety of the BBL was paid directly to him, or for his benefit. No evidence has been provided to demonstrate that any of the BBL was used for business expenditure.

Case 18 – Director disqualification for Bounce Back Loan offences

Director Disqualified for 10 years by a signed Undertaking of the director

The Disqualified Director caused the liquidated company to overstate its turnover on its application for a Bounce Back Loan (BBL) resulting in the liquidated company receiving £34,850.78 more than it was entitled to and failed to show whether it was used for the economic benefit of the business. In that:

• A business could apply for a BBL of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019. 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 turnover. Businesses were required to use the loan only to provide economic benefit to the business, and not for personal purposes
• the liquidated company was incorporated on 19 July 2018 and submitted dormant accounts for year ending July 2019
• On 17 May 2020, The Disqualified Director applied for a Government BBL of £50,000. In the BBL application form the annual turnover for the Company was stated as £210,457.00. An analysis of the company bank statements for the period 16 August 2019 to 15 May 2020 disclosed turnover as £60,597.20.
• Based on this turnover, the liquidated company was eligible to borrow a maximum of £15,149.22
• On 19 May 2020 the sum of £50,000, being the BBL, was paid into the bank account. Prior to receipt of the BBL the bank account balance stood at £4,782.47 in credit.
• Between 19 May 2020 and 7 August 2020 The Liquidated Company received £17,463 into its bank account giving total available funds of £72,245.47

 In the same period, transfers from the account totalling £ 41,495 were paid to :

• £21,495 to The Disqualified Director
• £10,000 to an individual by a single transfer made on 13 July 2020;
• £10,000 to a further individual by a single transfer made on 15 July 2020.

The Disqualified Director was unable to provide evidence to show that the monies transferred from the company was used for the benefit of the company.

The liquidated company made two repayments towards the BBL totalling £1,873.85.

At liquidation on 25 April 2022 the Company owed its creditors at least £49,530.67. The lender bank submitted a claim for £49,132.20 in respect of the outstanding BBL.

Case 19 – Director disqualification for Bounce Back Loan offences

Director Disqualified for 4 years by a signed Undertaking of the director

Between 18 July 2020 and 8 December 2020, The Disqualified Director provided misleading information to two banks, causing the liquidated company to obtain Bounce Back Loans (BBL’s) of £54,750 when it was eligible for no more than £16,204. This included applying for a second BBL in breach of the BBL scheme. In addition at least £40,550 of the funds obtained were not used for the economic benefit of the company, in that:

Eligibility

• To be eligible for a BBL, a company was required to be engaged in trading or commercial activity in the UK at the date of the BBL application, was carrying on business on 01 March 2020 and had been adversely affected by coronavirus (COVID-19).
• A company could apply for a loan of between £2,000 to £50,000, up to a maximum of 25% of calendar year 2019 turnover. If a company was established after 01 January 2019, the 25% limit was to be applied to estimated annual turnover from the date the business started.
• Where a company borrowed less than 25% of calendar year 2019 turnover as certified on an original BBL application, a company could obtain a BBL Top Up, with the combined value of an original BBL and the Top Up not to exceed 25% of the originally stated turnover, and subject to an overall cap of £50,000.
• Only one BBL could be obtained per company.
• Funds obtained under the BBL scheme were to be used for the economic benefit of the company.

The Liquidated Company

• Bank statements for the liquidated company indicate sales receipts of £64,815 during calendar year 2019, meaning that the liquidated company was eligible for a BBL of no more than £16,204.
• On 18 July 2020, he made application to Bank A on behalf of The Liquidated Company. In his application he also misleadingly stated that the liquidated company’s turnover for calendar year 2019 was £105,000 and requested a BBL of £26,000.
• On 30 July 2020, he caused the liquidated company to apply for a second BBL from Bank B, contrary to the terms of the scheme. He confirmed that the application was the liquidated company’s only application for a BBL, and that the liquidated company was not in the process of applying for or had already received a BBL.
• He misleadingly confirmed that the liquidated company’s turnover was £115,000, and requested a BBL of £24,000, which Bank B paid to The Liquidated Company on 31 July 2020.
• Following receipt of the funds from Bank B on 31 July 2020, £17,000 was transferred to him on the same day, with a further £850 being transferred to him between 08 September 2020 and 01 December 2020.
• On 18 August 2020, he signed a loan agreement in relation to the BBL application to Bank A, with funds of £26,000 being paid from Bank A to The Liquidated Company on 01 October 2020.
• Following receipt of the funds from Bank A, £20,000 was transferred to a company of which he was the sole director.
• On 08 December 2020, he caused the liquidated company to obtain a BBL Top-Up from Bank B of £4,750, of which £2,700 was transferred to him on the same day.
• The Top-Up loan increased the funds obtained by the liquidated company from the two banks to £54,750, more than the £50,000 maximum allowed under the BBL scheme, and £38,546 more than The Liquidated Company was eligible for.
• Of the funds obtained, at least £ 40,550 was transferred to him, or to a company controlled by him, and so was not used for economic benefit of the the liquidated company.

Case 20 – Director disqualification for misleading Bounce Back Loan application

Director Disqualified for 3 years by Order of the Court

Between 3 March 2021 and 24 March 2021, The Disqualified Director provided misleading information to a bank, causing the liquidated company to obtain a BBL of £40,000 when it was not eligible for a BBL. In addition, at least £38,450 of the funds obtained were not used for the economic benefit of the Insolvent Company, in that:

• The liquidated company was incorporated on 12 December 2019. He purchased the company in early 2021 for £400, and he became the sole director of the Insolvent Company on 12 February 2021.
• He stated that the liquidated company never commenced trading. As such, it had no turnover, and was not entitled to a BBL.
• On 03 March 2021, he, on behalf of the liquidated company, applied for a BBL from a Bank B, claiming that turnover for the Insolvent Company was £160,000.
• On 05 March 2021, the Bank B paid £28,000 to the liquidated company. Between 05 and 17 March 2021, £26,950 of the BBL funds were transferred to him.
• On 24 March 2021, Bank B paid a £12,000 BBL Top Up to the liquidated company. Between 24 and 25 March 2021, £11,500 of the BBL funds were transferred to him.

Case 21 – Director disqualification for inaccurate Bounce Back Loan application

Director Disqualified for 9 years by a signed undertaking of the director.

The Disqualified Director caused The Liquidated Company to obtain a Government-backed Bounce Back Loan (BBL) totalling £30,000, received on 27 May 2020, to which it was not fully entitled by submitting false or knowingly inaccurate information and, thereafter, did not use the money obtained in compliance with terms of the scheme, being not for the economic benefit of the Company. In that:

Misapplication/provision of false data

•  The Disqualified Director declared that the Company’s estimated turnover was £120,000 within the BBL application, when in fact the Company’s turnover for the year ended 31 March 2019, as stated in the Company’s accounts was £19,300. The Company’s turnover for the year ended 31 March 2020, as stated in the Company’s accounts was £24,369.
• A Company was entitled to apply for a BBL of up to 25% of its turnover under the BBL scheme. Therefore the Company’s turnover was insufficient to be eligible to receive a BBL in the sum of £30,000.

Misuse of BBL funds obtained

•  On 27 May 2020 £30,000 was received in the Company’s bank account, being the proceeds of the BBL.
• On the same day as the BBL was paid into the Company’s bank account, the sum of £29,000 was transferred directly to The Disqualified Director’s personal bank account.
• Within the Statement of Affairs which he signed on 6 July 2021 The Disqualified Director stated that In June 2020, the company obtained a bounce back loan from the company’s bankers, Santander and this was utilised for car repairs and living expenses.

The BBL was paid directly to The Disqualified Director for his benefit. There is no evidence to demonstrate that the BBL was used in its entirety for business expenditure and economic benefit of the Company which was a Personal Service Vehicle with minimal overheads and expenses.

Case 22 – Director disqualification for acting contrary to the Bounce Back Loan scheme rules

Director Disqualified for 8 years by an undertaking agreed by the director.

The Disqualified Director failed to ensure that The Liquidated Company used £17,150.00 of a Government backed Bounce Back Loan (BBL) of £18,000.00 for the economic benefit of the business, contrary to the terms of the BBL scheme, in that:

• During May 2020 he made an application to a financial institution for a BBL in the amount of £18,000.00 on behalf of the company.
• On 18th May 2020 the company received £18,000.00 into its bank account in relation to the BBL.
• On 17th August 2020 he authorised a payment of £11,700.00 to a third party described as Redundancy.
• Between 22nd May 2020 and 19th February 2021 cash point withdrawals were made totalling £5,450.00 which he describes as being used for the purchase of a motorbike.

On 2nd September 2021 the company was placed into Liquidation when it had assets of £0.01 and creditors totalling £33,419.04 including £18,070.91 pertaining to the BBL.

Case 23 – Director disqualification for overstating turnover figures on Bounce Back application

Director Disqualified for 9 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) of £45,000 on 22 October 2020 using overstated turnover figures in the application form. Consequently, the company received £27,237 more than it was entitled to. In that:

• The company traded from October 2014 until December 2021.
• A business could apply for a BBL of between £2,000 and £50,000 subject to a maximum of 25% of its turnover in 2019.
• The Disqualified Director completed a BBL application stating annual turnover was £182,000
• Annual accounts show that the company had turnover of £71,054 in the year ended 31 October 2019.
• Bank statements for the company’s HSBC bank account show deposits between 1 January 2019 and 31 December 2019 totalled £23,770.
• On 22 October 2020 the company obtained a BBL of £45,000 which was at least £27,237 more than it was entitled to.

On 22 December 2021 the company entered into Creditor’s Voluntary Liquidation with an overall deficiency of £45,160 of which £45,000 was the BBL.

Case 24 – Director disqualification for Bounce Back Loan abuse / accounting record failures

Director Disqualified for 5 years by an undertaking agreed by the director.

On 12 January 2021, The Banned Director caused or allowed The Liquidated Company to apply for a government backed Bounce Back Loan (BBL) totalling £25,000 for which it was not eligible as the company was not trading as at 01 March 2020 as required by the scheme.

The Banned Director did not use the loan in its entirety for the economic benefit of the business, contrary to the term of the BBL. in that:

Eligibility

• The Banned Director was appointed a director of the Company on 11 May 2020. The Company prior to that date had been dormant.
• The Company opened a bank account with the Bank on 02 June 2020.
• On 12 January 2021, the Company applied to the Bank for a BBL of £25,000.
• In order for the Company to be eligible for such a BBL, its turnover was required to be at least £100,000. The Banned Director stated in the application form that the turnover was £200,000.
• No accounts had been filed at Companies House or evidence provided by way of bank statements to show that the Company had traded prior to the BBL application.

Use of funds

•  On 14 January 2021 the sum of £25,000 was credited to the Company’s bank account by Starling Bank.
• Between 19 and 21 January 2021, payments totalling £18,295.23 were made to three finance companies.
• On 19 January 2021 a payment of £2,600 was made in relation to a car purchase.
• Payments totalling £1,956 were made to third parties for reasons unknown.
• £430 was withdrawn out in cash.

 No evidence has been provided to show that any of the BBL proceeds were used for the economic benefit of the Company.

The Banned Director failed to maintain and/or preserve adequate accounting records, or in the alternative, failed to deliver up such accounting records as were maintained or preserved to the liquidator for the period 11 May 2020 and as a result:

• The IP has confirmed that no Company books and records were delivered up to them.
• On 10 March 2022, The Banned Director advised the Liquidator that the majority of the purchase and sale invoices went through a retail site and could not be accessed due to the suspension of the account.
• On 12 June a credit of £15,300 was received from Company A. This was paid out on the same day to Person A.
• On 13 June a credit of £13,250 was received from Company A. This was paid out on the same day to Person A. It is not known what either of the entries relate to and if they were for the benefit of the Company.

Case 25 – Director disqualification for Bounce Back Loan abuse

Director Disqualified for 8 years by Order of the Court.

The Disqualified Director caused The Liquidated Company to apply for and receive a Government backed Bounce Back Loan (BBL) of £50,000 and, within the space of 10 days between 11 May 2020 and 21 May 2020, he received funds totalling at least £17,500 which were not used for the economic benefit of the business but for his personal benefit, in that:

• On 11 May 2020 The Liquidated Company received a £50,000 loan through the Government Guaranteed Bounce Back Loan (BBL) Scheme
• When applying for the BBL he was required to declare that the loan would only be used to provide economic benefit to the business and not for personal purposes
• On 20 May 2020 he caused AL The Liquidated Company to purchase a motor vehicle for £22,440. The liquidator has recovered the full purchase price from him.
• Between 11 May 2020 and 21 May 2020 he withdrew £17,500 from The Liquidated Company’s bank account.
• He has not provided any financial records that would verify payments of £17,500 were used for the economic benefit of The Liquidated Company.
• The BBL remained outstanding in full at the date of liquidation.

 Liabilities at the date of liquidation totalled £60,981.

Case 25 – Director disqualification for overstating turnover on Bounce Back Loan application

Director Disqualified for 8 years by Order at trial.

The Banned Director facilitated The Liquidated Company in applying for a Bounce Back Loan (BBL) in which its turnover was overstated resulting in The Liquidated Company receiving £37,297 more than it was entitled to. In that:

• 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 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 turnover. Businesses were required to use the loan only to provide economic benefit to the business, and not for personal purposes and confirm they have understood the costs associated with repayment of the loan and that they are able and intend to complete timely repayments in future.
• He states that he arranged for The Liquidated Company to be incorporated on 24 April 2019 after being requested to do so by an associate. He agreed to be appointed as the sole director and arranged for a company bank account to be opened in The Liquidated Company’s name.
• On 11 June 2020, The Liquidated Company received £50,000 in respect of the BBL, following declaration of turnover of £350,000 on the application. Between 24 July 2019 and 31 December 2019, receipts into the company’s bank account totalled £21,172. Taking this into account estimated turnover for 2019 would have been £50,812 resulting in The Liquidated Company being entitled to a maximum bounce back loan of £12,703.
• On 21 August 2020 he signed notice DS01 Striking off Application by a company, which was received at Companies House the same day.
• As of 21 August 2020, £50,000, the full amount of the BBL, remained outstanding.

 On 17 November 2020, the company was dissolved, at which time The Liquidated Company’s bankers were creditors for £50,000.

Case 26 – Director disqualification for Bounce Back Loan abuse

Director Disqualified for 4 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company (LC) to breach the conditions of the Governments Bounce Back Loan (BBL) Scheme by overstating LCs annual turnover in order to obtain the maximum loan permissible of £50,000, when he knew or ought to have known the company was not entitled to a BBL;

 The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of £50,000 loan).

 On 04 May 2020 The Disqualified Director applied for a BBL £50,000 on behalf of the Company, stating in the loan application that LC turnover for 2019 was £600,000.

 LC financial information shows turnover of Nil respectively, for the years ended 31 August 2017, 2018, and 2019.

 A BBL of £50,000 was paid to LC and the entire amount of £50,000 remains outstanding at liquidation.

Case 27 – Director disqualification for Bounce Back Loan abuse

Director Disqualified for 4 years by Court Order.

Between 29 June 2020 and 05 March 2021, The Disqualified Director caused The Liquidated Company to misuse funds obtained through a Government backed Bounce Back Loan (BBL) of £30,000 by not using the funds for the economic benefit of The Liquidated Company, contrary to the terms of the loan. In that:

1. He states that he became aware in June 2020 that The Liquidated Company’s contract with its sole customer was due to end on 07 August 2020.
2. On 28 June 2020, he applied for a BBL of £30,000 on behalf of The Liquidated Company. He has stated that the sole purpose of obtaining the BBL was so that he could invest the funds in foreign exchange trading. The BBL funds of £30,000 were paid into The Liquidated Company’s bank account on 29 June 2020.
3. Between 29 June 2020 and 05 March 2021, The Liquidated Company made net payments of £78,604 to a foreign exchange trading platform provider (the provider) with whom he held an account in his personal name. He states that those payments included the BBL funds of £30,000 received by The Liquidated Company.
4. The Liquidator has treated those payments as personal payments to him and has included them in his calculation of the balance on his director’s loan account at the date of liquidation. The Liquidator has calculated that his DLA was overdrawn by £173,630 at the date of liquidation.

Case 28 – Director disqualification for False Bounce Back Loan application

Director Disqualified for 7 years by Order of the Court.

On or around 01 June 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company (EVS) to falsely apply for a Bounce Back Loan (BBL) when it was not actively trading, and overstated the turnover of the company to enable it to apply for the maximum loan amount of £50,000. He also caused LC to breach the terms of the BBL scheme as £45,169 of the BBL was paid to him personally and not used for the economic benefit of LC and it would not be in a position to make timely repayments in the future.

• Under the BBL scheme, businesses were able to apply for a BBL if they were engaged in trading or commercial activity in the UK at the date of the application, were carrying on business on 01 March 2020 and had been adversely affected by Covid. They were also required to confirm they had understood the costs associated with repayment of the loan and they were able and intended to complete timely repayments in the future.
• Businesses incorporated after 1st January 2019 were asked to estimate their turnover. LC was incorporated on 06 March 2019 and he declared a turnover of £210,000.
• Between incorporation and the date of the BBL application receipts into LC business bank account totalled £51,417, of which £45,242 were from either him personally or from associated companies. In the event that these receipts were legitimate business turnover, LC would only have been entitled to a BBL of £12,854.
• Between 18 October 2019 and 02 June 2020, the date the BBL funds were received, the only receipts into LC bank account (other than cashback) were £462 paid in by him, indicating that LC was not trading at 01 March 2020 nor at the date of the BBL application.
• LC received a BBL of £50,000 on 02 June 2020.
• Between 03 June 2020 and 23 July 2020, a net total of £45,169 of the BBL was transferred to him.

 LC was compulsorily dissolved on 07 December 2021 and the BBL of £50,000 remains outstanding.

Case 29 – Director disqualification for breaching terms of Bounce Back Loan application

Director Disqualified for 10 years by a signed undertaking of the director.

On 18 May 2020 The Disqualified Director caused The Liquidated Company to pay £50,000 from a Bounce Back Loan (BBL), received by Liquidated Company on the same day, to himself. The payment made to The Disqualified Director breached the terms of a BBL which was to provide economic benefit to the business.

Liquidated Company was granted a BBL of £50,000 which was received into its bank account on 18 May 2020.

On the same day, The Disqualified Director made a single £50,000 payment to his personal account.

Such use of a BBL was in breach of BBL terms as this payment did not provide economic benefit to Liquidated Company.”

Case 30 – Director disqualification for False Representation on a Bounce Back Loan Application

Director Disqualified for 9 years by a director signed undertaking.

On or around 07 October 2020 The Disqualified Director caused The Liquidated Company to make false representations about the company’s turnover in an application for a Government backed Bounce Back Loan (BBL) totalling £50,000 which was materially greater than that which the Company was eligible to apply for and failed to use the BBL for the economic benefit of the company, in that:

Amount of BBL

• the BBL guidelines state that a company could apply for a loan of up to 25% of its annual turnover up to a maximum of £50,000. Therefore, to qualify for a BBL of £50,000 a company’s turnover should be more than £200,000.
• On 16 July 2021 The Disqualified Director signed a report entitled Financial Information to Creditors and Members of AJ The Liquidated Company Pursuant to Statement of Insolvency Practise 6 (the Report). The Report confirmed that the Company’s turnover for the years ended 31 January 2018, 2019 and 2020 was £31,437, £34,628, and £38,614 respectively.

Use of BBL funds

• Between 14 October 2020 and 07 June 2021, the total sum of the BBL was transferred to The Disqualified Director and was not used for the economic benefit of the Company.
• No repayments were made to the bounce back loan provider, and the outstanding sum due at liquidation as shown in the Statement of Affairs was £50,000.

Case 35 – Director disqualification for inaccurate declarations on BBL application

Director Disqualified for 3 years by a signed undertaking of the director.

On 09 July 2020, The Disqualified Director caused The Liquidated Company, to obtain a Government backed Bounce Back Loan (BBL) totalling £50,000 for which it was not eligible by including false information relating to turnover within the BBL application.

The BBL was paid into the Company’s bank account on 09 July 2020 and was not used in its entirety for the economic benefit of the Company.

False/inaccurate declarations

•  The BBL Scheme allowed businesses to borrow from between £2,000 up to 25% of a business’ turnover for the calendar year ended 31 December 2019 with the maximum loan available being £50,000.
• The BBL was applied for on behalf of the Company in his name and the BBL application stated that the Company’s turnover was £350,000.
• The Company’s accounts for the year ended 31 January 2019 and 31 January 2020 record a turnover of only £39,618 and £12,977 respectively.

An analysis of the Company’s bank statements records income/receipts of £26,523.52 during calendar year 2019.

Use of moneys obtained

•  On 09 July 2020, the BBL funds of £50,000 were paid into the Company’s bank account. Prior to receipt of the BBL, the bank balances on each of the Company’s bank accounts were £17.32 and £401.09, respectively.

 In the 2 months following receipt of the BBL funds, sums totalling £36,626.91 were withdrawn/paid out of the Company’s bank account, including:

• Payments to him totalling £14,438.52;
• Cash withdrawals totalling £5,560;
• A payment for £9,500 dated 03 August 2020 under reference Pershore Town FC;
• A payment for £4,887.03 dated 04 August 2020 under reference C& GP XXXXXXXXXXXX5287; and
• Payments to public houses and supermarkets totalling £2,241.36.

 An additional £12,999.98 was expended within 12 months of receipt of the BBL including:

• Further payments to him totalling £7,000;
• Cash withdrawals totalling £1,000; and
• A payment for £4,999.98 dated 01 February 2021 under reference buy.coinitix.com Estonia.

Therefore, in total, transactions totalling £49,626.89 were paid out within 12 months of receipt of the BBL and the BBL remained outstanding in the total sum of £50,000 on liquidation.

Case 36 – Director disqualification for over stating turnover on a BBL application

Director Disqualified for 10 years by a signed undertaking of the director / an undertaking agreed by the director / a director signed undertaking.

The Disqualified Director caused or allowed the Liquidated Company to overstate its turnover in its application for a Bounce Back Loan (BBL) resulting in the Liquidated Company receiving a maximum Bounce Back Loan of £50,000 on the 01 June 2020 which it was not eligible for. In that:

•  A business could apply for a BBL loan of between £2,000 to £50,000 up to a maximum of 25% of their turnover for calendar year 2019, or where it was incorporated after January 2019, estimated turnover could be used.

•  On 29 May 2020, The Disqualified Director signed the Bounce Back Loan application form, stating the Liquidated Company had a turnover of £200,000 in 2019, when bank statements show the Liquidated Company turnover for 2019 was £10,288, causing the insolvent company to receive more than it was entitled to.

 At the date of liquidation, the Liquidated Company owed creditors £58,351, of which £50,000 was owed in respect of the BBL

• The Disqualified Director caused or allowed the Liquidated Company to overstate its turnover in its application for a Bounce Back Loan resulting in the Liquidated Company receiving a BBL of £50,000 on the 01 June 2020 which it was not eligible for. In that:
• A business could apply for a Bounce Back Loan / BBL loan of between £2,000 to £50,000 up to a maximum of 25% of their turnover for calendar year 2019, or where it was incorporated after January 2019, estimated turnover could be used.
• On 28 May 2020, a BBL application was made stating the Liquidated Company turnover was £200,000 resulting in the Liquidated Company receiving the maximum BBL / Bounce Back Loan loan of £50,000, which is more than the Liquidated Company was entitled to.
• The Liquidated Company’s bank statements for April 2019 to December 2019 show turnover was £25,122. The Disqualified Director has failed to provide any evidence to show how turnover was calculated.

 At liquidation, the £50,000 Bounce Back Loan remains unpaid

Case 37 – Director disqualification for Bounce Back Loan Offences

Director Disqualified for 9 years by director signed undertaking.

On 11 June 2020 The Disqualified Director caused the Liquidated Company to obtain a Bounce Back Loan (BBL) of £40,000 using overstated turnover figures in the loan application form. Consequently, the Liquidated Company received £31,905 more monies than it was entitled to from the BBL scheme. In that:

 On 11 June 2020 the Liquidated Company obtained a BBL of £40,000 despite its turnover for the year ending 30 November 2019 being only £32,380 entitling the Liquidated Company to a BBL of £8, 095

•  A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019. The company would have been due a maximum loan of £8,095.
• On 9 August 2022 the Liquidated Company entered into creditors’ voluntary liquidation with liabilities of £40,001 including £40,000 which is owed in respect of the BBL.

Case 38 – Director disqualification for improper application for the BBL scheme

Director Disqualified for 6 years by an undertaking agreed by the director.

The Banned Director a director of The Insolvent Company caused or allowed The Insolvent Company to apply for a Bounce Back Loan (BBL) of £50,000 at a time when she knew or ought to have known that the company was insolvent and had no prospect of repaying it.

• The Insolvent Company received the funds on 03 July 2020 and used the funds contrary to the terms of the bounce back loan scheme by making payments totalling £50,000 on the same day to her in a further reduction of the balance due on her director loan account (DLA).
• The Insolvent Company traded as a franchised gymnasium and fitness centre.
• The Insolvent Company was incorporated on 22 September 2016 with The Banned Director as the sole director. Her husband director was appointed a joint director on 09 April 2018.
• The Insolvent Company ceased trading on, or around 30 July 2020.
• The last year end accounts year ended 30 September 2019 signed by her husband on 29 June 2020 showed The Insolvent Company was £26,435 balance sheet insolvent.
• The Insolvent Company’s business plan required a monthly membership of 950 clients. At its peak of trading the company had only 500 members, which had fallen to 350 just prior to March 2020.
• Memberships fees generated an income totalling only £460 between 23 March 2020 and the end of July 2020. The Insolvent Company’s only other income from 23 March 2020 was HMRC reclaims totalling £17,702
• The DLA in the year- end 30 September 2019 accounts showed BD to be a creditor of The Insolvent Company for £108,276. By 02 July 2020 the DLA owed had reduced to £82,300. The BBL was applied in its entirety to reducing the DLA to £32,115.
• In the period 03 July 2020 to 30 July 2020 payments to other creditors totalled £4,166.

Discounting the DLA, other creditors in the period from 30 September 2019 to liquidation increased from £219,872 to £230,299.

Case 39 – Director disqualification for breach of the conditions of the Bounce Back Loan Scheme

Director Disqualified for 6 years by Court Order at trial.

The Disqualified Director caused The Liquidated Company to breach the conditions of the Bounce Back Loan (BBL) Scheme by applying for a BBL of £50,000 when he knew or ought to have known that The Liquidated Company was only eligible for a loan to a maximum of £15,263, based on turnover according to accounts for the years ended 31 May 2019 and 31 May 2020.

• Of the £50,000 The Liquidated Company received, £50,000 was paid out to three connected parties contrary to the conditions for the use of a BBL. In that:
• The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover, with a maximum loan of £50,000 for the purpose of a business carried on or intended to be carried on by the applicant.
• The Disqualified Director applied for a BBL of £50,000 for The Liquidated Company stating the estimated turnover as £200,000 in the application.
• The Accounts for the year ended 31 May 2019 showed a turnover of £82,975. This equates to £6,915 a month and so for the period 1 January 2019 to 31 May 2019 the turnover would be taken as £34,575.
• The Accounts for the year ended 31 May 2020 showed a turnover of £45,391. This equates to £3,783 a month and so for the period 1 June 2019 to 31 December 2019 the turnover would be £26,481.
• A total sum of £61,056 was therefore the maximum allowed to be considered for the company’s turnover for 2019.
• The Liquidated Company was eligible to borrow a maximum of £15,263.
• On 15 May 2020, BBL funds of £50,000 were paid into The Liquidated Company’ bank account.
• On 22 May 2020 two payments totalling £30,000 were paid out of The Liquidated Company’ bank account to two connected parties.
• On 8 June 2002 a payment of £20,000 was paid out of The Liquidated Company’ bank account to a further connected party.

At the date of the Liquidation on 22 November 2021, a total of £74,236 was owed to creditors, of which at least £50,034 to a bank in respect of the BBL and £24,202 to trade creditors.

Case 40 – Director disqualification for breaching the BBL scheme

Director Disqualified for 10 years by a director signed undertaking.

On 22 May 2020 The Disqualified Director caused The Liquidated Company to breach the conditions of the bounce back loan scheme by causing LC to obtain a BBL of £36,000 when LC had already received a previous BBL of £36,000, in that:

• The Disqualified Director was a director of LC from 07 August 2012;

• It was a condition of the BBL scheme that the business is not already in the process of applying for or has not already received a BBL scheme facility;

• On 22 May 2020, LC obtained a BBL of £36,000;

• On the same date, The Disqualified Director caused LC to apply for a 2nd BBL of £36,000;

• On 03 June 2020, the sum of £36,000 was credited to LC’s bank account;

• Between 05 June and 15 June 2020, the total sum of £35,500 was transferred out of LC’s bank account;

• The expenditure of those funds has not been explained;

The 2nd BBL was not included in LC’s filed accounts for the year ended 31 August 2020.

Case 41 – Director disqualification for missuse of BBL funds

Director Disqualified for 4 years by a signed undertaking of the director.

On 07 December 2020 The Disqualified Director caused The Liquidated Company to obtain a Government-backed Bounce Back Loan (BBL) of £16,500. The terms of that loan were that the monies would be entirely used for the economic benefit of LC. Contrary to the terms of the BBL, he dissipated the entirety of the BBL funds in payments to himself. In that:

• The bank balance of LC, on 01 December 2020, immediately before receipt of the BBL was £0.00.
• The BBL of £16,500 was received by LC on 07 December 2020.
• On 07 December 2020 he transferred £14,000 to himself.
• On 08 December 2020 a payment of £2,100 was received into the company bank account, from a client.
• On 08 December 2020 he transferred £1,600 to himself
• On 11 December 2020 he transferred a further £3,000 to himself. At this point, the bank account for LC was at £0.00.
• LC ceased to trade on 30 April 2021.

The amount owed to creditors at the date of liquidation as per the Statement of Affairs totalled £56,672.00. The debts to creditors related to the BBL, a debt to HMRC totalling £9,749.39 and a debt owed to him totalling £3,000.

Case 42 – Director disqualification for improper application for the BBL scheme

Director Disqualified for 6 years by a signed undertaking of the director.

The Banned Director allowed The Insolvent Company to apply for a Bounce Back Loan of £50,000 on 21 May 2020 when she knew or ought to have known that The Insolvent Company was not eligible for the loan, with the funds being used for the benefit of a connected company. In that:

• On 4 November 2019 accounts were prepared for the period up to 31 October 2018 showing the company as dormant. The Banned Director has stated that the company remained dormant through 2019.
• On 21 May 2020 a Bounce Back Loan was applied for in the name of The Insolvent Company. A declaration was made that The Insolvent Company met the eligibility criteria for the loan. The company turnover declared on the application form for 2019 was £320,000.
• On 21 May 2020 £50,000 loan was paid into The Insolvent Company’s bank account.
• On 22 May 2020 £50,000 was transferred to a connected company.
• To be eligible for a Bounce Back Loan, The Insolvent Company was required to have been engaged in trading or commercial activity on 01 March 2020 but in the Report to Creditors dated 1 September 2020 The Banned Director claimed that trading was conducted through The Insolvent Company’s bank account for a connected company and payments received for goods were transferred to the connected company. All trading transactions were accounted for in the connected company’s accounting ledgers.
• The Insolvent Company was not eligible for the Bounce Back Loan Scheme, as it had no trading turnover, was not engaged in trading or commercial activity at the date of the application, and the loan was not used to provide economic benefit to the business.

At the time of liquidation, the Bounce Back Loan of £50,000 had not been repaid

Case 43 – Director disqualification for overstating turnover on a BBL application

Director Disqualified for 9 years by an undertaking agreed by the director.

The Disqualified Director caused  The Liquidated Company to receive a Bounce Back Loan (BBL) of £50,000 on 03 July 2020 using overstated turnover figures in the application form. Consequently, LC received more monies than it was entitled to from the BBL scheme, in that:

• On 03 July 2020 LC obtained a BBL of £50,000 which it was not entitled to. A

• Business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019. In the application LC turnover was stated as £295,785.
• Accounting records provided by LCs accountants show that LC’s turnover for YE 31.05.19 was £41,787 and for YE 31.05.20 was £45,483.
• Bank Records show LC’s turnover for calendar year ending 31.12.19 was £42,215. Therefore, the maximum BBL allowed was £10,554. As a result, LC received £39,446 more than it was entitled.
• Bank and Company Records show that £32,000 of the BBL was used to pay subcontractors and £18,000 was retained by The Disqualified Director as wages.

On 24 August 2021 LC entered liquidation with total liabilities of £50,000 which consisted entirely of the BBL.

Case 44 – Director disqualification for breaching the conditions of the Bounce Back Loan Scheme

Director Disqualified for 8 years by a signed undertaking of the director.

The Disqualified Director caused The Liquidated Company to breach the conditions of the Bounce Back Loan (BBL) Scheme by overstating LC’ annual turnover to obtain a larger loan, of £46,250, than LC was eligible for. In that:

• Small and medium sized business could apply for a BBL of between £2,000 and 25% of their turnover up to a maximum of £50,000.
• On 26 August 2020, The Disqualified Director applied for a BBL of £46,250 on behalf of LC, stating in the loan application that LC’ turnover in the calendar year for 2019 was £185,000, which was greater than LC’ actual turnover.
• On 01 September 2020 the BBL funds of £46,250 were credited to LC’ current bank account.

At the date of the Liquidation on 25 August 2021, a total of £55,423 was owed to creditors, of which £46,250 is in respect of the BBL.

Case 45 – Director disqualification for breaching the conditions of the BBL Scheme

Director Disqualified for 6 years by a director signed undertaking.

On 11 November 2020 The Disqualified Director (The Disqualified Director) obtained a Government backed Bounce Back Loan (BBL) on behalf of The Liquidated Company (‘LC’) totalling £32,500 and did not use it in its entirety for the economic benefit of the business, contrary to the terms of the BBL. In that:

•  Prior to obtaining the top up BBL on the 11 November 2020, on 11 May 2020 she obtained a BBL of £10,000.
• On 13 November 2020 the BBL top up sum of £32,500 was received into the Company’s bank account. Prior to receipt of the loan the account balance stood at £3,832.33 in credit.
• On 17 November 2020 she transferred the sum of £30,000 into her personal bank account.
• She has advised the liquidator that this was used to her benefit to repay a personal loan against her property.

 At liquidation the total creditors are estimated at £180,133.88, of which £42,500 is owed to Lloyds bank.

Case 46 – Director disqualification for improper application to the Bounce Back Loan Scheme

Director Disqualified for 11 years by a director signed undertaking.

Prior to 25 August 2020 The Company Director caused The Insolvent Company apply for and obtain a Government backed Bounce Back Loan (BBL) totalling £40,000 for which the Company was not eligible by providing false or knowing inaccurate information and did not use the BBL moneys in their entirety for the economic benefit of the Company, contrary to the terms of the BBL. In that:

•  He purchased the Company (previously known as the Company) on 01 June 2020 for £100 in the knowledge that the Company was dormant;
• on 03 August 2020 he opened a bank account with Starling Bank in which £50 was deposited from an associated company;
• prior to 25 August 2020 he applied for a BBL of £40,000 from Starling Bank in the knowledge that the Company did not meet the necessary criteria in that the turnover was not £160,000 and the Company had not been established before 01 March 2020 and as a result had not been adversely impacted by coronavirus
• on 25 August 2020 the sum of £40,000 was deposited to the Company’s bank account being the BBL;
• bank statements show that, excluding the BBL, the only credits received into the Company’s bank account amounted to £757.00 deposited from an associated company;

Use of BBL funds

•  between 05 September 2020 and 02 December 2020 he transferred the sum of £7,728.48 to connected party with the narrative ‘wages’ even though the Company had no employees;

•  between 27 September 2020 and 30 October 2020 he transferred the sum of £10,700 to ITR, a company under the control and ownership of connected party;

•  between 24 September 2020 and 01 October 2020 he made payments totalling £13,900 to a third party (3rd Party) for services unknown;
• between 08 September 2020 and 19 October 2020 he withdrew £4,500 in cash;
• between 18 August 2020 and 04 November 2020 he made payments totalling £2,401.11 for his own personal use;

He failed to ensure that the Company maintained, preserved and/or delivered up adequate accounting records. In that:

•  He has not delivered up books and records to third party of B the Liquidator who had written to him on 18 October 2021 requesting that all records be delivered up to him within 7 days as per the letter of engagement. A further letter was sent by the Liquidator dated 02 December 2021 requesting that records be delivered up to them;
• on 09 December 2021, the Liquidator wrote to him requesting completion of a questionnaire and that all records be delivered. A reminder letter was sent on 01 February and 09 February 2022 but he has not responded nor provide any information or documentation;

in the absence of the Company records, it has not been possible to determine:

•  the true asset position of the Company, whether all creditors have been accounted for, whether all creditors have been treated fairly and if the Company’s HMRC liabilities were properly accounted for;

•  whether all creditors have been accounted for;

•  whether all creditors have been treated fairly;

•  the amounts received by or due from him or any entity connected with him;

•  the full and true extent of the Company’s HMRC liabilities and if the Company had registered for VAT and PAYE;

•  the recipients of and reasons for cash withdrawals totalling £4,500 between 08 September and 19 October 2019;
• the reason for payments totalling £13,900 to 3rd Party between 24 September 2020 and 01 October 2020;
• the reason for payments totalling £10,700 to Integrated Resources Ltd;
• the reason for the payments totalling £7,728.48 to connected party;
• the accuracy of the Company Statement if Affairs; and
• the cause of the Company failure.

Case 47 – Director disqualification for breaching the conditions of the Bounce Back Loan Scheme

Director Disqualified for 8 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) totalling £31,000 that he knew or ought to have known that The Liquidated Company was not eligible for. Of these funds £31,000 was transferred to his personal bank account and was therefore not used for the economic benefit of the company In that:

•  He was director of The Liquidated Company from incorporation on 6 June 2017.
• Part of the BBL eligibility criteria was that the company must be actively trading as at 1 March 2020.
• According to bank activity The Liquidated Company had ceased to trade by the beginning of November 2019.
• On 16 June 2020 £31,000 was credited to The Liquidated Company’s bank account.
•  On 9 July 2020 £31,000 was transferred to his bank account.
• The terms of the BBL stated that its intended purpose was to provide economic benefit to the business and not for personal purposes. He has been unable to show these payments were for the economic benefit of the company.

 At the date of liquidation on 9 July 2021 the BBL remained unpaid.

Case 48 – Director disqualification for breaching the conditions of the Bounce Back Loan Scheme

Director Disqualified for 5 years by a director signed undertaking.

Between 6 July 2020 and 3 September 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to breach the conditions of a Bounce Back Loan (BBL) by misusing at least £7,472 of a £20,000 BBL for his own personal benefit and not for the economic benefit of LC. In that:

• On 05 July 2020 LC business bank account had a nil balance. LC received a BBL of £20,000 on 06 July 2020. Between 06 July 2020 and 03 September 2020 total income including the BBL monies into LC two bank accounts was £27,728.

• Between 6 July 2020 and 3 September 2020 The Disqualified Director withdrew a total of £23,200 for his own benefit, including one payment of £18,000 on 3 September 2020, compared with a total of £12,150 withdrawn by The Disqualified Director in the previous three month period 1 April 2020 to 30 June 2020.

• Consequently, of the £23,200 withdrawn after 6 July 2020 at least £7,472 was funded directly by the BBL funds as opposed to by income from other sources.

The Disqualified Director completed an application to dissolve LC on 26 September 2020 and the company was dissolved on 22 December 2020.

Case 49 – Director disqualification for misuse of BBL funds

Director Disqualified for 5 years by an undertaking agreed by the director.

On 10 June 2020, The Disqualified Director caused The Liquidated Company to apply for a Government backed bounce back loan totalling £25,000 (the ‘loan monies’) and did not use the entire loan monies for the economic benefit of the Company, contrary to the terms of the loan. In that:

•  On 11 June 2020, the loan monies of £25,000 were received by the Company.
• After receipt of the loan monies, payments totalling £12,000 were made to The Disqualified Director from the Company’s bank account which he confirmed were used to settle his personal overdraft and to repay a personal credit card debt.

No repayments were made to the bounce back loan provider, to whom the outstanding sum due shown in the Statement of Affairs was £25,000.

Case 50- Director disqualification for incomplete accounting of the Bounce Back Loan Scheme

Director Disqualified for 5 years by a signed undertaking of the director.

The Disqualified Director failed to ensure that The Liquidated Company maintained, preserved or in the alternative delivered up to the liquidator accounting records to account for the transactions of the company. Due to the absence of complete accounting records:

• The last set of accounts for the company were produced to 28 February 2018, bank statements from 1 April 2018 show available funds of at least £1,670,300 and debits on the bank account of at least £1,672,928. No accounting records have been delivered up to account for the expenditure of those funds.
• LC was not registered for VAT yet had bank receipts in excess of the VAT threshold, without the company accounting records it is not possible to determine whether or not the company should have been registered for VAT and whether there are any amounts outstanding to HMRC.
• The last accounts for LC show turnover of £54,076 yet the company obtained a BBL of £50,000. Bank statements show receipts in excess of the £200,000 required to obtain a £50,000 BBL but accounting records are not available to show whether those bank receipts were company turnover.
• LC obtained a BBL of £50,000 that was received into the company bank account on 9 June 2020. No accounting records have been delivered up to account for the expenditure of those funds.
• LC bought and sold vehicles and also rented out vehicles. DD has stated that the BBL monies were used to purchase vehicles but DD failed to maintain, preserve or deliver up accounting records to account for assets owned by LC or for disposal of any assets owned by LC including motor vehicles.

Case 51- Director disqualification for breaching the conditions of the BBL Scheme

Director Disqualified for 5 years by a signed undertaking of the director.

In June 2020, The Disqualified Director on behalf of The Liquidated Company, applied for and obtained a Government backed Bounce Back Loan (BBL) in the sum of £30,000. Thereafter the BBL was paid into the Company’s bank account on 22 June 2020 and was not used in its entirety for the economic benefit of the business, in that:

•  The Liquidated Company applied to Santander for a BBL in the sum of £30,000 in June 2020.
• The BBL was paid into The Liquidated Company’s current account on 22 June 2020. The balance on the current account as at 22 June 2020 was £78.45. The balance on its savings account was £8,435.36.
• The Liquidated Company continued to have a steady income throughout 2020 with the only associated costs being The Disqualified Director’s remuneration, vehicle running costs and minimal expenses. The Disqualified Director’s salary was set at the National Insurance threshold so no PAYE or NIC payments fell due.
• In the month following receipt of the BBL, and specifically between 23 June 2020 and 17 July 2020, The Disqualified Director received payments from The Liquidated Company’s current account in the total sum of £17,760.
• The Disqualified Director has failed to evidence that these payments were for the economic benefit of the company.

 At the date of liquidation the BBL remained unpaid.

Case 52- Director disqualification for breaching the conditions of the Bounce Back Loan

Director Disqualified for 3 years by an undertaking agreed by the director.

Between 19 May 2020 and the date of Liquidation on 14 October 2020, The Banned Director removed funds from The Liquidated Company, which ABM had received from a Coronavirus Busienss Interruption Loan (CBIL).

• These funds, totalling £48,048, were used for his own personal benefit rather than for legitimate business expenditure, and were removed at a time when The Banned Director already owed £88,145 to ABM, in relation to a Director’s Loan Account (DLA).
• The Liquidated Company was subsequently unable to discharge its creditors in full, resulting in a total amount owing to creditors in the Liquidation of £139,143 and increasing the DLA owing to The Liquidated Company to £136,193, in that:
• The Liquidated Company bank statements show that on 19 May 2020, a £70,000 CBIL was credited to The Liquidated Company bank account which resulted in a credit balance of £60,697. At this point, creditors excluding the CBIL were at least £84,172 and the outstanding DLA was £88,145.
• Between 19 May 2020 and 14 October 2020, ABM did not generate sales, had no income other than the receipt of the CBIL and there was no reasonable expectation that The Liquidated Company would receive sufficient income to enable it to discharge its creditors in the period during which The Banned Director applied the majority of the CBIL monies for his personal benefit.
• The banned director’s bank statements show that between 19 May 2020 and 14 October 2020 The Banned Director received £57,325 from the bank account of The Liquidated Company, of which £9,277 appears to have subsequently been used for legitimate business expenditure, resulting in £48,048 being added to the existing unpaid DLA of £88,145.
• In consideration of this, the DLA increased by £48,048 from £88,145 to £136193.
• At Liquidation, The Liquidated Company had liabilities of £139,143, and its only asset was the DLA of £136,193 owed to The Liquidated Company by The Banned Director.

 The Liquidator subsequently pursued The Banned Director for repayment of the DLA he owed to The Liquidated Company and has received payments from The Banned Director totalling £18,812, meaning that there was a shortfall in settlement of the DLA of £117,381.

Case 53 – Director disqualification for breaching the conditions of the BBL and Bounce Back Loan Top-Up Scheme

Director Disqualified for 3 years by order at trial.

The Company Director caused The Dissolved Company to i) fraudulently apply for a Bounce Back Loan (BBL) of £15,000 on 09 July 2020 when it had ceased trading and ii) fraudulently apply for a BBL top-up of £5,000 on 12 November 2020 when the company was already dissolved. The Company Director failed to ensure that the BBL funds were used for the economic benefit of the Company. The Company Director also failed to notify the relevant parties of the dissolution, as required by Section 1006 of the Companies Act 2006.

•  Under the BBL scheme, businesses were able to apply for a BBL if they were engaged in trading or commercial activity in the UK at the date of the application, were carrying on business on 01 March 2020 and had been adversely affected by Covid.
• The BBL funds were to be used for the economic benefit of the business and not for personal purposes.
• A top-up BBL application was allowed where a company had not originally applied for the maximum BBL available to them. The application also contained a declaration that the company had not applied for, nor was in the process of applying for, dissolution.
• Analysis of The Dissolved Company’ bank account shows that the last income payment was received on 9th September 2019.
• On 23 March 2020 The Company Director completed the application to dissolve The Dissolved Company.
• The Company Director applied for the original BBL of £15,000 on 09 July 2020 which was received on 13 July 2020.
• On the same day that the BBL funds were received, they were transferred to another bank account, and this was not for the economic benefit of The Dissolved Company. The Dissolved Company was dissolved on 20 October 2020.
• The Company Director applied for the BBL top-up of £5,000 on 12 November 2020.
• On the same day that the BBL funds were received, they were transferred to another bank account, and this was not for the economic benefit of The Dissolved Company.
• Section 1006 of the Companies Act 2006 requires the company to notify all interested parties of their intention to be dissolved.
• The Company Director failed to notify the bank of his intention to dissolve The Dissolved Company, which denied them the opportunity to object to this action.

 On 20 October 2020 The Dissolved Company was dissolved and of £19,999 of the BBL remains outstanding.

Case 54 – Director disqualification for improper use of the BBL Scheme

Director Disqualified for 5 years by a signed undertaking of the director.

On 19 November 2020 The Disqualified Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) of £50,000 by overstating The Liquidated Company’s turnover, when the maximum BBL amount The Liquidated Company was entitled to was £8,532. In that:

• Under the Bounce Back Loan scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of 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 turnover.
• The Liquidated Company was incorporated on 19 June 2018.
• The Liquidated Company bank statements show income received in to the account in calendar year 2019 was £34,130. Based on this, the maximum BBL The Liquidated Company could apply for was £8,532.
• On 19 November 2020 The Disqualified Director applied for a bounce back loan of £50,000 on behalf of The Liquidated Company , overstating The Liquidated Company’s turnover for the 2019 calendar year as £212,500.

• The Liquidated Company received the BBL funds of £50,000 on 23 November 2020. The Liquidated Company received £41,468 more than it was entitled to.

At liquidation The Liquidated Company had declared liabilities of £53,715 which include £50,000 in respect of the BBL.

Case 61 – Director disqualification for overstating turnover on a Bouce Back Loan application

Director Disqualified for X years by Order of the Court / Court Order / Order at trial.

Director Disqualified for 9 years by a director signed undertaking.

On 7 August 2020 The Disqualified Director caused The Liquidated Company to obtain a Bounce Back Loan (BBL) of £50,000 to which it was not entitled by using an overstated turnover figure in the BBL application, in that:

• The terms of the BBL scheme stated that the company must have been established and carrying on business on 1 March 2020 and that a business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019 or where a business was established after 1 January 2019 it is their estimated turnover.
• The Liquidated Company was incorporated on 11 July 2018, but it filed dormant accounts for the period from 11 July 2018 to 31 July 2021. The first transaction on the company’s bank account was the receipt of the £50,000 Bounce Back Loan on the 7 August 2020.
• On 7 August 2020 The Liquidated Company obtained a Bounce Back Loan of £50,000 despite it having no turnover in the calendar year 2019 and it being dormant on 1 March 2020.

On 1 December 2021 The Liquidated Company entered creditors’ voluntary liquidation with liabilities of £50,000 which is owed in respect of the Bounce Back Loan.

Case 62 – Director disqualification for breaches of the BBL scheme

Director Disqualified for 9 years by a signed undertaking of the director.

On 2 October 2020, The Disqualified Director (The Disqualified Director), on behalf of The Liquidated Company (LC) applied for a Government backed Bounce Back Loan (BBL) in the sum of £50,000. The BBL was paid into LC bank account on 8 October 2020. The BBL application records that LC turnover for calendar year ended 2019 had been significantly overstated which enabled the maximum loan value in the sum of £50,000 to be obtained. More specifically:

•  On 2 October 2020, LC applied to NatWest Bank for a Government backed BBL which was subsequently advanced in the sum of £50,000 on 8 October 2020. The balance of LC bank account was £276.65 prior to receipt of the BBL.

Turnover

•  The BBL Scheme allowed businesses established prior to 1 December 2019 to borrow between £2,000 and £50,000 up to a maximum of 25% of a business’ turnover for the calendar year ended 31 December 2019.

•  LC was incorporated on 9 June 2014 having traded from this time.
• The BBL application confirms that the level of annual turnover declared for calendar year 2019 was £270,000.
• The sum of £50,000 was subsequently advanced to LC on 8 October 2020 on this basis.
• He confirmed in the BBL application that the loan value was equal to or less than 25% of annual turnover for 2019.
• Analysis of the LC bank statements records payments totalling £2,961.02 were received into LC bank account during calendar year 2019. Of these receipts, none appear to relate to genuine company income.
• LC also operated a reserve bank account which received interest payments in the sum of £1.19 during calendar year 2019 and no other income. The balance on this account was £648.63 as at the date of the BBL application.

 LC accounting records therefore confirm that the level of turnover declared in the BBL application was significantly overstated.

Case 63 – Director disqualification for misrepresentation on a BBL application

Director Disqualified for 12 years by Order of the Court.

The Disqualified Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) totalling £50,000 which was in breach of BBL terms, by using overstated turnover figures in the BBL application. From the loan proceeds received, The Disqualified Director used £39,556 for his own personal benefit, and which was not for the economic benefit of the Charity in that:

• On 15 October 2020 the Charity obtained a BBL of £45,000. On 04 March 2021 the Charity obtained a further top-up loan from the BBL of £5,000. A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019.
• The Liquidated Company BBL application shows that The Disqualified Director stated that the charity’s turnover for the calendar year 2019 was £200,000.
• Year-end accounts for the Charity show that turnover until 31 March 2019 totalled £359 and to the year end 31 March 2020 totalled £25,670. The Liquidated Companyre were no day-to-day overheads for the Charity and all expenses were derived from fundraising events and charitable activities/costs.
• Between 06 November 2020 and 14 December 2020 The Disqualified Director paid £26,682 towards personal legal fees.
• Between 19 October 2020 and 16 April 2021 The Disqualified Director utilised funds totalling £13,874 which were not for the economic benefit of the charity.

The Liquidated Company Charity ceased trading on 06 September 2021 and entered into liquidation on 21 September 2021 with no assets and liabilities of £50,000 which is owed in respect of the BBL.

Case 64 – Director disqualification for misrepresentation of turnover on a BBL application

Director Disqualified for 4 years by a director signed undertaking.

The Disqualified Director (The Disqualified Director) allowed The Liquidated Company (The Liquidated Company) to overstate its turnover on its application for a Bounce Back Loan (BBL) resulting in The Liquidated Company receiving £17,040 more than it was entitled to. In that:

• The Liquidated Company’s financial statements for the year ending 21 June 2019 shows a turnover of £13,155.
• The Liquidated Company’s financial statements for the year ending 21 June 2020 shows a turnover of £7,870.
• The Liquidated Company’s bank statements show that income of £11,842 was received throughout 2019.
• The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan).
• Based on income received and banked during 2019, The Liquidated Company would have been entitled to receive £2,960.
• A BBL of £20,000 was applied for on behalf of the company, stating in the loan application that The Liquidated Company’s turnover for 2019 was £100,000.
• On 21 August 2020, funds of £20,000 were credited to The Liquidated Company’s bank account.

At the date of liquidation on 01 October 2021 a total of £20,822 was due to creditors including the full amount of the BBL.

Case 65 – Director disqualification for breach of the BBL scheme conditions

Director Disqualified for 7 years by Court Order.

The Disqualified Director caused The Liquidated Company to apply for a Government assisted Coronavirus Bounce Back Loan (BBL) of £50,000 when he knew or ought to have known that The Disqualified Director failed to be eligible for the loan, and subsequently failed to ensure the funds were used in their entirety for the economic benefit of the company.

• On or around 29 May 2020 The Disqualified Director made an application to Bank A for a BBL of £50,000. As a result of making that application, the requested sum was paid to the company.
• On 12 June 2020, The Disqualified Director made an application to Bank B for a BBL of £50,000.
• In signing the agreement to Bank B, The Disqualified Director confirmed that, as per Section 6.1 of the application, it (being the company) has not previously borrowed under the BBL Scheme
• As a result of making that application, on 16 June 2020, Bank B paid the sum of £50,000 into account 18912880.
• On the same day, the funds were transferred to account 16112305 in the name LC. The balance on the account prior to the payment being made was £12.97.
• On 20 July 2020, £32,000 was transferred to an account in the name The Disqualified Director Current.
• Between 21 July 2020 and 22 October 2020 a further £18,000 was transferred to The Disqualified Director’s current account in 6 transactions.

and The Disqualified Director both state that this money was paid wholly in salary and dividends.

Case 66 – Director disqualification for misuse of a Bounce Back Loan

Director Disqualified for 5 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to make a payment of £20,000 to himself shortly after receiving a Government-backed Bounce Back Loan (BBL) of £20,000 on 28 August 2020. This payment breached the terms of the BBL scheme which states that its intended purpose was to provide economic benefit to the business and not for personal purposes, in that:

• On 21 August 2020, The Liquidated Company held a balance of £969.03 in its bank account.
• On 28 August 2020, The Liquidated Company  received a BBL of £20,000.
• On 1 September 2020, a payment of £20,000 was made to The Disqualified Director’s personal bank account under the reference loan.
• On 9 July 2021 The Disqualified Director instructed a liquidator to assist with the winding-up of The Liquidated Company. The Liquidated Company entered Liquidation on 7 October 2021 with outstanding liabilities of at least £29,668.49 including an outstanding BBL balance of £18,998.64.

Case 67 – Director disqualification for breach of the conditions of the Bounce Back Loan Scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) caused the Liquidated Company (LC) to breach the conditions of the Bounce Back Loan Scheme by overstating the turnover of LC to receive a bounce back loan of £45,000 that LC was not fully entitled to, and applying funds obtained under the scheme to himself and not for the economic benefit of LC, in that:

•  LC applied for the bounce back loan and on 10 August 2020 and received £45,000 on 11 August 2020.

•  On the bounce back loan application annual turnover is stated as £200,000, while bank statements show the actual turnover in the year to 10 August 2020 was £4,428.

 Between 11 August 2020 and 23 November 2020 net payments of £36,620 were made to him.

Case 68 – Director disqualification for breaching the BBL scheme terms

Director Disqualified for 10 years by a director signed undertaking.

Between 04 May 2020 and 29 September 2020, The Company Director caused The Dissolved Company to breach the Bounce Back Loan (BBL) Scheme by making an inaccurate application for a loan when The Dissolved Company was classed as a business in difficulty, in that:

• On 22 October 2019, a Winding-up Petition was presented against IC;
• On 06 November 2019, The Company Director began discussions regarding a Company Voluntary Arrangement (CVA) with an Insolvency Practitioner because IC was insolvent and could not pay its debts as and when due;
• As a result of the above, by 31 December 2019, IC was classed as a Business In Difficulty but this was not declared on the BBL application form;
• On 11 February 2020, IC entered into a CVA with liabilities totalling £109,040.71 but this was not declared on the BBL application forms;
• On 04 May 2020, IC applied for a BBL of £50,000 which it was not entitled to for the reasons set out above. ACE received the £50,000 on 06 May 2020;
• On 16 June 2020 The Company Director caused The Dissolved Company to make a fraudulent application for a second BBL in breach of the terms of the scheme which at the time allowed for only one application when he knew or ought to have known that IC was not eligible in that:
• Businesses eligible for a BBL were able to borrow up to 25% of their turnover, with a maximum loan of £50,000;
• On 16 June 2020, IC applied for a second BBL of £50,000 which it was not entitled to for the reasons set out above and because IC had already received the maximum amount allowed under the BBL Scheme. IC received the £50,000 in respect of this second application on 18 June 2020;

On 02 December 2020, IC entered into Creditors’ Voluntary Liquidation with liabilities of £341,432.57, including the £100,000 owed to the Government in respect of the two BBLs.

Case 69 – Director disqualification for false declaration of turnover on BBL application

Director Disqualified for 11 years by Order of the Court.

On 07 May 2020, The Disqualified Director caused The Liquidated Company to overstate its turnover on its application for a Bounce Back Loan (BBL) resulting in The Liquidated Company receiving funds of £33,000 to which it was not entitled. In that:

•  The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover, with a maximum loan of £50,000 for the purpose of a business carried on or intended to be carried on by the applicant;
• The BBL scheme states that if the business was established after 01 January 2019, turnover will need to be estimated. The turnover figure, even if self-certified by the applicant with no checks or evidence required, cannot be over-estimated by more than 25% in order to obtain a larger loan;
• On 07 May 2020, he applied for a BBL of £33,000 for The Liquidated Company stating the estimated turnover as £133,000 on the application form which was based on the turnover of an associated company registered in another country;
• Company records and bank statements for The Liquidated Company show sales income of £1,169 for the period from 07 May 2019 (incorporation) to 06 May 2020 (the date before the BBL was applied for);
• On 11 May 2020, BBL funds of £33,000 were paid into The Liquidated Company bank account;

 At liquidation, £33,000 remained outstanding in respect of the BBL.

Case 70 – Director disqualification for missuse of a BBL

Director Disqualified for 10 years by a signed undertaking of the director.

Between the 21 July 2020 (date the Bounce Back Loan was credited) and 8 August 2020 The Disqualified Director obtained a Government Backed Covid-19 Bounce Back Loan (hereinafter referred to as BBL) of £50,000 and failed to use it in its entirety for the economic benefit of The Liquidated Company (hereinafter referred to as LC). In addition, LC did not meet the criteria to apply for the loan. In that:

• A review of the bank statement shows that LC received business income for the last time on 17 January 2020. To meet the criteria for the loan businesses needed to be established and actively trading at 1 March 2020;

• On 21 July 2020, a BBL totalling £50,000 was paid into LC’ bank account. Following the receipt of the loan, the account balance stood at £50,009.50 in credit;
• Between 27 July 2020 and 8 August 2020 three transactions were made from the company bank account to a bank account belonging to The Disqualified Director totalling £49,750;
• Between 9 August 2020 and liquidation, other than charges applied to the account, no other money is paid from or into the bank account;

On 18 July 2021, LC entered liquidation with liabilities totalling £81,450.

Case 71 – Director disqualification for breaching the terms of the Bounce Back Loan Scheme

Director Disqualified for 8 years by a director signed undertaking.

On or around 22 May 2020, The Disqualified Director of the Liquidated Company caused the Liquidated Company to falsely apply for a Bounce Back Loan (BBL) of £50,000 and to breach the terms of the Bounce Bank Loan (BBL) scheme, when he knew or ought to have known Liquidated Company was only entitled to apply for funds of £4,338.

• The Liquidated Company transferred £48,800 of the funds to various parties, not for the economic benefit of the Liquidated Company and without the intention to complete timely repayments in the future resulting in loss to the bank of at least £48,800.
• Under the Bounce Bank Loan scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover. The turnover figure required was that for the calendar year 2019.
• Businesses were required to use the loan only to provide economic benefit to the business, and not for personal purposes and confirm they have understood the costs associated with repayment of the loan and that they are able and intend to complete timely repayments in future
• Between 1 January 2019 and 31 December 2019, the Liquidated Company’s bank account shows turnover of £17,350
• On 22 May 2020 the Liquidated Company received a BBL of £50,000, The Liquidated Company having declared on the application form a turnover of £290,000.
• On 23 May 2020 payments totalling £48,800 were made from The Liquidated Company’s bank account:
• Payment totalling £14,100 under reference ‘D’
• Payments totalling £34,650 to third parties
• Payment of £50 to The Liquidated Company
• On 5 August 2020 The Liquidated Company made an application to dissolve The Liquidated Company
• As of 5 August 2020 the full amount of the BBL remained outstanding.

On 3 November 2020 The Liquidated Company was dissolved and the BBL of £50,000 remains outstanding

Case 72 – Director disqualification for wrongful application for a Bounce Back Loan

Director Disqualified for 8 years by an undertaking agreed by the director.

On 25 June 2020, The Disqualified Director caused The Liquidated Company Limited to wrongly apply for a Coronavirus Bounce Back Loan (BBL) of £50,000, when he knew or ought to have known that The Liquidated Company was not eligible for that amount because it did not meet the turnover requirements for the BBL scheme, in that:

• The Liquidated Company’ professionally prepared accounts for Year-End 31 May 2019 recorded the annual turnover as £135,518;
• The Disqualified Director signed those accounts on 02 August 2019;
• The Liquidated Company’ professionally prepared accounts for Year-End 31 May 2020 recorded the annual turnover as £122,362;
• The Disqualified Director signed those accounts on 27 November 2020, but they were never filed;
• on 25 June 2020, The Disqualified Director applied to Remedial’s bank for a BBL of £50,000 on behalf of The Liquidated Company. On the BBL application form, The Disqualified Director declared that Remedial’s turnover was £200,000;
• on 03 July 2020, The Liquidated Company received BBL funds of £50,000;

on 29 April 2021, The Liquidated Company went into Liquidation. The balance on the bank account at the date of Liquidation was £352.13.

Case 73 – Director disqualification for multiple breaches of the Bounce Back Loan scheme

Director Disqualified for 10 years by a signed undertaking of the director.

On 21 May 2020 The Disqualified Director caused The Liquidated Company to apply for a Bounce back loan (BBL) of £50,000 by overstating The Liquidated Company turnover, as a consequence of which The Liquidated Company received £35,335 more than it was entitled. In addition, at least £31,500 of the BBL funds were not used for the economic benefit of The Liquidated Company in breach of the BBL terms and conditions. In that:

• Under the Bounce Back Loan scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of 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 turnover.
• The Liquidated Company was incorporated on 10 April 2016.
• The Liquidated Company turnover for the calendar year 2019 was £58,661. Based on this, The Liquidated Company was entitled to a maximum BBL of £14,665.
• On 21 May 2020, The Disqualified Director applied for a BBL of £50,000 on behalf of The Liquidated Company, overstating The Liquidated Company turnover for the 2019 calendar year as £250,000.
• On 22 May 2020 The Liquidated Company received BBL funds of £50,000 which was £35,335 more than it was entitled to.
• Between 27 May 2020 to 11 June 2020, £31,500 was transferred to The Disqualified Director and a third party. No evidence has been provided that these transfers were used for the economic benefit of The Liquidated Company.

At liquidation The Liquidated Company had declared liabilities of £50,844, £50,000 of which is in respect of the BBL.

Case 74 – Director disqualification for breaking the terms of the BBL Scheme

Director Disqualified for 9 years by an undertaking agreed by the director.

The Banned Director caused The Insolvent Company to apply for and obtain a Bounce Back Loan (BBL) of £42,000 using overstated turnover figures in the application form. He also transferred £41,000 to a connected company contrary to the terms of the BBL scheme. In that:

•  The BBL scheme allowed businesses affected by the Coronavirus pandemic to apply for a BBL of between £2,000 and £50,000, up to a maximum of 25% of turnover in the calendar year 2019 or if incorporated after 1 January 2019 its estimated turnover from the date the business was started.
• He applied for a BBL on behalf of the company for £42,000 on 4 May 2020.
• He stated that the company was dormant until 10 April 2020 and used a projected forecast of £168,000 as the company turnover.
• The company was incorporated in April 2019 and bank analysis shows 5 credits to the bank account totalling £588 between 10 December 2019 and 30 April 2020. The accounts for year end 30 April 2020 show turnover of £588.
• The company had therefore started trading from at least 10 December 2019 with turnover of £588 until 4 May 2020, the date of the application. This represents approximately 5 months of actual turnover and he could therefore only apply approximately 7 months of his estimated turnover. This results in a turnover figure of £101,112 and a BBL of £25,278.
• The company consequently received £16,722 more than it was entitled to.
• BBL funds of £42,000 were credited to the company’s bank account on 5 May 2020.
• On 1 June 2020 £41,000 was transferred to a connected company.
• He provided invoices made out to ‘i’ totalling £40,200.

 He stated that ‘i’ was the trading name of the connected company from May 2016 until it was transferred to The Insolvent Company on 10 April 2020 but has not provided any documentary evidence to support this claim and that the BBL funds were used for the economic benefit of the company.

Case 75 – Director disqualification for multiple breaches of the bounce back loan scheme

Director Disqualified for 9 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to overstate the turnover on an application for a Bounce Back Loan (BBL) resulting in the company receiving more funds than it was entitled to, and failed to use the funds received for the economic benefit of The Liquidated Company as required, in that:

• On 6 May 2020, The Disqualified Director applied for a BBL of £50,000.00 on behalf of the Insolvent Company, stating in the loan application that the Insolvent Company turnover was £220,000.00. No evidence has been provided to show how this turnover could have been reasonably expected;

• On 11 May 2020, funds of £50,000.00 were credited to a current bank account used as a trading account for the Insolvent Company;

• Between 14 May 2020 and 1 July 2020, a total of £49,500.00 of BBL funds were paid across to a business bank account for another company that The Disqualified Director is sole director of;

• Funds were then transferred into a personal bank account of The Disqualified Director;

At the date of the Liquidation on 8 July 2021, a total of £50,600.00 was owed to creditors, of which at least £50,000.00 to banks and £600.00 to trade creditors.

Case 76 – Director disqualification for a false application fora BBL

Director Disqualified for 9 years by Order of the Court.

On 14 May 2020 The Disqualified Director caused The Liquidated Company to make a false Bounce back loan (BBL) application of £20,000 on behalf of LC by overstating LC estimated turnover. He caused LC to make a payment of £19,900 of the BBL funds which was not for the economic benefit of LC thus breaching the conditions of the bounce back loan scheme.

•  Under the Bounce Back Loan scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of 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 turnover. The bounce back loan funds should only be used for the economic benefit of the business.
• LC was incorporated on 03 December 2019.
• LC had one customer who between 24 January 2020 and 07 May 2020 paid LC an average of £640 per week, totalling £14,078 during the period and giving an extrapolated turnover of £33,275 for the year. Financial accounts for year ending 31 December 2020 show actual turnover of £41,842 which would result in a BBL entitlement of £10,460.
• On 14 May 2020 he applied for a BBL on behalf of LC declaring its estimated turnover to be £80,000. He should have known that the turnover figure of £80,000 was overstated as at the time of the BBL application LC had one customer who paid a regular amount to LC each week. The overstatement meant that LC received BBL funds of £9,540 to which it was not entitled.
•  On 16 May 2020 the balance on LC bank account was £6 in credit. On 17 May 2020 the BBL of £20,000 was paid into LC bank account, increasing the account balance to £20,006. Between 17 May 2020 and 03 July 2020 LC customer paid £6,868 into the account and £6,874 was paid to him leaving a bank balance of £20,000. On 06 July 2020 a payment of £19,900 was made from the account. There is no evidence that this payment was for the economic benefit of LC.

 At liquidation LC had declared liabilities of £27,140 which include £20,000 in respect of the BBL.

Case 77 – Director disqualification for multiple breaches of the Bounce Back Loan Scheme

Director Disqualified for 9 years by a director signed undertaking.

On 27 May 2020 The Disqualified Director (The Disqualified Director) caused the Liquidated Company (LC) to breach the conditions of the Bounce Back Loan (BBL) facility by obtaining a BBL of £50,000 when she knew or ought to have known that LC was not entitled to the loan having previously applied for and received a BBL of £50,000 on 18 May 2020 from another lender, in that:

• Under the BBL scheme businesses were able to apply for up to 25% of their turnover to a maximum of £50,000. Businesses which originally borrowed less than the maximum amount available to them under the scheme were eligible to top-up their original loan, however the total loan amount was not to exceed 25%. Only one loan was available to businesses.
• The Disqualified Director made an application for a BBL and on 18 May 2020 LC received £50,000 from a financial institution.
• The Disqualified Director made a further BBL application on behalf of LC to another financial institution and in doing so made a declaration that this was the only BBL application that LC had made. On 27 May 2020 LC received a further BBL of £50,000.
• Between 01 June 2020 and 21 June 2020 £25,485 was transferred to The Disqualified Director’s personal account.

Total liabilities at liquidation amount to £133,590 which include debts of £100,000 in respect of the two BBLs.

Case 78 – Director disqualification for false application to the bounce back loan scheme

Director Disqualified for 10 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to falsely apply for a Bounce Back Loan (BBL) of £50,000 when he knew or ought to have known that the company did not meet the turnover figure required to obtain a loan of that value. He allowed the BBL funds to be paid to him personally and not for the economic benefit of LC in breach of the BBL terms and conditions.

•  Under the terms of the BBL scheme, companies were eligible for a BBL up to 25% of their turnover for the 2019 calendar year. On 18 July 2020, his co-director applied for a BBL of £50,000 on behalf LC and entered a turnover figure of £220,000 on the application form.

•  Analysis of LC’s company bank account discloses turnover as £80,728 for the 2019 calendar year meaning that LC would have been eligible for a maximum loan of £20,182.

•  On 18 July 2020, LC applied for a BBL of £50,000.

•  The £50,000 BBL was credited into LC’s bank account on 20 July 2020.

•  Between 20 July 2020 and 22 July 2020, a total of £50,000 was paid out of LC’s bank account to him, contrary to the terms of the BBL agreement which state that BBL funds should be used for the economic benefit of the business.

 The BBL of £50,000 remains outstanding at liquidation.

Case 79 – Director disqualification for overstating income on a bounce back loan application

Director Disqualified for 8 years by a director signed undertaking.

The Disqualified Director caused the Insolvent Company to breach the terms and conditions of the Bounce Back Loan (BBL) scheme by overstating the Insolvent Company’s annual turnover which resulted in the Insolvent Company obtaining the maximum loan value of £50,000 when he knew or ought to have known that it was not entitled to that amount. In that:

•  BBL’s were available for an amount of up to 25% of turnover for the calendar year 2019, to a maximum of £50,000. If a company was incorporated after 1 January 2019, an estimated turnover figure could be used.
• As the Insolvent Company was incorporated on 21 October 2011, the turnover figure for the calendar year 2019 should have been quoted on the BBL application form.
• On 11 June 2020, The Disqualified Director and his co-director applied for a BBL of £50,000 on behalf of the Insolvent Company, quoting a turnover of £220,000 on the BBL application form.
• Accounts for year ended 31 October 2019 show turnover of £40,054 and bank statements for the period 1 November 2019-31 December 2019 show receipts of £61,811. Therefore, the Insolvent Company was not entitled to a BBL of £50,000 which was received on 12 June 2020.

At the date of liquidation on 14 October 2021, £47,948.50 was owed to The Disqualified Director, £46,953 was owed to his co-director and £50,000 was owed to the bank in respect of the BBL. There were no other creditors.

Case 80 – Director disqualification for false accounting to obtain a Bounce Back Loan

Director Disqualified for 8 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to obtain a Government-backed Bounce Back Loan (BBL) of £50,000 by submitting false or knowingly inaccurate information to the bank.

• The BBL was used to fund improvements to premises for the economic benefit of the leaseholder and the restaurant now trading from those premises rather than for the economic benefit of the Company, contrary to the explicit terms and purpose of the Covid support measures. In that:

Application & ineligibility

• On 12 May 2020 the Company obtained a BBL from Barclays Bank of £50,000.
• The Disqualified Director made the application for the BBL.
• A company was entitled to apply for a BBL of up to 25% of its turnover under the BBL scheme so the company’s turnover must have been stated as at least £200,000 to apply for a BBL of £50,000, ARL’s bank statements do not show receipts in excess of £200,000 in any annual year.

Use of BBL funds

• The BBL funds were used to fund renovation works and kitchen improvements at the premises from which the Company traded as a restaurant.

• The Disqualified Director held the lease to those premises personally and sublet them to the Company.

• A separate company was incorporated on 09 March 2021 and began operating from the premises as a restaurant.

The Disqualified Director approached the IP on 16 March 2021 to take steps to put ARL into CVL.

Case 81- Director disqualification for improper application for the BBL scheme

Director Disqualified for 3 years by a director signed undertaking.

The Disqualified Director allowed The Liquidated Company to apply for a Bounce Back Loan (BBL) of £30,000 on 16 May 2020 when it was not entitled to funds from the BBL scheme, in that:

•  A Business could apply for a BBL if it had been adversely affected by Covid-19 and was trading on 1 March 2020.
• The Liquidated Company was incorporated on 17 January 2020.
• The Liquidated Company’s BBL application form, which was signed by him on 16 May 2020, declared an estimated annual turnover of £120,000.
• The company’s bank statements show that between 17 January 2020 and 17 May 2020 the only credits into the account were from the directors totalling £292. These monies were used to pay a monthly direct debit for accounting services.
• Furthermore, the directors’ history within the company’s report to creditors states that the company commenced trading in July 2020.
• The company was not trading as of 1 March 2020 and therefore not adversely affected by Covid-19 and consequently not entitled to any loan from the BBL scheme.

 On 25 August 2021 MG The Liquidated Company entered liquidation with total liabilities of £31,263 of which £30,000 was the BBL.

Case 82 – Director disqualification for overstating turnover on a BBL application and miuse of funds from the scheme

Director Disqualified for 8 years by an undertaking agreed by the director.

On 11 May 2020 The Disqualified Director applied for a Government-backed Bounce Back Loan (‘BBL’) of £30,000 for The Liquidated Company by incorrectly overstating its turnover in the application and thereafter disbursed these moneys in manner that was subsequently indicated to me by the Insolvency Service was not for the economic benefit of the Company, contrary to the terms of the BBL scheme. In that:

Misapplication

• The Disqualified Director electronically signed a BBL application on 11 May 2020 stating that the Company’s turnover was £140,000 and requesting a loan of £30,000.

• The Company filed dormant accounts up to 30 November 2019 and the accounts for the subsequent year ended 30 November 2020 show losses of £22,629.

• On 12 May 2020 when the BBL was received the Company had a balance of £33.10 in its bank account.
• From the Company’s bank account being opened on 4 April 2019 up to 12 May 2020 the Company received income of £10,298, £10,000 of which related a Covid-support local authority grant which was received on 09 April 2020 and was subsequently transferred on 10 April 2020 to an associated party.
• The eligibility criteria as stated in the form completed by The Disqualified Director on 11 May 2021, made it clear that estimated turnover can only be used if the business was established after 01 January 2019.
• The Disqualified Director has asserted that the business was in existence prior to that date without supplying any evidence. The Company bank account was opened on 4 April 2019
• The Company was not entitled to a BBL using either the estimated turnover or actual turnover figures.

Misuse of Covid Support

• The BBL was received on 12 May 2020.
• On 13 May 2020, the day after the BBL was received, £18,000 was paid to an individual who had been a director of the Company up until 12 February 2019. A further £2,400 was again paid to the same individual on 19 January 2021.
• The Disqualified Director asserts these payments were in repayment of existing loans, that is pre-existing debt to a connected or associated person, with no evidence provided to support this.
• On 16 May 2020 £6,700 was paid for building works that The Disqualified Director asserts was at the former director’s home property.

The three payments identified, in addition to the dissipation of remaining funds, were contrary to the terms of the BBL lending, as there is no evidence of any economic benefit to the Company, nor is there any evidence of any material trading.

Case 83- Director disqualification for multiple breaches of the terms of the Bounce Back Loan Scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to obtain a Government-backed Bounce Back Loan (BBL) totalling £50,000 for which he knew or ought to have known it was not eligible for and did not use the BBL for the economic benefit of the Company, contrary to the terms of the BBL. In that:

• On 8 July 2020, The Disqualified Director declared within the BBL application that the Company’s business was engaged in trading or commercial activity in the United Kingdom as at the date of the application;
• The Company was incorporated on 10 February 2020 and there is no evidence of it ever trading;
• The Disqualified Director declared in the BBL application that the Company’s estimated turnover was £210,000;
• The Company never generated any revenue through trading and the only monies ever received into the Company’s bank account were the BBL funds;
• On 9 July 2020 £50,000 was received in the Company’s bank account, being the proceeds of the BBL;
• Between 27 August 2020 and 16 February 2021, the total sum of £29,820.00 was withdrawn in cash, and the remaining £20,605.00 was paid directly to The Disqualified Director via bank transfer;
• No evidence has been provided to demonstrate that any of the BBL was used for the economic benefit of the Company;

At liquidation, the Company’s only creditor was its bank who are owed £50,000 in respect of the BBL.

Case 84 – Director disqualification for breaching the terms of the Bounce Back Loan Scheme

Director Disqualified for 8 years by a signed undertaking of the director.

On 29 May 2020 The Company Director (The Company Director) caused The Dissolved Company (DC) to make a fraudulent application for a Bounce Back Loan of £50,000 by overstating annual turnover with the consequence that DC obtained a BBL that was greater than it was entitled to. In that:

•  Bounce Back Loans between £2,000 and 25% annual turnover (up to a maximum of £50,000) were made available from 5 May 2020 for business’s adversely impacted by the Coronavirus Pandemic. The terms stipulated the funds were to be used for the economic benefit of the business.
•  Accounts approved by the board on 17 July 2019 and 30 July 2020 for years ending 30 April 2019 and 30 April 2020 respectively show turnover of £59,956 and £47,637, however the turnover she stated on the BBL application was £200,000.

 The BBL funds of £50,000 were received on 2 June 2020 and transferred to her bank account on 4 June 2020 and no records have been supplied to the Liquidator to verify it has been used for the economic benefit of the company.

Case 85 – Director disqualification for breaching the terms of the BBL Scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to breach the terms of the Coronavirus Business Interruption Scheme (CBILS), in that, the company obtained a loan of £110,000 on 05 October 2020 and failed to use the loan amount (or part of it) to repay in full the outstanding balance of an existing business Bounce Bank Loan (BBL) obtained in May 2020.

• Following receipt of the CBILS funds and during the period 05 October 2020 to 11 May 2021, the date of The Disqualified Director’s resignation as director, The Liquidated Company’s payments to associated companies resulted in a net outflow of £63,784 and The Liquidated Company’s payments to The Disqualified Director resulted in a net outflow of £44,322, such payments constituted a misuse of the CBILS funds as defined in the CBILS terms.
• The Disqualified Director was registered as director of The Liquidated Company from 12 January 2017 to 11 May 2021 and the sole registered director from 15 February 2019.
• In May 2020 The Liquidated Company obtained a BBL of £50,000.
• On 01 October 2020 The Liquidated Company submitted a CBILS application and subsequently received a CBILS loan of £110,000 on 05 October 2020.
• Paragraph 6 (b) of the CBILS Self Certification, signed by The Disqualified Director on 01 October 2020, stated that The Disqualified Director as the borrower herby agrees and undertakes to the lender that it will use the Loan Amount (or part of it) to refinance (and hence) repay in full the Bounce Back Loan’ Scheme (BBLS) Amount.
• The Liquidated Company entered liquidation on 26 August 2021 and the BBL obtained by The Liquidated Company in May 2020 remained unpaid.
• Paragraph 20 of the CBILS Self Certification, signed by The Disqualified Director on 01 October 2020, stated that the purpose of the CBILS loan is Working Capital
• During the period 05 October 2020 to 11 May 2021, the date of The Disqualified Director’s resignation as director, The Liquidated Company’s payments to associated companies totalled £73,885 and resulted in a net outflow of £63,784.
• During the period 05 October 2020 to 11 May 2021, the date of The Disqualified Director’s resignation as director, The Liquidated Company’s payments to The Disqualified Director totalled £110,585 and resulted in a net outflow of £44,322.

The CBILS’ agreement confirmed that the funds should be used for working capital as per clauses 2.7 and 5 of the agreement and therefore the use of the funds detailed above were in contravention of the agreement.

Case 86- Director disqualification for breach of the BBL conditions

Director Disqualified for X years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to breach the conditions of the Bounce Back Loan Scheme by overstating The Liquidated Company turnover in order to obtain a larger loan of £50,000, when he knew or ought to have known that The Liquidated Company was only eligible for a loan to a maximum of £14,036 based on accounts filed for the calendar year 2019:-

• Under the Bounce Back Loan (BBL) scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of 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 turnover. To be eligible, businesses were required to be engaged in trading or commercial activity in the UK at the date of the application, carrying on business on 1 March 2020 and be adversely impacted by coronavirus;
• Filed accounts to the end of March 2019 show a turnover of £76,650 and filed accounts to the end of March 2020 show a turnover of £49,308 which gives an estimated turnover for the calendar year 2019 of £56,144.
• The BBL criteria allowed a business to borrow up to 25% of the Company’s turnover. Based on filed accounts covering the calendar year 2019, The Liquidated Company was eligible to borrow a maximum of £14,036;
• The Disqualified Director applied for a BBL of £50,000 on behalf of FSL on 23 May 2020 declaring in the BBL application that The Liquidated Company turnover for 2019 was £227,000;
• On 26 May 2020 a BBL of £50,000 was credited to The Liquidated Company bank account;

Total liabilities at liquidation amount to £72,696 which includes debts of £50,822 in respect of the BBL, £14,900 to trade creditors, £4,054 to employees and £2,920 to The Disqualified Director.

Case 87 – Director disqualification for false application to the Bounce Back Loan scheme

Director Disqualified for 5 years by a signed undertaking of the director.

The Disqualified Director caused The Liquidated Company to falsely apply for a Bounce Back Loan (BBL) of £50,000 when she knew or ought to have known that the company did not meet the turnover figure required to obtain a loan of that value. She caused the £50,000 BBL funds to be paid to her co-director and not for the economic benefit of LC in breach of the BBL terms and conditions.

•  Under the terms of the BBL scheme, companies were eligible for a BBL up to 25% of their turnover for the 2019 calendar year. On 18 July 2020, she applied for a BBL of £50,000 on behalf of and entered a turnover figure of £220,000 on the application form.
•  Analysis of LC’s company bank account discloses turnover as £80,728 for the 2019 calendar year, meaning LC would have been eligible for a maximum loan of £20,182.
•  The £50,000 BBL was credited into LC’s bank account on 20 July 2020.
•  Between 20 July 2020 and 22 July 2020, a total of £50,000 was paid out of LC’s bank account to her co-director, contrary to the terms of the BBL agreement which state that BBL funds must be used for the economic benefit of the business.

 The BBL of £50,000 remains outstanding at liquidation.

Case 88 – Director disqualification for inaccurate accounting for a BBL application

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to obtain a Government-backed Bounce Back Loan (BBL) totalling £30,000, received on 21 May 2020, to which the company was not fully entitled, by submitting inaccurate information. In that:

• The Liquidated Company ovision of inaccurate data
•  On 19 May 20202 she submitted, on behalf of the Company a BBL application form. The BBL application form stated a company was only entitled to a BBL of up to 25% of its turnover in the calendar year 2019;
•  The Company filed blank accounts for the years ending 28 February 2019 and 2020
•  Bank Statements show that the Company’s income between 1 March 2019 and 29 February 2020 was £29,039.18. Based on this, the company was entitled to a BBL of £7,260.
•  She declared in the BBL application that the Company’s turnover in the calendar year 2019 as £250,000 which she has confirmed was a projected figure which she provided in error.

 As at March 2020 the Company had contracted to supply goods or service, being tickets for a sporting event, to one customer only which was subsequently repaid to a Debt Collection totalling £15,988.50.

Case 89 – Director disqualification for false application for the BBL Scheme

Director Disqualified for 5 years by a director signed undertaking.

On 17 August 2020 The Banned Director caused The Liquidated Company to falsely make an application for a Government-backed Bounce Back Loan (BBL) of £45,000 when she knew or ought to have known that the eligibility criteria had not been met.

• Further, in any event she breached the terms of the BBL scheme as regards the utilisation of a Government backed Bounce Back Loan that it obtained on 19 August 2020.
•  To be eligible, The Liquidated Company was required to have been carrying on business on 01 March 2020 and engaged in trading at the time of the application. However, The Liquidated Company was not trading, and the director filed dormant accounts for the year ended 30 September 2020.
•  On 17 August 2020 she applied for a BBL of £45,000 stating a turnover of £200,000.
•  Accounts filed at Companies House for the year ended 30 September 2019 reveals that turnover for that period was £18,733.
•  £45,000 was credited to the company bank account on 19 August 2020.
•  £2,000 was paid into the director’s personal account on 20 October 2020. She states that this was taken out as a director’s loan.
•  £40,000 was paid into the director’s personal bank account on 26 January 2021 for investment purposes.
•  The payment made to her breached the conditions of the BBL which stated that its intended purpose was to provide economic relief to the business and to be used wholly for business purposes and not any personal purposes
•  She stated that the utilisation of the loan was for the advancement of the company’s financial position through investment; however, no evidence of due diligence was provided.

 On 14 July 2021 The Liquidated Company entered creditor’s voluntary liquidation with zero assets and liabilities of £61,684 including £45,000 to the bank in respect of the BBL and £15,244 to HMRC.

Case 90 – Director disqualification for breaching the terms of the Bounce Back Loan Scheme

Director Disqualified for 10 years by a director signed undertaking.

On 18 May 2020, The Disqualified Director caused The Liquidated Company to wrongly apply for a Coronavirus Bounce Back Loan (BBL) of £50,000, when he knew or ought to have known that The Liquidated Company was not eligible for that amount because it did not meet the turnover requirements for the BBL scheme, in that:

• The Disqualified Director professionally prepared accounts for Year-End 30 April 2019 recorded the annual turnover as £26,561.
• Bank analysis from The Liquidated Company accounting records shows income into The Liquidated Company was £33,396 for the whole calendar year of 2019.
• The Disqualified Director professionally prepared accounts for Year-End 30 April 2020 recorded the annual turnover as £35,066.
• On 18 May 2020, The Disqualified Director applied for a BBL of £50,000 on behalf of The Liquidated Company. On the BBL application form, The Disqualified Director declared that The Liquidated Company turnover was £200,000.
• On 20 May 2020, The Liquidated Company received BBL funds of £50,000.
• The Disqualified Director traded as a courier service and was receiving income during the Covid-19 pandemic, there is no evidence that the company had been adversely impacted by Covid-19.
• On 21 April 2021, The Liquidated Company bank statements show that £25,000 was paid to the Liquidator.

 On 17 May 2021, The Liquidated Company went into Liquidation. The balance on the bank account at the date of Liquidation was £0.

Case 91 – Director disqualification for misuse of BBL funds

Director Disqualified for 8 years by an undertaking agreed by the director.

On 04 May 2020 The Disqualified Director caused The Liquidated Company Limited to obtain a government backed Bounce Back Loan (BBL) totalling £27,500 and did not use it in its entirety for the economic benefit of the business, contrary to the terms of the BBL. In that:

•  On 04 May 2020 she submitted an application to the bank for a BBL in the sum of £27,500.
•  Within the BBL application she declared that the BBL would be used to provide economic benefit to the business and would be used wholly for business purposes and not personal purposes.
•  On 05 June 2020 the sum of £27,500, being the BBL, was paid into the Company’s bank account. Prior to receipt of the loan the account had a credit balance of £1,582.17.
•  In her questionnaire dated 23 July 2021 she stated that the BBL was used to pay for the Company’s expenses including accountancy fees, tax liabilities, bank fees, other standing order expenses and as part payment for the Insolvency Practitioner’s fees. The remainder of it was taken as a director’s loan.
•  An analysis of the Company’s bank statements shows that after receipt of the BBL funds on 05 June 2020 a total of £5,196.04 was paid to HMRC, the Company accountants and other creditors. In the period from 06 June 2020 to 23 August 2020 a total of £25,500 was paid directly to her via 4 bank transfers. On 30 October 2020 she repaid £2,500. On 06 and 07 June 2020 2 payments of £732 each were made to her for wages.
•  In her director questionnaire she states that the £25,500 were director’s loan payments.
•  In her email of 27 January 2022, she states that the funds she withdrew after receipt of the BBL were shown as a director’s loan because she was unable to take dividends as the Company had no profits.
•  After receipt of the BBL funds, net payments totalling £24,464 were paid to her from the Company bank account.
•  In the liquidation proceedings she paid a settlement of £5,000 for the funds that she took personally from the BBL.

 At liquidation on 19 January 2021, the Company owed its creditors £34,498.88, including £4,912.73 owed to her and the £27,500 of the BBL which remains unpaid.

Case 92 – Director disqualification for using BBL funds in contravention of the terms of the scheme

Director Disqualified for 9 years by a signed undertaking of the director.

The Liquidated Company (The Liquidated Company) applied for a Government backed Bounce Back Loan (BBL) of £50,000 which was received into The Liquidated Company’s bank account on 9 October 2020. Between 14 and 15 October 2020 The Disqualified Director caused the BBL funds to be used contrary to the terms of the BBL scheme in that funds were transferred from the company bank account for both his and his co-director’s personal benefit, with no economic benefit to the business. In that:

• On 9 October 2020 The Liquidated Company received £50,000 into its bank account in relation to the BBL.
• The terms of the BBL stated that its intended purpose was to provide economic benefit to the business and not for personal purposes.
• On 14 October 2020 £25,000 was transferred to The Disqualified Director for his personal benefit.
• On 15 October 2020 £25,000 was transferred to his The Disqualified Director’s co-director for his personal benefit.
• On 4 May 2021 The Disqualified Director made loan repayments to The Liquidated Company totalling £5,000. 

The Liquidated Company entered into creditors’ voluntary liquidation on 15 July 2021 with liabilities of £126,000 including £50,000 which is owed to in respect of the BBL and £74,000 which is owed to H M Revenue and Customs.

Case 93 – Director disqualification for making an ineligable application for a Bounce Back Loan

Director Disqualified for 5 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to obtain a Bounce Back Loan (‘BBL’) of £50,000 on 18 May 2020, when The Disqualified Director knew, or ought to have known, that it was eligible for a BBL of no more than £7,518 and failed to use all the funds for the economic benefit of the company, in that:

• The Disqualified Director was a director of The Liquidated Company from incorporation on 26 May 2015, and was the sole director from 02 February 2018 until his resignation on 28 July 2020.
• Companies adversely impacted by Covid 19 could obtain a BBL, which were limited to 25% of 2019 turnover, to a maximum of £50,000.
• Bank statements show a BBL of £50,000 was received by The Liquidated Company on 18 May 2020. To be eligible for such a loan, The Liquidated Company needed turnover of £200,000 during 2019.
• Accounts for the two years ending 31 May 2018 confirm cumulative turnover of £93,084.
• No further accounts were produced, and no records detailing turnover for the company have been provided to the liquidator for the period after accounts for 31 May 2018. Bank statements between 01 June 2018 and 31 May 2020 confirm receipts of £90,361. During this four year period, accounts and bank statements detail turnover of £183,445, less than the £200,000 turnover needed in 2019 to be eligible for a loan of £50,000.
• Bank statements for 2019 confirm receipts of £35,790, which indicate a maximum available BBL of £7,518, whereas The Disqualified Director caused The Liquidated Company to obtain the maximum available BBL of £50,000, which he knew, or ought to have known, that The Liquidated Company was not eligible for.
• Of the £50,000 received on 18 May 2020, £10,000 was transferred to The Disqualified Director on 19 May 2020, with £40,000 being paid to a third party on the same day.

At Liquidation on 25 March 2021, the BBL remained unpaid.

Case 94 – Director disqualification for breaching the conditions of the BBL scheme

Director Disqualified for 7 years by a signed undertaking of the director.

The Disqualified Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) totalling £50,000 that the disqualified director knew or ought to have known that the liquidated company was not eligible for. The BBL funds obtained were not entirely used for the economic benefit of the company.

• DD was a director of LC.
• DD applied for a BBL of £50,000 on behalf of LC that was received into LC’s bank account on 13 July 2020. The loan terms allowed LC to apply for a loan up to 25% of the annual turnover of the company, up to a maximum loan amount of £50,000.
• Accounts produced for LC for the year ended 31 October 2020 showed turnover of £88,164 and accounts for the period ended 31 October 2019 showed turnover of £21,437. This was not sufficient turnover to make LC eligible for a BBL of £50,000.
• The bank account that the BBL was credited to had not been used until the BBL monies were received. The balance of the account on 13 July 2020 after the BBL was credited to the account was £50,000. After 13 July 2020 the next £50,000 of expenditure included £32,656 paid to DD including £5,000 on 13 July 2020 and £15,000 on 18 July 2020. The BBL funds obtained were not entirely used for the economic benefit of the company.

At the date of liquidation the BBL remained unpaid.

Case 95 – Director disqualification for personal use of a Bounce Back Loan

Director Disqualified for 10 years by a director signed undertaking.

The Liquidated Company applied for a Government backed Bounce Back Loan (BBL) of £50,000 which was received into The Liquidated Company’s bank account on 9 October 2020. Between 14 and 15 October 2020 The Disqualified Director (The Disqualified Director) caused the loan funds to be used contrary to the terms of the BBL scheme in that funds were transferred from the company bank account for both his and his co-director’s personal benefit, with no economic benefit to the business. In that:

•  On 9 October 2020 The Liquidated Company received £50,000 into its bank account in relation to the BBL.
•  The terms of the BBL stated that its intended purpose was to provide economic benefit to the business and not for personal purposes.
•  On 14 October 2020 £25,000 was transferred to his co-director for his personal benefit.
•  On 15 October 2020 £25,000 was transferred to him for his personal benefit.
•  On 30 April 2021 he made a loan repayment to The Liquidated Company of £5,000.

 The Liquidated Company entered into creditors’ voluntary liquidation on 15 July 2021 with liabilities of £126,000 including £50,000 which is owed to in respect of the BBL and £74,000 which is owed to H M Revenue and Customs.

Case 66 – Director disqualification for misuse of a Bounce Back Loan

Director Disqualified for 5 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to make a payment of £20,000 to himself shortly after receiving a Government-backed Bounce Back Loan (BBL) of £20,000 on 28 August 2020. This payment breached the terms of the BBL scheme which states that its intended purpose was to provide economic benefit to the business and not for personal purposes, in that:

• On 21 August 2020, The Liquidated Company held a balance of £969.03 in its bank account.
• On 28 August 2020, The Liquidated Company  received a BBL of £20,000.
• On 1 September 2020, a payment of £20,000 was made to The Disqualified Director’s personal bank account under the reference loan.
• On 9 July 2021 The Disqualified Director instructed a liquidator to assist with the winding-up of The Liquidated Company. The Liquidated Company entered Liquidation on 7 October 2021 with outstanding liabilities of at least £29,668.49 including an outstanding BBL balance of £18,998.64.

Case 67 – Director disqualification for breach of the conditions of the Bounce Back Loan Scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) caused the Liquidated Company (LC) to breach the conditions of the Bounce Back Loan Scheme by overstating the turnover of LC to receive a bounce back loan of £45,000 that LC was not fully entitled to, and applying funds obtained under the scheme to himself and not for the economic benefit of LC, in that:

•  LC applied for the bounce back loan and on 10 August 2020 and received £45,000 on 11 August 2020.

•  On the bounce back loan application annual turnover is stated as £200,000, while bank statements show the actual turnover in the year to 10 August 2020 was £4,428.

 Between 11 August 2020 and 23 November 2020 net payments of £36,620 were made to him.

Case 68 – Director disqualification for breaching the BBL scheme terms

Director Disqualified for 10 years by a director signed undertaking.

Between 04 May 2020 and 29 September 2020, The Company Director caused The Dissolved Company to breach the Bounce Back Loan (BBL) Scheme by making an inaccurate application for a loan when The Dissolved Company was classed as a business in difficulty, in that:

• On 22 October 2019, a Winding-up Petition was presented against IC;
• On 06 November 2019, The Company Director began discussions regarding a Company Voluntary Arrangement (CVA) with an Insolvency Practitioner because IC was insolvent and could not pay its debts as and when due;
• As a result of the above, by 31 December 2019, IC was classed as a Business In Difficulty but this was not declared on the BBL application form;
• On 11 February 2020, IC entered into a CVA with liabilities totalling £109,040.71 but this was not declared on the BBL application forms;
• On 04 May 2020, IC applied for a BBL of £50,000 which it was not entitled to for the reasons set out above. ACE received the £50,000 on 06 May 2020;
• On 16 June 2020 The Company Director caused The Dissolved Company to make a fraudulent application for a second BBL in breach of the terms of the scheme which at the time allowed for only one application when he knew or ought to have known that IC was not eligible in that:
• Businesses eligible for a BBL were able to borrow up to 25% of their turnover, with a maximum loan of £50,000;
• On 16 June 2020, IC applied for a second BBL of £50,000 which it was not entitled to for the reasons set out above and because IC had already received the maximum amount allowed under the BBL Scheme. IC received the £50,000 in respect of this second application on 18 June 2020;

On 02 December 2020, IC entered into Creditors’ Voluntary Liquidation with liabilities of £341,432.57, including the £100,000 owed to the Government in respect of the two BBLs.

Case 69 – Director disqualification for false declaration of turnover on BBL application

Director Disqualified for 11 years by Order of the Court.

On 07 May 2020, The Disqualified Director caused The Liquidated Company to overstate its turnover on its application for a Bounce Back Loan (BBL) resulting in The Liquidated Company receiving funds of £33,000 to which it was not entitled. In that:

•  The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover, with a maximum loan of £50,000 for the purpose of a business carried on or intended to be carried on by the applicant;
• The BBL scheme states that if the business was established after 01 January 2019, turnover will need to be estimated. The turnover figure, even if self-certified by the applicant with no checks or evidence required, cannot be over-estimated by more than 25% in order to obtain a larger loan;
• On 07 May 2020, he applied for a BBL of £33,000 for The Liquidated Company stating the estimated turnover as £133,000 on the application form which was based on the turnover of an associated company registered in another country;
• Company records and bank statements for The Liquidated Company show sales income of £1,169 for the period from 07 May 2019 (incorporation) to 06 May 2020 (the date before the BBL was applied for);
• On 11 May 2020, BBL funds of £33,000 were paid into The Liquidated Company bank account;

 At liquidation, £33,000 remained outstanding in respect of the BBL.

Case 70 – Director disqualification for missuse of a BBL

Director Disqualified for 10 years by a signed undertaking of the director.

Between the 21 July 2020 (date the Bounce Back Loan was credited) and 8 August 2020 The Disqualified Director obtained a Government Backed Covid-19 Bounce Back Loan (hereinafter referred to as BBL) of £50,000 and failed to use it in its entirety for the economic benefit of The Liquidated Company (hereinafter referred to as LC). In addition, LC did not meet the criteria to apply for the loan. In that:

• A review of the bank statement shows that LC received business income for the last time on 17 January 2020. To meet the criteria for the loan businesses needed to be established and actively trading at 1 March 2020;

• On 21 July 2020, a BBL totalling £50,000 was paid into LC’ bank account. Following the receipt of the loan, the account balance stood at £50,009.50 in credit;
• Between 27 July 2020 and 8 August 2020 three transactions were made from the company bank account to a bank account belonging to The Disqualified Director totalling £49,750;
• Between 9 August 2020 and liquidation, other than charges applied to the account, no other money is paid from or into the bank account;

On 18 July 2021, LC entered liquidation with liabilities totalling £81,450.

Case 71 – Director disqualification for breaching the terms of the Bounce Back Loan Scheme

Director Disqualified for 8 years by a director signed undertaking.

On or around 22 May 2020, The Disqualified Director of the Liquidated Company caused the Liquidated Company to falsely apply for a Bounce Back Loan (BBL) of £50,000 and to breach the terms of the Bounce Bank Loan (BBL) scheme, when he knew or ought to have known Liquidated Company was only entitled to apply for funds of £4,338.

• The Liquidated Company transferred £48,800 of the funds to various parties, not for the economic benefit of the Liquidated Company and without the intention to complete timely repayments in the future resulting in loss to the bank of at least £48,800.
• Under the Bounce Bank Loan scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover. The turnover figure required was that for the calendar year 2019.
• Businesses were required to use the loan only to provide economic benefit to the business, and not for personal purposes and confirm they have understood the costs associated with repayment of the loan and that they are able and intend to complete timely repayments in future
• Between 1 January 2019 and 31 December 2019, the Liquidated Company’s bank account shows turnover of £17,350
• On 22 May 2020 the Liquidated Company received a BBL of £50,000, The Liquidated Company having declared on the application form a turnover of £290,000.
• On 23 May 2020 payments totalling £48,800 were made from The Liquidated Company’s bank account:
• Payment totalling £14,100 under reference ‘D’
• Payments totalling £34,650 to third parties
• Payment of £50 to The Liquidated Company
• On 5 August 2020 The Liquidated Company made an application to dissolve The Liquidated Company
• As of 5 August 2020 the full amount of the BBL remained outstanding.

On 3 November 2020 The Liquidated Company was dissolved and the BBL of £50,000 remains outstanding

Case 72 – Director disqualification for wrongful application for a Bounce Back Loan

Director Disqualified for 8 years by an undertaking agreed by the director.

On 25 June 2020, The Disqualified Director caused The Liquidated Company Limited to wrongly apply for a Coronavirus Bounce Back Loan (BBL) of £50,000, when he knew or ought to have known that The Liquidated Company was not eligible for that amount because it did not meet the turnover requirements for the BBL scheme, in that:

• The Liquidated Company’ professionally prepared accounts for Year-End 31 May 2019 recorded the annual turnover as £135,518;
• The Disqualified Director signed those accounts on 02 August 2019;
• The Liquidated Company’ professionally prepared accounts for Year-End 31 May 2020 recorded the annual turnover as £122,362;
• The Disqualified Director signed those accounts on 27 November 2020, but they were never filed;
• on 25 June 2020, The Disqualified Director applied to Remedial’s bank for a BBL of £50,000 on behalf of The Liquidated Company. On the BBL application form, The Disqualified Director declared that Remedial’s turnover was £200,000;
• on 03 July 2020, The Liquidated Company received BBL funds of £50,000;

on 29 April 2021, The Liquidated Company went into Liquidation. The balance on the bank account at the date of Liquidation was £352.13.

Case 73 – Director disqualification for multiple breaches of the Bounce Back Loan scheme

Director Disqualified for 10 years by a signed undertaking of the director.

On 21 May 2020 The Disqualified Director caused The Liquidated Company to apply for a Bounce back loan (BBL) of £50,000 by overstating The Liquidated Company turnover, as a consequence of which The Liquidated Company received £35,335 more than it was entitled. In addition, at least £31,500 of the BBL funds were not used for the economic benefit of The Liquidated Company in breach of the BBL terms and conditions. In that:

• Under the Bounce Back Loan scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of 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 turnover.
• The Liquidated Company was incorporated on 10 April 2016.
• The Liquidated Company turnover for the calendar year 2019 was £58,661. Based on this, The Liquidated Company was entitled to a maximum BBL of £14,665.
• On 21 May 2020, The Disqualified Director applied for a BBL of £50,000 on behalf of The Liquidated Company, overstating The Liquidated Company turnover for the 2019 calendar year as £250,000.
• On 22 May 2020 The Liquidated Company received BBL funds of £50,000 which was £35,335 more than it was entitled to.
• Between 27 May 2020 to 11 June 2020, £31,500 was transferred to The Disqualified Director and a third party. No evidence has been provided that these transfers were used for the economic benefit of The Liquidated Company.

At liquidation The Liquidated Company had declared liabilities of £50,844, £50,000 of which is in respect of the BBL.

Case 74 – Director disqualification for breaking the terms of the BBL Scheme

Director Disqualified for 9 years by an undertaking agreed by the director.

The Banned Director caused The Insolvent Company to apply for and obtain a Bounce Back Loan (BBL) of £42,000 using overstated turnover figures in the application form. He also transferred £41,000 to a connected company contrary to the terms of the BBL scheme. In that:

•  The BBL scheme allowed businesses affected by the Coronavirus pandemic to apply for a BBL of between £2,000 and £50,000, up to a maximum of 25% of turnover in the calendar year 2019 or if incorporated after 1 January 2019 its estimated turnover from the date the business was started.
• He applied for a BBL on behalf of the company for £42,000 on 4 May 2020.
• He stated that the company was dormant until 10 April 2020 and used a projected forecast of £168,000 as the company turnover.
• The company was incorporated in April 2019 and bank analysis shows 5 credits to the bank account totalling £588 between 10 December 2019 and 30 April 2020. The accounts for year end 30 April 2020 show turnover of £588.
• The company had therefore started trading from at least 10 December 2019 with turnover of £588 until 4 May 2020, the date of the application. This represents approximately 5 months of actual turnover and he could therefore only apply approximately 7 months of his estimated turnover. This results in a turnover figure of £101,112 and a BBL of £25,278.
• The company consequently received £16,722 more than it was entitled to.
• BBL funds of £42,000 were credited to the company’s bank account on 5 May 2020.
• On 1 June 2020 £41,000 was transferred to a connected company.
• He provided invoices made out to ‘i’ totalling £40,200.

 He stated that ‘i’ was the trading name of the connected company from May 2016 until it was transferred to The Insolvent Company on 10 April 2020 but has not provided any documentary evidence to support this claim and that the BBL funds were used for the economic benefit of the company.

Case 75 – Director disqualification for multiple breaches of the bounce back loan scheme

Director Disqualified for 9 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to overstate the turnover on an application for a Bounce Back Loan (BBL) resulting in the company receiving more funds than it was entitled to, and failed to use the funds received for the economic benefit of The Liquidated Company as required, in that:

• On 6 May 2020, The Disqualified Director applied for a BBL of £50,000.00 on behalf of the Insolvent Company, stating in the loan application that the Insolvent Company turnover was £220,000.00. No evidence has been provided to show how this turnover could have been reasonably expected;

• On 11 May 2020, funds of £50,000.00 were credited to a current bank account used as a trading account for the Insolvent Company;

• Between 14 May 2020 and 1 July 2020, a total of £49,500.00 of BBL funds were paid across to a business bank account for another company that The Disqualified Director is sole director of;

• Funds were then transferred into a personal bank account of The Disqualified Director;

At the date of the Liquidation on 8 July 2021, a total of £50,600.00 was owed to creditors, of which at least £50,000.00 to banks and £600.00 to trade creditors.

Case 76 – Director disqualification for a false application fora BBL

Director Disqualified for 9 years by Order of the Court.

On 14 May 2020 The Disqualified Director caused The Liquidated Company to make a false Bounce back loan (BBL) application of £20,000 on behalf of LC by overstating LC estimated turnover. He caused LC to make a payment of £19,900 of the BBL funds which was not for the economic benefit of LC thus breaching the conditions of the bounce back loan scheme.

•  Under the Bounce Back Loan scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of 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 turnover. The bounce back loan funds should only be used for the economic benefit of the business.
• LC was incorporated on 03 December 2019.
• LC had one customer who between 24 January 2020 and 07 May 2020 paid LC an average of £640 per week, totalling £14,078 during the period and giving an extrapolated turnover of £33,275 for the year. Financial accounts for year ending 31 December 2020 show actual turnover of £41,842 which would result in a BBL entitlement of £10,460.
• On 14 May 2020 he applied for a BBL on behalf of LC declaring its estimated turnover to be £80,000. He should have known that the turnover figure of £80,000 was overstated as at the time of the BBL application LC had one customer who paid a regular amount to LC each week. The overstatement meant that LC received BBL funds of £9,540 to which it was not entitled.
•  On 16 May 2020 the balance on LC bank account was £6 in credit. On 17 May 2020 the BBL of £20,000 was paid into LC bank account, increasing the account balance to £20,006. Between 17 May 2020 and 03 July 2020 LC customer paid £6,868 into the account and £6,874 was paid to him leaving a bank balance of £20,000. On 06 July 2020 a payment of £19,900 was made from the account. There is no evidence that this payment was for the economic benefit of LC.

 At liquidation LC had declared liabilities of £27,140 which include £20,000 in respect of the BBL.

Case 77 – Director disqualification for multiple breaches of the Bounce Back Loan Scheme

Director Disqualified for 9 years by a director signed undertaking.

On 27 May 2020 The Disqualified Director (The Disqualified Director) caused the Liquidated Company (LC) to breach the conditions of the Bounce Back Loan (BBL) facility by obtaining a BBL of £50,000 when she knew or ought to have known that LC was not entitled to the loan having previously applied for and received a BBL of £50,000 on 18 May 2020 from another lender, in that:

• Under the BBL scheme businesses were able to apply for up to 25% of their turnover to a maximum of £50,000. Businesses which originally borrowed less than the maximum amount available to them under the scheme were eligible to top-up their original loan, however the total loan amount was not to exceed 25%. Only one loan was available to businesses.
• The Disqualified Director made an application for a BBL and on 18 May 2020 LC received £50,000 from a financial institution.
• The Disqualified Director made a further BBL application on behalf of LC to another financial institution and in doing so made a declaration that this was the only BBL application that LC had made. On 27 May 2020 LC received a further BBL of £50,000.
• Between 01 June 2020 and 21 June 2020 £25,485 was transferred to The Disqualified Director’s personal account.

Total liabilities at liquidation amount to £133,590 which include debts of £100,000 in respect of the two BBLs.

Case 78 – Director disqualification for false application to the bounce back loan scheme

Director Disqualified for 10 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to falsely apply for a Bounce Back Loan (BBL) of £50,000 when he knew or ought to have known that the company did not meet the turnover figure required to obtain a loan of that value. He allowed the BBL funds to be paid to him personally and not for the economic benefit of LC in breach of the BBL terms and conditions.

•  Under the terms of the BBL scheme, companies were eligible for a BBL up to 25% of their turnover for the 2019 calendar year. On 18 July 2020, his co-director applied for a BBL of £50,000 on behalf LC and entered a turnover figure of £220,000 on the application form.

•  Analysis of LC’s company bank account discloses turnover as £80,728 for the 2019 calendar year meaning that LC would have been eligible for a maximum loan of £20,182.

•  On 18 July 2020, LC applied for a BBL of £50,000.

•  The £50,000 BBL was credited into LC’s bank account on 20 July 2020.

•  Between 20 July 2020 and 22 July 2020, a total of £50,000 was paid out of LC’s bank account to him, contrary to the terms of the BBL agreement which state that BBL funds should be used for the economic benefit of the business.

 The BBL of £50,000 remains outstanding at liquidation.

Case 79 – Director disqualification for overstating income on a bounce back loan application

Director Disqualified for 8 years by a director signed undertaking.

The Disqualified Director caused the Insolvent Company to breach the terms and conditions of the Bounce Back Loan (BBL) scheme by overstating the Insolvent Company’s annual turnover which resulted in the Insolvent Company obtaining the maximum loan value of £50,000 when he knew or ought to have known that it was not entitled to that amount. In that:

•  BBL’s were available for an amount of up to 25% of turnover for the calendar year 2019, to a maximum of £50,000. If a company was incorporated after 1 January 2019, an estimated turnover figure could be used.
• As the Insolvent Company was incorporated on 21 October 2011, the turnover figure for the calendar year 2019 should have been quoted on the BBL application form.
• On 11 June 2020, The Disqualified Director and his co-director applied for a BBL of £50,000 on behalf of the Insolvent Company, quoting a turnover of £220,000 on the BBL application form.
• Accounts for year ended 31 October 2019 show turnover of £40,054 and bank statements for the period 1 November 2019-31 December 2019 show receipts of £61,811. Therefore, the Insolvent Company was not entitled to a BBL of £50,000 which was received on 12 June 2020.

At the date of liquidation on 14 October 2021, £47,948.50 was owed to The Disqualified Director, £46,953 was owed to his co-director and £50,000 was owed to the bank in respect of the BBL. There were no other creditors.

Case 80 – Director disqualification for false accounting to obtain a Bounce Back Loan

Director Disqualified for 8 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to obtain a Government-backed Bounce Back Loan (BBL) of £50,000 by submitting false or knowingly inaccurate information to the bank.

• The BBL was used to fund improvements to premises for the economic benefit of the leaseholder and the restaurant now trading from those premises rather than for the economic benefit of the Company, contrary to the explicit terms and purpose of the Covid support measures. In that:

Application & ineligibility

• On 12 May 2020 the Company obtained a BBL from Barclays Bank of £50,000.
• The Disqualified Director made the application for the BBL.
• A company was entitled to apply for a BBL of up to 25% of its turnover under the BBL scheme so the company’s turnover must have been stated as at least £200,000 to apply for a BBL of £50,000, ARL’s bank statements do not show receipts in excess of £200,000 in any annual year.

Use of BBL funds

• The BBL funds were used to fund renovation works and kitchen improvements at the premises from which the Company traded as a restaurant.

• The Disqualified Director held the lease to those premises personally and sublet them to the Company.

• A separate company was incorporated on 09 March 2021 and began operating from the premises as a restaurant.

The Disqualified Director approached the IP on 16 March 2021 to take steps to put ARL into CVL.

Case 81- Director disqualification for improper application for the BBL scheme

Director Disqualified for 3 years by a director signed undertaking.

The Disqualified Director allowed The Liquidated Company to apply for a Bounce Back Loan (BBL) of £30,000 on 16 May 2020 when it was not entitled to funds from the BBL scheme, in that:

•  A Business could apply for a BBL if it had been adversely affected by Covid-19 and was trading on 1 March 2020.
• The Liquidated Company was incorporated on 17 January 2020.
• The Liquidated Company’s BBL application form, which was signed by him on 16 May 2020, declared an estimated annual turnover of £120,000.
• The company’s bank statements show that between 17 January 2020 and 17 May 2020 the only credits into the account were from the directors totalling £292. These monies were used to pay a monthly direct debit for accounting services.
• Furthermore, the directors’ history within the company’s report to creditors states that the company commenced trading in July 2020.
• The company was not trading as of 1 March 2020 and therefore not adversely affected by Covid-19 and consequently not entitled to any loan from the BBL scheme.

 On 25 August 2021 MG The Liquidated Company entered liquidation with total liabilities of £31,263 of which £30,000 was the BBL.

Case 82 – Director disqualification for overstating turnover on a BBL application and miuse of funds from the scheme

Director Disqualified for 8 years by an undertaking agreed by the director.

On 11 May 2020 The Disqualified Director applied for a Government-backed Bounce Back Loan (‘BBL’) of £30,000 for The Liquidated Company by incorrectly overstating its turnover in the application and thereafter disbursed these moneys in manner that was subsequently indicated to me by the Insolvency Service was not for the economic benefit of the Company, contrary to the terms of the BBL scheme. In that:

Misapplication

• The Disqualified Director electronically signed a BBL application on 11 May 2020 stating that the Company’s turnover was £140,000 and requesting a loan of £30,000.

• The Company filed dormant accounts up to 30 November 2019 and the accounts for the subsequent year ended 30 November 2020 show losses of £22,629.

• On 12 May 2020 when the BBL was received the Company had a balance of £33.10 in its bank account.
• From the Company’s bank account being opened on 4 April 2019 up to 12 May 2020 the Company received income of £10,298, £10,000 of which related a Covid-support local authority grant which was received on 09 April 2020 and was subsequently transferred on 10 April 2020 to an associated party.
• The eligibility criteria as stated in the form completed by The Disqualified Director on 11 May 2021, made it clear that estimated turnover can only be used if the business was established after 01 January 2019.
• The Disqualified Director has asserted that the business was in existence prior to that date without supplying any evidence. The Company bank account was opened on 4 April 2019
• The Company was not entitled to a BBL using either the estimated turnover or actual turnover figures.

Misuse of Covid Support

• The BBL was received on 12 May 2020.
• On 13 May 2020, the day after the BBL was received, £18,000 was paid to an individual who had been a director of the Company up until 12 February 2019. A further £2,400 was again paid to the same individual on 19 January 2021.
• The Disqualified Director asserts these payments were in repayment of existing loans, that is pre-existing debt to a connected or associated person, with no evidence provided to support this.
• On 16 May 2020 £6,700 was paid for building works that The Disqualified Director asserts was at the former director’s home property.

The three payments identified, in addition to the dissipation of remaining funds, were contrary to the terms of the BBL lending, as there is no evidence of any economic benefit to the Company, nor is there any evidence of any material trading.

Case 83- Director disqualification for multiple breaches of the terms of the Bounce Back Loan Scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to obtain a Government-backed Bounce Back Loan (BBL) totalling £50,000 for which he knew or ought to have known it was not eligible for and did not use the BBL for the economic benefit of the Company, contrary to the terms of the BBL. In that:

• On 8 July 2020, The Disqualified Director declared within the BBL application that the Company’s business was engaged in trading or commercial activity in the United Kingdom as at the date of the application;
• The Company was incorporated on 10 February 2020 and there is no evidence of it ever trading;
• The Disqualified Director declared in the BBL application that the Company’s estimated turnover was £210,000;
• The Company never generated any revenue through trading and the only monies ever received into the Company’s bank account were the BBL funds;
• On 9 July 2020 £50,000 was received in the Company’s bank account, being the proceeds of the BBL;
• Between 27 August 2020 and 16 February 2021, the total sum of £29,820.00 was withdrawn in cash, and the remaining £20,605.00 was paid directly to The Disqualified Director via bank transfer;
• No evidence has been provided to demonstrate that any of the BBL was used for the economic benefit of the Company;

At liquidation, the Company’s only creditor was its bank who are owed £50,000 in respect of the BBL.

Case 84 – Director disqualification for breaching the terms of the Bounce Back Loan Scheme

Director Disqualified for 8 years by a signed undertaking of the director.

On 29 May 2020 The Company Director (The Company Director) caused The Dissolved Company (DC) to make a fraudulent application for a Bounce Back Loan of £50,000 by overstating annual turnover with the consequence that DC obtained a BBL that was greater than it was entitled to. In that:

•  Bounce Back Loans between £2,000 and 25% annual turnover (up to a maximum of £50,000) were made available from 5 May 2020 for business’s adversely impacted by the Coronavirus Pandemic. The terms stipulated the funds were to be used for the economic benefit of the business.
•  Accounts approved by the board on 17 July 2019 and 30 July 2020 for years ending 30 April 2019 and 30 April 2020 respectively show turnover of £59,956 and £47,637, however the turnover she stated on the BBL application was £200,000.

 The BBL funds of £50,000 were received on 2 June 2020 and transferred to her bank account on 4 June 2020 and no records have been supplied to the Liquidator to verify it has been used for the economic benefit of the company.

Case 85 – Director disqualification for breaching the terms of the BBL Scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to breach the terms of the Coronavirus Business Interruption Scheme (CBILS), in that, the company obtained a loan of £110,000 on 05 October 2020 and failed to use the loan amount (or part of it) to repay in full the outstanding balance of an existing business Bounce Bank Loan (BBL) obtained in May 2020.

• Following receipt of the CBILS funds and during the period 05 October 2020 to 11 May 2021, the date of The Disqualified Director’s resignation as director, The Liquidated Company’s payments to associated companies resulted in a net outflow of £63,784 and The Liquidated Company’s payments to The Disqualified Director resulted in a net outflow of £44,322, such payments constituted a misuse of the CBILS funds as defined in the CBILS terms.
• The Disqualified Director was registered as director of The Liquidated Company from 12 January 2017 to 11 May 2021 and the sole registered director from 15 February 2019.
• In May 2020 The Liquidated Company obtained a BBL of £50,000.
• On 01 October 2020 The Liquidated Company submitted a CBILS application and subsequently received a CBILS loan of £110,000 on 05 October 2020.
• Paragraph 6 (b) of the CBILS Self Certification, signed by The Disqualified Director on 01 October 2020, stated that The Disqualified Director as the borrower herby agrees and undertakes to the lender that it will use the Loan Amount (or part of it) to refinance (and hence) repay in full the Bounce Back Loan’ Scheme (BBLS) Amount.
• The Liquidated Company entered liquidation on 26 August 2021 and the BBL obtained by The Liquidated Company in May 2020 remained unpaid.
• Paragraph 20 of the CBILS Self Certification, signed by The Disqualified Director on 01 October 2020, stated that the purpose of the CBILS loan is Working Capital
• During the period 05 October 2020 to 11 May 2021, the date of The Disqualified Director’s resignation as director, The Liquidated Company’s payments to associated companies totalled £73,885 and resulted in a net outflow of £63,784.
• During the period 05 October 2020 to 11 May 2021, the date of The Disqualified Director’s resignation as director, The Liquidated Company’s payments to The Disqualified Director totalled £110,585 and resulted in a net outflow of £44,322.

The CBILS’ agreement confirmed that the funds should be used for working capital as per clauses 2.7 and 5 of the agreement and therefore the use of the funds detailed above were in contravention of the agreement.

Case 86- Director disqualification for breach of the BBL conditions

Director Disqualified for X years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to breach the conditions of the Bounce Back Loan Scheme by overstating The Liquidated Company turnover in order to obtain a larger loan of £50,000, when he knew or ought to have known that The Liquidated Company was only eligible for a loan to a maximum of £14,036 based on accounts filed for the calendar year 2019:-

• Under the Bounce Back Loan (BBL) scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of 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 turnover. To be eligible, businesses were required to be engaged in trading or commercial activity in the UK at the date of the application, carrying on business on 1 March 2020 and be adversely impacted by coronavirus;
• Filed accounts to the end of March 2019 show a turnover of £76,650 and filed accounts to the end of March 2020 show a turnover of £49,308 which gives an estimated turnover for the calendar year 2019 of £56,144.
• The BBL criteria allowed a business to borrow up to 25% of the Company’s turnover. Based on filed accounts covering the calendar year 2019, The Liquidated Company was eligible to borrow a maximum of £14,036;
• The Disqualified Director applied for a BBL of £50,000 on behalf of FSL on 23 May 2020 declaring in the BBL application that The Liquidated Company turnover for 2019 was £227,000;
• On 26 May 2020 a BBL of £50,000 was credited to The Liquidated Company bank account;

Total liabilities at liquidation amount to £72,696 which includes debts of £50,822 in respect of the BBL, £14,900 to trade creditors, £4,054 to employees and £2,920 to The Disqualified Director.

Case 87 – Director disqualification for false application to the Bounce Back Loan scheme

Director Disqualified for 5 years by a signed undertaking of the director.

The Disqualified Director caused The Liquidated Company to falsely apply for a Bounce Back Loan (BBL) of £50,000 when she knew or ought to have known that the company did not meet the turnover figure required to obtain a loan of that value. She caused the £50,000 BBL funds to be paid to her co-director and not for the economic benefit of LC in breach of the BBL terms and conditions.

•  Under the terms of the BBL scheme, companies were eligible for a BBL up to 25% of their turnover for the 2019 calendar year. On 18 July 2020, she applied for a BBL of £50,000 on behalf of and entered a turnover figure of £220,000 on the application form.
•  Analysis of LC’s company bank account discloses turnover as £80,728 for the 2019 calendar year, meaning LC would have been eligible for a maximum loan of £20,182.
•  The £50,000 BBL was credited into LC’s bank account on 20 July 2020.
•  Between 20 July 2020 and 22 July 2020, a total of £50,000 was paid out of LC’s bank account to her co-director, contrary to the terms of the BBL agreement which state that BBL funds must be used for the economic benefit of the business.

 The BBL of £50,000 remains outstanding at liquidation.

Case 88 – Director disqualification for inaccurate accounting for a BBL application

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to obtain a Government-backed Bounce Back Loan (BBL) totalling £30,000, received on 21 May 2020, to which the company was not fully entitled, by submitting inaccurate information. In that:

• The Liquidated Company ovision of inaccurate data
•  On 19 May 20202 she submitted, on behalf of the Company a BBL application form. The BBL application form stated a company was only entitled to a BBL of up to 25% of its turnover in the calendar year 2019;
•  The Company filed blank accounts for the years ending 28 February 2019 and 2020
•  Bank Statements show that the Company’s income between 1 March 2019 and 29 February 2020 was £29,039.18. Based on this, the company was entitled to a BBL of £7,260.
•  She declared in the BBL application that the Company’s turnover in the calendar year 2019 as £250,000 which she has confirmed was a projected figure which she provided in error.

 As at March 2020 the Company had contracted to supply goods or service, being tickets for a sporting event, to one customer only which was subsequently repaid to a Debt Collection totalling £15,988.50.

Case 89 – Director disqualification for false application for the BBL Scheme

Director Disqualified for 5 years by a director signed undertaking.

On 17 August 2020 The Banned Director caused The Liquidated Company to falsely make an application for a Government-backed Bounce Back Loan (BBL) of £45,000 when she knew or ought to have known that the eligibility criteria had not been met.

• Further, in any event she breached the terms of the BBL scheme as regards the utilisation of a Government backed Bounce Back Loan that it obtained on 19 August 2020.
•  To be eligible, The Liquidated Company was required to have been carrying on business on 01 March 2020 and engaged in trading at the time of the application. However, The Liquidated Company was not trading, and the director filed dormant accounts for the year ended 30 September 2020.
•  On 17 August 2020 she applied for a BBL of £45,000 stating a turnover of £200,000.
•  Accounts filed at Companies House for the year ended 30 September 2019 reveals that turnover for that period was £18,733.
•  £45,000 was credited to the company bank account on 19 August 2020.
•  £2,000 was paid into the director’s personal account on 20 October 2020. She states that this was taken out as a director’s loan.
•  £40,000 was paid into the director’s personal bank account on 26 January 2021 for investment purposes.
•  The payment made to her breached the conditions of the BBL which stated that its intended purpose was to provide economic relief to the business and to be used wholly for business purposes and not any personal purposes
•  She stated that the utilisation of the loan was for the advancement of the company’s financial position through investment; however, no evidence of due diligence was provided.

 On 14 July 2021 The Liquidated Company entered creditor’s voluntary liquidation with zero assets and liabilities of £61,684 including £45,000 to the bank in respect of the BBL and £15,244 to HMRC.

Case 90 – Director disqualification for breaching the terms of the Bounce Back Loan Scheme

Director Disqualified for 10 years by a director signed undertaking.

On 18 May 2020, The Disqualified Director caused The Liquidated Company to wrongly apply for a Coronavirus Bounce Back Loan (BBL) of £50,000, when he knew or ought to have known that The Liquidated Company was not eligible for that amount because it did not meet the turnover requirements for the BBL scheme, in that:

• The Disqualified Director professionally prepared accounts for Year-End 30 April 2019 recorded the annual turnover as £26,561.
• Bank analysis from The Liquidated Company accounting records shows income into The Liquidated Company was £33,396 for the whole calendar year of 2019.
• The Disqualified Director professionally prepared accounts for Year-End 30 April 2020 recorded the annual turnover as £35,066.
• On 18 May 2020, The Disqualified Director applied for a BBL of £50,000 on behalf of The Liquidated Company. On the BBL application form, The Disqualified Director declared that The Liquidated Company turnover was £200,000.
• On 20 May 2020, The Liquidated Company received BBL funds of £50,000.
• The Disqualified Director traded as a courier service and was receiving income during the Covid-19 pandemic, there is no evidence that the company had been adversely impacted by Covid-19.
• On 21 April 2021, The Liquidated Company bank statements show that £25,000 was paid to the Liquidator.

 On 17 May 2021, The Liquidated Company went into Liquidation. The balance on the bank account at the date of Liquidation was £0.

Case 91 – Director disqualification for misuse of BBL funds

Director Disqualified for 8 years by an undertaking agreed by the director.

On 04 May 2020 The Disqualified Director caused The Liquidated Company Limited to obtain a government backed Bounce Back Loan (BBL) totalling £27,500 and did not use it in its entirety for the economic benefit of the business, contrary to the terms of the BBL. In that:

•  On 04 May 2020 she submitted an application to the bank for a BBL in the sum of £27,500.
•  Within the BBL application she declared that the BBL would be used to provide economic benefit to the business and would be used wholly for business purposes and not personal purposes.
•  On 05 June 2020 the sum of £27,500, being the BBL, was paid into the Company’s bank account. Prior to receipt of the loan the account had a credit balance of £1,582.17.
•  In her questionnaire dated 23 July 2021 she stated that the BBL was used to pay for the Company’s expenses including accountancy fees, tax liabilities, bank fees, other standing order expenses and as part payment for the Insolvency Practitioner’s fees. The remainder of it was taken as a director’s loan.
•  An analysis of the Company’s bank statements shows that after receipt of the BBL funds on 05 June 2020 a total of £5,196.04 was paid to HMRC, the Company accountants and other creditors. In the period from 06 June 2020 to 23 August 2020 a total of £25,500 was paid directly to her via 4 bank transfers. On 30 October 2020 she repaid £2,500. On 06 and 07 June 2020 2 payments of £732 each were made to her for wages.
•  In her director questionnaire she states that the £25,500 were director’s loan payments.
•  In her email of 27 January 2022, she states that the funds she withdrew after receipt of the BBL were shown as a director’s loan because she was unable to take dividends as the Company had no profits.
•  After receipt of the BBL funds, net payments totalling £24,464 were paid to her from the Company bank account.
•  In the liquidation proceedings she paid a settlement of £5,000 for the funds that she took personally from the BBL.

 At liquidation on 19 January 2021, the Company owed its creditors £34,498.88, including £4,912.73 owed to her and the £27,500 of the BBL which remains unpaid.

Case 92 – Director disqualification for using BBL funds in contravention of the terms of the scheme

Director Disqualified for 9 years by a signed undertaking of the director.

The Liquidated Company (The Liquidated Company) applied for a Government backed Bounce Back Loan (BBL) of £50,000 which was received into The Liquidated Company’s bank account on 9 October 2020. Between 14 and 15 October 2020 The Disqualified Director caused the BBL funds to be used contrary to the terms of the BBL scheme in that funds were transferred from the company bank account for both his and his co-director’s personal benefit, with no economic benefit to the business. In that:

• On 9 October 2020 The Liquidated Company received £50,000 into its bank account in relation to the BBL.
• The terms of the BBL stated that its intended purpose was to provide economic benefit to the business and not for personal purposes.
• On 14 October 2020 £25,000 was transferred to The Disqualified Director for his personal benefit.
• On 15 October 2020 £25,000 was transferred to his The Disqualified Director’s co-director for his personal benefit.
• On 4 May 2021 The Disqualified Director made loan repayments to The Liquidated Company totalling £5,000. 

The Liquidated Company entered into creditors’ voluntary liquidation on 15 July 2021 with liabilities of £126,000 including £50,000 which is owed to in respect of the BBL and £74,000 which is owed to H M Revenue and Customs.

Case 93 – Director disqualification for making an ineligable application for a Bounce Back Loan

Director Disqualified for 5 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to obtain a Bounce Back Loan (‘BBL’) of £50,000 on 18 May 2020, when The Disqualified Director knew, or ought to have known, that it was eligible for a BBL of no more than £7,518 and failed to use all the funds for the economic benefit of the company, in that:

• The Disqualified Director was a director of The Liquidated Company from incorporation on 26 May 2015, and was the sole director from 02 February 2018 until his resignation on 28 July 2020.
• Companies adversely impacted by Covid 19 could obtain a BBL, which were limited to 25% of 2019 turnover, to a maximum of £50,000.
• Bank statements show a BBL of £50,000 was received by The Liquidated Company on 18 May 2020. To be eligible for such a loan, The Liquidated Company needed turnover of £200,000 during 2019.
• Accounts for the two years ending 31 May 2018 confirm cumulative turnover of £93,084.
• No further accounts were produced, and no records detailing turnover for the company have been provided to the liquidator for the period after accounts for 31 May 2018. Bank statements between 01 June 2018 and 31 May 2020 confirm receipts of £90,361. During this four year period, accounts and bank statements detail turnover of £183,445, less than the £200,000 turnover needed in 2019 to be eligible for a loan of £50,000.
• Bank statements for 2019 confirm receipts of £35,790, which indicate a maximum available BBL of £7,518, whereas The Disqualified Director caused The Liquidated Company to obtain the maximum available BBL of £50,000, which he knew, or ought to have known, that The Liquidated Company was not eligible for.
• Of the £50,000 received on 18 May 2020, £10,000 was transferred to The Disqualified Director on 19 May 2020, with £40,000 being paid to a third party on the same day.

At Liquidation on 25 March 2021, the BBL remained unpaid.

Case 94 – Director disqualification for breaching the conditions of the BBL scheme

Director Disqualified for 7 years by a signed undertaking of the director.

The Disqualified Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) totalling £50,000 that the disqualified director knew or ought to have known that the liquidated company was not eligible for. The BBL funds obtained were not entirely used for the economic benefit of the company.

• DD was a director of LC.
• DD applied for a BBL of £50,000 on behalf of LC that was received into LC’s bank account on 13 July 2020. The loan terms allowed LC to apply for a loan up to 25% of the annual turnover of the company, up to a maximum loan amount of £50,000.
• Accounts produced for LC for the year ended 31 October 2020 showed turnover of £88,164 and accounts for the period ended 31 October 2019 showed turnover of £21,437. This was not sufficient turnover to make LC eligible for a BBL of £50,000.
• The bank account that the BBL was credited to had not been used until the BBL monies were received. The balance of the account on 13 July 2020 after the BBL was credited to the account was £50,000. After 13 July 2020 the next £50,000 of expenditure included £32,656 paid to DD including £5,000 on 13 July 2020 and £15,000 on 18 July 2020. The BBL funds obtained were not entirely used for the economic benefit of the company.

At the date of liquidation the BBL remained unpaid.

Case 95 – Director disqualification for personal use of a Bounce Back Loan

Director Disqualified for 10 years by a director signed undertaking.

The Liquidated Company applied for a Government backed Bounce Back Loan (BBL) of £50,000 which was received into The Liquidated Company’s bank account on 9 October 2020. Between 14 and 15 October 2020 The Disqualified Director (The Disqualified Director) caused the loan funds to be used contrary to the terms of the BBL scheme in that funds were transferred from the company bank account for both his and his co-director’s personal benefit, with no economic benefit to the business. In that:

•  On 9 October 2020 The Liquidated Company received £50,000 into its bank account in relation to the BBL.
•  The terms of the BBL stated that its intended purpose was to provide economic benefit to the business and not for personal purposes.
•  On 14 October 2020 £25,000 was transferred to his co-director for his personal benefit.
•  On 15 October 2020 £25,000 was transferred to him for his personal benefit.
•  On 30 April 2021 he made a loan repayment to The Liquidated Company of £5,000.

 The Liquidated Company entered into creditors’ voluntary liquidation on 15 July 2021 with liabilities of £126,000 including £50,000 which is owed to in respect of the BBL and £74,000 which is owed to H M Revenue and Customs.

Case 96 – Director disqualification for non-repayment of a BBL

Director Disqualified for 5 years by an undertaking agreed by the director.

On 08 July 2020, The Disqualified Director caused The Liquidated Company to obtain a Bounce Back Loan (BBL) totalling £50,000 to which it was not fully entitled by overstating The Liquidated Company turnover. The BBL funds were also not used for the economic benefit of The Liquidated Company, contrary to the terms of the BBL scheme. In that:

•  Under the BBL scheme, businesses were able to apply for a BBL if they were carrying on business on 01 March 2020 and had been adversely affected by Covid. The criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover for 2019. The funds could only be used to provide economic benefit to the company.
•  The Liquidated Company turnover for 2019 was £10,069, meaning it was only entitled to a total of £2,517.25.
•  The Liquidated Company received no income from trading into its bank account after 24 June 2020.
•  On 11 November 2022, The Disqualified Director stated in his response to the Insolvency Service that The Liquidated Company ceased trading in July 2020.
•  On 08 July 2020, The Liquidated Company received a £50k BBL. To qualify for this amount, The Liquidated Company would have required a turnover of £200,000 or more.
•  On 10 July 2020, The Disqualified Director withdrew £50k from the company bank account as cash. No evidence has been provided by The Disqualified Director to show that this transfer was for the economic benefit of The Liquidated Company.

 At the date of liquidation, The Liquidated Company had creditors of £50k, which was the outstanding BBL.

Case 97 – Director disqualification for misuse of a Bounce Back Loan

Director Disqualified for 10 years by a director signed undertaking.

On 23 June 2020, The Disqualified Director, on behalf of the Company, applied for and received a Government backed Bounce Back Loan (BBL) in the sum of £18,750. The BBL funds were received into the Company’s bank account that same day. Contrary to the terms of the BBL scheme, the BBL funds were not used in their entirety for the economic benefit of the business. More specifically:

• On 23 June 2020, the Company applied for a BBL which was subsequently advanced in the sum of £18,750. The balance of the Company’s bank account was nil prior to receipt of the BBL.
• The Company’s bank statements record that the following day, on 24 June 2020, the sum of £18,750 was transferred from the Company’s bank account to an unknown bank account. The sort code indicated this account was ISA savings account.
• The bank have confirmed that the Company only held 2 accounts.

The Disqualified Director has not provided evidence of the ISA savings account being a Company account or provided confirmation of the account holder’s identity despite requests to do so. The Company’s BBL remained outstanding in the total sum of £18,750 at liquidation.

Case 98 – Director disqualification for false application for a Bounce Back Loan

Director Disqualified for 6 years by an undertaking agreed by the director.

That during June 2020 The Disqualified Director applied for a Government backed Bounce Back Loan (BBL) of £30,000 in the name of The Liquidated Company until it was changed on 27 August 2020 when she knew, our ought to have known, that the company turnover did not support such an application and that information supplied to support the application was false.

• The BBL criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover. The funds could only be used to provide economic benefit to the company and not for personal purposes.
• The loan application asked the company to provide details of its annual turnover, or its estimated annual turnover if the business was established after 1 January 2019. The application submitted by The Disqualified Director stated that the turnover of the company was £125,000 and that the company would like to borrow £30,000 under the BBL scheme.
• Analysis of the company bank statements show that for the period 3 January 2019 to 27 December 2019 the company had receipts totalling £34,304. Of this amount £23,773 received from Company A relates to personal funds brought into the company by The Disqualified Director. Accordingly, actual turnover for 2019 totalled £10,531 which, under the terms of the BBL, would equate to a maximum eligible loan of £2,633.
• Therefore, the company turnover was overstated by £114,469 and the company received £27,367 more monies than it was entitled to from the BBL scheme as a result.

At the date of Liquidation, the company had nil assets and trade creditors of £30,500 inclusive of £30,000 pertaining to the BBL.

Case 99 – Director disqualification for misrepresentation of turnover on a bounce back loan application

Director Disqualified for 8 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to breach the conditions of the Bounce Back Loan (BBL) scheme by obtaining a BBL of £50,000 when he ought to have known that The Liquidated Company was only eligible for a loan of £11,743, at most, and thereby caused The Liquidated Company to receive £38,257 more than it was entitled to, in that:

• The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan). Based on turnover from the 2019 and 2020 financial statements, The Liquidated Company would have been entitled to receive £11,743.
• The Liquidated Company’s financial statements for the year ending 30 November 2019 show a turnover of £32,120.
• The Liquidated Company ceased to trade in March 2020 and the financial statements for the year ending 30 November 2020 show a turnover of £14,850.
• On 05 July 2020 The Disqualified Director incorrectly stated in the BBL application turnover for 2019 to be £250,000 instead of £46,970 and he stated rather than using 2019 turnover he used an estimated turnover for 2020 to complete the BBL application when the estimate of turnover for 12 months from formation was a provision only available for those companies that were formed after 01 January 2019. The Liquidated Company was incorporated on 16 November 2017.
• On 06 July 2020, funds of £50,000 were credited to The Liquidated Company’s bank account.

At the date of liquidation on 20 September 2021, a total of £160,267 was due to creditors including the full amount of the BBL.

Case 100 – Director disqualification for using false information to obtain a Bounce Back Loan

Director Disqualified for 7 years by a director signed undertaking.

The Disqualified Directorcaused or allowed The Liquidated Company to apply for and obtain a Government backed Bounce Back Loan (BBL) totalling £50,000. The BBL application included false or inaccurate information. Thereafter in breach of the BBL scheme the BBL was not used in its entirety for the economic benefit of the business of the Company. In that:

• in August 2020 the Company applied for a BBL of £50,000;
• on 17 August 2020 the sum of £50,000, being the BBL, was paid into the Company bank account. Prior to receipt of the BBL the bank account balance stood at £9,967.21 in credit;
• in the BBL application form the annual turnover for the Company is stated as £200,000. This is notwithstanding that that: (i) the annual accounts for the Company for the period ended 29 February 2020 stated turnover for the Company as £164,987, and (ii) an analysis of turnover in the Company bank statements for the period 15 August 2019 to 14 August 2020 disclosed turnover as £128,957;
• the BBL application form requested an up to date annual turnover figure. You knew or ought to have known that the turnover of the company was not £200,000. By overstating the turnover, the company received the maximum amount of £50,000, which it was not entitled to;
• Based on turnover of £128,597, the maximum amount of BBL loan the Company was entitled to was in the region of £32,100. The Company therefore received £17,900 more than it was entitled to
• following the first nationwide lockdown, a partial reopening of pubs and bars was allowed on 09 July 2020 and on 06 October 2020 a full lockdown was in place until 02 November 2020
• following receipt of the BBL between 18 August 2020 and 12 October 2020 the Company paid £5,000 to you, £21,250 to your co-directors, and £4,500 to a connected third party;
• the BBL was used to facilitate the payments to you, your co-directors, and the connected party, which the Company could not otherwise have afforded to pay. These payments were not made in the economic benefit for the business
• the Company continued trading following receipt of the BBL and ceased trading on 08 July 2021;

at liquidation in July 2021, the Company owed its creditors at least £50,210.71, including the BBL of £50,000 which remains unpaid.

Case 101 – Director disqualification for breaching the terms of the BBL scheme

Director Disqualified for 5 years by a signed undertaking of the director.

The Disqualified Director, whilst acting as a director of The Liquidated Company although not formally appointed as such, caused The Liquidated Company to breach the conditions of the Bounce Back Loan (BBL) Scheme, by applying for and obtaining a BBL of £50,000 when he knew or ought to have known that The Liquidated Company was not entitled to this sum. A proportion of the funds obtained were also used for personal purposes rather than for the economic benefit of the business, as was required by the terms of the BBL scheme.

•  The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan).
•  On 06 August 2020 The Disqualified Director, giving his position as ‘Director’, applied for a BBL of £50,000, which The Liquidated Company received on 07 August 2020;
•  For a company to be eligible for a BBL of £50,000, an annual turnover of £200,000 was required, the turnover figure concerned being that for the calendar year 2019;
•  In the BBL application, The Disqualified Director stated that The Liquidated Company had a turnover of £250,000. However The Liquidated Company’ financial statements show turnovers of £54,221 and £46,717 respectively for the years ended 31 March 2019 and 31 March 2020;
•  Based on The Liquidated Company’ turnover for the year ended 31 March 2019, the largest BBL the company was entitled to receive was a loan of £13,556;
•  The Liquidated Company’ therefore received £36,444 more monies than it was entitled to from the BBL scheme
•  His co-director has indicated that £35,0000 of the BBL funds were used to pay personal credit card debts and bank analysis shows that in the period immediately following receipt of the BBL on 7 August 2020 to 11 August 2020, £20,956 was used to repay personal credit.

 The Liquidated Company entered liquidation on 05 October 2021 with outstanding liabilities of £60,313, including the bank for the full amount of the BBL.

Case 102 – Director disqualification for using incorrect tunerover to apply for a Bounce Back Loan

Director Disqualified for 14 years by Court Order.

On 3 August 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to obtain a Bounce Back Loan (BBL) of £49,700 using overstated turnover figures in the loan application form, when the company would have been entitled to a maximum loan of £5,516. Consequently, LC received more monies than it was entitled to from the BBL scheme. From the loan proceeds received, he used £46,000 of those monies for his own personal benefit. In that:

•  On 3 August 2020 LC obtained a BBL of £49,700 despite its turnover for the period 16 July 2018 to 31 July 2019 being only £15,354 (turnover for the year 31 July 2020 was only £22,062). A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019.
•  Between 5 August 2020 and 7 August 2020 £49,000 was paid to a third party. On the 7 August the third party paid £46,000 to him. The terms of the BBL stated that its intended purpose was to provide economic benefit to the business and not for personal purposes.
•  Having received the BBL of £49,700 on 3 August 2020, he used £46,000 for personal benefit on 7 August 2020.

 On 7 October 2021 LC entered into creditors’ voluntary liquidation with liabilities of £49,700 which is owed in respect of the BBL.

Case 103 – Director disqualification for breaching the terms of the BBL Scheme

Director Disqualified for 10 years by a director signed undertaking.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) Limited (The Liquidated Company) to breach the terms and conditions of the Bounce Back Loan (BBL) Scheme by overstating The Liquidated Company’s turnover in order to obtain a larger loan of £50,000 when she knew or ought to have known that The Liquidated Company was only entitled to £25,791 based on sales income received for 2019. Of the £50,000 The Liquidated Company received, £47,000 was transferred to a third-party with no economic benefit provided to the company, contrary to the use of a BBL.

•  The Liquidated Company BBL scheme criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (with a maximum loan of £50,000), for the purpose of a business carried on or intended to be carried on by the applicant.
•  The Liquidated Company BBL states that the agreement is to provide economic benefit to the business and that the BBL will be used wholly for business purposes and not personal purposes.
•  On 19 May 2020, an application was submitted to apply for a BBL. The Liquidated Company BBL application stated The Liquidated Company’s turnover for 2019 as £280,000.
•  Bank statements show The Liquidated Company’s banked income for 2019 was £103,165. The Liquidated Company was entitled to a maximum BBL of £25,791.
•  On 20 May 2020, BBL funds of £50,000 were paid into The Liquidated Company’s bank account.
•  On 27 May 2020, 28 May 2020 and 07 September 2020, funds totalling £47,000 were transferred to a third-party account. There is no evidence that the funds were applied for the economic benefit of The Liquidated Company.
•  The Liquidated Company was placed into creditors voluntary liquidation on 29 March 2021.

 At Liquidation, £105,804 was owed of which £50,000 was in respect of outstanding BBL, £4,966 were to trade creditors, £40,838 to her and £10,000 to a former director.

Case 104 – Director disqualification for using inacurate information to apply for a Bounce Back Loan

Director Disqualified for 8 years by an undertaking agreed by the director.

• On 26 May 2020, The Disqualified Director applied for and obtained a Government-backed Bounce Back Loan (‘BBL’) of £45,000 for The Disqualified Director. He provided false or knowingly inaccurate information regarding The Disqualified Director’ turnover in 2019 causing The Disqualified Director to receive £38,966 to which it was not entitled, and the proceeds of the loan were not used for the economic benefit of the business, contrary to the terms and conditions of the BBL scheme. In that:
• Obtaining a BBL
•  The BBL scheme permitted a loan of up to 25% of a business’ turnover in the calendar year 2019 or estimated turnover if it had been established after 01 January 2019.
•  The Disqualified Director was incorporated and commenced trading in June 2015.
•  Its bank statements record income of £24,136 in 2019, which would have entitled The Disqualified Director to a BBL of no more than £6,034.
•  On 26 May 2020, he completed an application form for a BBL from The Disqualified Director’ bank, self-certifying that The Disqualified Director’ turnover in 2019 was £180,000 and requesting a loan of £45,000.
• Disbursal of the BBL
•  On 28 May 2020, the BBL was paid into The Disqualified Director’ current account.
•  On 08 June 2020, £45,000 was transferred to The Disqualified Director’ saver account.
•  Between 21 August and 14 October 2020, a total of £34,000 was transferred back into The Disqualified Director’ current account and on the same day as each transfer in, the same amount was withdrawn as cash and/or a transfer to an unknown account.
•  In addition, in October 2020 the remaining BBL monies in The Disqualified Director’s saver account, £11,000, were also transferred to the same unknown account.
•  He has not provided any evidence that these cash withdrawals or transfers to an unknown account were used for the economic benefit of the company.

 At the liquidation date, the full amount of the BBL remained outstanding.

Case 105 – Director disqualification for non-repayment of a Bounce Back Loan

Director Disqualified for 10 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to breach the terms of the Coronavirus Business Interruption Loan Scheme (CBILS), in that the company obtained a loan of £250,000 on 29 March 2021 and failed to use some of those funds to repay an existing Bounce Back Loan (BBL) of £50,000 obtained on 09 August 2020. The company subsequently entered into Creditors Voluntary Liquidation on 23 December 2021 leaving the BBL unpaid.

• Between 1 July 2020 and 30 September 2020 The Disqualified Director (The Disqualified Director) utilised for his own personal benefit at least £21,200 obtained by The Liquidated Company (LC) from a Bounce Back Loan (BBL), contrary to the terms of the BBL scheme. In that:
•  On 30 June 2020 a BBL of £32,000 was paid into the Company’s bank account.
•  Between 1 July 2020 and 30 September, 2020 he withdrew sums totalling £21,200 and utilised these funds by reducing the credit on his Directors Loan Account by the same amount.
•  These payments were not for the economic benefit of the company.

 LC Statement of Affairs shows a deficiency, as regards creditors, of £84,027, which includes amounts owed to trade and expense creditors (£18,702), banks/financial institutions (£54,938, including the £32,000 bounce back loan provision), employee claims (£10,000) and HMRC (£3,287).

Case 106 – Director disqualification for making a false Bounce Back Loan application

Director Disqualified for 5 years by a signed undertaking of the director.

On 10 February 2021 The Disqualified Director caused The Liquidated Company to make a false Bounce back loan (BBL) application of £30,000 on behalf of LC when he knew or ought to have known that LC was not entitled to access the scheme. On 24 February 2021 he caused LC to apply for and receive a further BBL advance of £20,000 which he knew or ought to have known LC was not entitled to. He made wrongful declarations by overstating LC turnover when it was not eligible to receive a BBL. The BBL funds were not used for the economic benefit of LC, contrary to the BBL scheme criteria.

•  Under the Bounce Back Loan scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of 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 turnover. To be eligible, businesses were required to be engaged in trading or commercial activity in the UK at the date of the application, carrying on business on 1 March 2020 and be adversely impacted by coronavirus.
•  LC was incorporated on 22 August 2019.
•  LC filled dormant accounts for year ending 31 August 2020.
•  On 10 February 2021 he applied for a bounce back loan of £30,000 on behalf of LC declaring it was adversely impacted by coronavirus, it was trading on 1 March 2020, was trading at the time of application and its estimated turnover was £1,200,000.
•  On 12 February 2021 bounce back loan funds of £30,000 are received into LC bank account.
•  On 24 February 2021, a further advance on BBL of £20,00 is received into LC bank account.
•  Bank account analysis shows that the company received no trading income from date of incorporation to date of Liquidation.
•  Between15 February 2021 and the date of liquidation payments totalling £44,000 were made to an associated company, £4,002 by way of cash withdrawals and £1,611 towards his personal expenses.

 Total liabilities at liquidation amount to £75,100 which include debts of £50,000 in respect of BBL, £25,000 to the director.

Case 107 – Director disqualification for making a false application for a Bounce Back Loan

Director Disqualified for 4 years by a director signed undertaking.

The Disqualified Director (The Disqualified Director) provided false information and caused The Liquidated Company Limited to breach the conditions of the Bounce Back Loan (BBL) Scheme by making an application for £48,000 when he knew or ought to have known that the Liquidated Company was eligible for £9,480 increasing the level of the company’s liabilities by £38,520 in that:-

• The BBL Scheme was open to businesses engaged in trading or commercial activity in the UK at the date of the application and carrying on business on 1 March 2020 who were adversely affected by coronavirus. Businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of 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 turnover. Under the BBL scheme businesses were also required to use the loan only to provide economic benefit to the business and confirm that they understood the costs associated with repayment of the loan and that they are able and intend to complete timely repayments in the future
• The Liquidated Company was incorporated on 7 August 2018 and began trading immediately thereafter.
• The Liquidated Company’s accounts for year ended 31 August 2019 (signed by Mr. The Disqualified Director on 7 August 2020) showed turnover of £35,563 and bank statements for the year ending 31 December 2019 showed receipts of £37,923, resulting in eligibility for a BBL not exceeding £9,480.
• On 26 June 2020 The Disqualified Director applied for a BBL and stated that THe Liquidated Company’s turnover was £198,500 and on 29 June 2020 GTSV received £48,000 in respect of the BBL.

On 11 January 2022 the Liquidated Company entered liquidation with liabilities of £50,683, of which £48,000 was in respect of the BBL

Case 108 – Director disqualification for making a BBL application for a non-trading company

Director Disqualified for 10 years by an undertaking agreed by the director.

The Banned Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) of £50,000 on 9 May 2020 at a time when it had ceased trading activity in the UK, was not affected by the coronavirus pandemic and used overstated turnover figures in its application. Consequently, The Liquidated Company was not eligible for the BBL funds it received. On 11 May 2020 The Liquidated Company obtained a BBL of £50,000 which it was not entitled to. In that:

• The BBL Scheme allowed a business to apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019. In its application The Liquidated Company’s turnover was stated as £215,000.
• Accounts submitted to Companies House show The Liquidated Company was insolvent as at 30 June 2019 on a balance sheet basis.
• Bank records show in the calendar year 2019 The Liquidated Company generated an income of £137,542 allowing a BBL of £34,386. As a result, The Liquidated Company received £15,614 more than it was entitled to under the BBL scheme, assuming it satisfied the other conditions of the scheme, which it failed to do.
• The BBL scheme conditions provided that the business must be engaged in trading or commercial activity in the UK at the date of the application and been adversely affected by coronavirus.
• The Liquidated Company had ceased trading activity in the UK by the time the BBL application was made. The Liquidated Company made its final online sales order on 23 March 2019; The Liquidated Company’s website was closed following this last sale. Payments from a third-party online payments system into The Liquidated Company’s bank account in respect of its online sales ceased after August 2019. The Liquidated Company’s bank records show no further sales were made after 23 March 2019.
• On 28 May 2020 funds of £49,675 were paid out of The Liquidated Company’s bank account which the director states to a new supplier that The Liquidated Company had never used previously, based in Slovakia, this supplier subsequently failed to deliver any goods or return the funds to The Liquidated Company.
• The Banned Director failed to ensure The Liquidated Company undertook adequate due diligence checks in respect of the new supplier prior to transferring funds.

On 21 June 2021 The Liquidated Company entered liquidation with total liabilities of £107,808, of which £201 was owed to HMRC, £51,192 was the BBL and £56,415 was owed to trade creditors.

Case 109 – Director disqualification for using false information to obtain a Bounce Back Loan

Director Disqualified for 9 years by a signed undertaking of the director.

On 25 September 2020 The Disqualified Director caused The Liquidated Company to make a false application for a Bounce Back Loan (BBL) by providing false information to a lender to obtain a BBL totalling £50,000 when she knew or ought to have known that The Liquidated Company was eligible for a BBL loan based on its turnover of no more than £20,913.

•  The Bounce Back Loan criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover.
•  In the BBL application form completed and signed by her, she stated that the turnover for the 2019 calendar year was £205,000.
•  Extracts from the company’s financial statements show a turnover of £83,654 in the period 01 October 2018 to 30 September 2019 which would make it eligible for a loan of £20,913.
•  On 25 September 2020 a bounce back loan of £50,000 was paid into LC bank account.

 Creditors at the date of liquidation total £58,453 comprising of the £50,000 Bounce back loan, Trade and Expense creditors of £4,569, £3,791 owed to her and £93 to HMRC.

Case 110 – Director disqualification for applying for a BBL without repayment

Director Disqualified for 9 years by a director signed undertaking.

The Banned Director a director of The Insolvent Company caused The Insolvent Company to apply for a Bounce Back Loan (BBL) of £50,000 at a time when he knew or ought to have known that the company was insolvent and had no prospect of repaying it.

• The Insolvent Company received the funds on 03 July 2020 and used the funds contrary to the terms of the bounce back loan scheme by making payments totalling £50,000 on the same day to his wife and co-director in a further reduction of the balance due on her director loan account (DLA).
• The Insolvent Company traded as Energie Fitness Canterbury. A franchised gymnasium and fitness centre.
• The Insolvent Company was incorporated on 22 September 2016. The Banned Director was appointed on 09 April 2018 as a joint director.
• The Insolvent Company ceased trading on, or around 30 July 2020.
• The last year end accounts year ended 30 September 2019 signed by The Banned Director on 29 June 2020 showed The Insolvent Company was £26,435 balance sheet insolvent.
• The Insolvent Company’s business plan required a monthly membership of 950 clients. At its peak of trading the company had only 500 members, which had fallen to 350 just prior to March 2020. Memberships fees generated an income totalling only £460 between 23 March 2020 and the end of July 2020. The Insolvent Company’s only other income from 23 March 2020 was HMRC reclaims totalling £17,702
• The DLA in the year- ended 30 September 2019 accounts showed BD co director to be a creditor of The Insolvent Company for £108,276. By 02 July 2020 the DLA owed had reduced to £82,300. The BBL was applied in its entirety to reducing the DLA to £32,115.
• In the period 03 July 2020 to 30 July 2020 payments to other creditors totalled £4,166

Discounting the DLA, other creditors in the period from 30 September 2019 to liquidation increased from £219,872 to £230,299.

Case 111 – Director disqualification for obtaining a Bounce Back Loan that the company was not eligible for

Director Disqualified for 10 years by a signed undertaking of the director.

In May 2020 The Disqualified Director (The Disqualified Director) caused The Dissolved Company (DC) to obtain a £50,000 government bounce back loan (BBL) when the company was not eligible for a loan of that amount in that:

• In order to be eligible for a BBL, both Government and Barclays Bank guidance which states:
• That the applicant must be trading in the UK prior to application.
• The applicant borrow for £2,000 to £50,000 (up to 25% of the company turnover)
• That the applicant use the funds for the economic benefit of the company.
• On the BBL application dated 12 May 2020 which was signed electronically by The Disqualified Director he stated the annual turnover of the company was £250,000.
• Company Accounts made up to 31 July 2020 show an annual turnover for DC was £56,512. The BBL scheme allowed businesses to borrow up to 25% of their annual turnover.
• Bank statements reveal income to 12 May 2020 of £32,982. Estimated turnover in the first year of trading would be calculated at £78,940. This would entitle DC to a loan of £19,735.

At liquidation on 14 December 2021 £45,821 of the BBL remained outstanding.

Case 112 – Director disqualification for using false information to acquire a bounce back loan

Director Disqualified for 6 years by a signed undertaking of the director.

On 11 May 2020 The Company Director (The Company Director) caused The Dissolved Company (‘The Dissolved Company’), to fraudulently apply for a £50,000 Government backed Bounce Back Loan (‘BBL’) by including false information relating to the level of turnover as of 30 September 2019 and failed to ensure that the BBL funds were used for the economic benefit of the Company, in that:

 The Dissolved Company was incorporated on 29 September 2017.

 The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan). For a company to be eligible for a BBL of £50,000, an annual turnover of £200,000 was required, the turnover figure concerned being that for the calendar year 2019;

 The application for the BBL recorded a turnover of £790,000 and the maximum of £50,000 was advanced on 12 May 2020.

 The company’s accounts for the year ended 30 September 2019 declares turnover at £47,968. Based on the 2019 turnover the maximum BBL loan The Dissolved Company was entitled to was £11,992. Therefore, The Dissolved Company was not eligible for £38,008 of the BBL received.

 On 13 May 2020, a payment of £50,000 was paid to his personal account to reimburse him in part for expenses he had occurred on behalf of the company. This payment breached the terms of the BBL which states that its intended purpose was to provide economic benefit to the business and not for personal purposes.

 On 23 March 2022 The Dissolved Company went into liquidation following a winding up petition. At liquidation The Dissolved Company had outstanding liabilities of at least £1,368,037 including the BBL which remained unpaid at liquidation.

2. On 11 May 2020 The Company Director (‘The Company Director’) caused The Liquidated Company (‘LC’), to fraudulently apply for a £47,000 Government backed Bounce Back Loan (‘BBL’) by including false information relating to the level of turnover as of 30 April 2019 and failed to ensure that the BBL funds were used for the economic benefit of the Company, in that:

 PNX was incorporated on 08 October 2012.

 The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan). For a company to be eligible for a BBL of £50,000, an annual turnover of £200,000 was required, the turnover figure concerned being that for the calendar year 2019;

 The application for the BBL recorded a turnover of £325,000 and £47,000 was advanced on 12 May 2020.

 The company’s accounts for the year ended 30 April 2019 declares turnover at £88,033. Based on the 2019 turnover the maximum BBL loan LC was entitled to was £22,008. Therefore, LC was not eligible for £27,992 of the BBL received.

 On 13 May 2020, a payment of £48,000 was paid to his personal account. This payment breached the terms of the BBL which states that its intended purpose was to provide economic benefit to the business and not for personal purposes.

 On 11 May 2022 LC went into liquidation following a winding up petition. At liquidation LC had outstanding liabilities of at least £214,276 including the BBL which remained unpaid at liquidation.

As director of the Liquidated Company (‘LC’), between 01 August 2021 and 31 October 2021, The Company Director (‘The Company Director’) caused LC to submit false VAT repayment claims totalling £247,833, in that:

 LC submitted VAT returns for period ending 08/21, 01 August 2021 to 31 August 2021, reclaiming VAT totalling £83,340.

 LC submitted VAT returns for period ending 09/21, 01 September 2021 to 30 September 2021, reclaiming VAT totalling £85,215.

 LC submitted VAT returns for period ending 10/21, 01 October 2021 to 31 October 2021, reclaiming VAT totalling £79,277.

 On 11 May 2022, LC went into liquidation following a winding up petition. At liquidation LC had outstanding liabilities of at least £214,276 including £26,036 in HMRC liabilities.

 On 13 May 2022, HMRC notified LC that checks had been completed on the claims for VAT repayments for periods ending 08/21, 09/21 and 10/21. They stated that invoices and bank statements supplied in support of these claims appear not to be for genuine supplies.

 They state that checks made to contracts and planning documents supplied as supporting evidence for the projects the company claimed to be working on during these VAT period appear not to be for genuine projects for this company.

 On 16 June 2022, HMRC issued amendments to the amounts claimed on VAT returns. The VAT claims totalling £247,833 were adjusted to £0.

Case 113 – Director disqualification for breaches of the BBL Scheme

Director Disqualified for 9 years by a director signed undertaking.

On 7 June 2021, The Banned Director, caused or allowed The Insolvent Company to use funds amounting to £30,000 received from a Bounce Back Loan for purposes other than the economic benefit of the company, contrary to the Bounce Back Loan conditions, in that:

 The Insolvent Company was incorporated on 19 October 2012

 He was a joint director of The Insolvent Company from 26 September 2018 to the liquidation date of 30 November 2021

 On 26 January 2021 his co-director applied for Bounce Back Loan on behalf of The Insolvent Company.

 A loan agreement dated 28 January 2021, signed for and on behalf of The Insolvent Company by his co-director states that the loan provided was for the purpose of providing economic benefit to the business including, but not limited to, working capital or investing in the business and to support trading or commercial activity in the United Kingdom.

 On 29 January 2021, The Insolvent Company received £50,000 into its bank account in relation to the Bounce Back Loan. The Insolvent Company balance on the account was then £50,044.62

 On 7 June 2021, £30,000 was transferred to a connected company.

 On 30 November 2022 The Insolvent Company entered CVL with assets of £19,500 being the balance of cash at bank and creditors of £75,000 of which £50,000 was the Bounce Back Loan

 The Insolvent Company £30,000 transfer to the connected company was not used for the economic benefit of The Insolvent Company, contrary to the Loan agreement dated 28 January 2021.

Case 114 – Director disqualification for breaches of the terms of the BBL Scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to make a false application for a Bounce Back Loan (BBL) by providing false information to a lender to obtain a BBL totalling £50,000 when he knew or ought to have known that LC was eligible for a BBL loan based on its turnover of no more than £18,899.

 The Bounce Back Loan criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover. The funds could only be used to provide economic benefit to the company and not for personal purposes.

 In the BBL application form completed and signed by him, he stated that the turnover for the 2019 calendar year was £350,000.

 Accounts for the year ended 30 September 2019 show an annual turnover of £75,594.

 Based on this NTBL would have been eligible for a loan of no more than £18,899

 On 13 May 2020 a bounce back loan of £50,000 was paid into LC bank account.

 Creditors at the date of liquidation total £72,990 comprising of the £50,000 Bounce back loan, £19,000 to him and £3,990 to HMRC.

Case 115 – Director disqualification for false application to the BBL scheme

Director Disqualified for 5 years by a signed undertaking of the director.

On 28 May 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to make a false application for a Bounce Back Loan (BBL) by providing false information to a lender to obtain a BBL totalling £50,000 when she knew or ought to have known that LC was eligible for a BBL loan based on its turnover of no more than £27,000. Consequently, LC received more monies than it was entitled to from the BBL scheme

The company traded from June 2019 to April 2021

The Bounce Back Loan criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover. The funds could only be used to provide economic benefit to the company and not for personal purposes.

In the BBL application form completed and signed by The Disqualified Director on 28 May 2020 The Disqualified Director stated that the turnover for the 2019 calendar year was £200,000.

The Disqualified Director stated that the turnover of LC in 2019 was an average of £8,000 per month.

LC was incorporated on 10 June 2019 and its turnover in each of the three months prior to April 2020 was less than £9,000 per month. Based on these figures LC would have been eligible for a loan of no more than £27,000 at most.

On 01 June 2020 a bounce back loan of £50,000 was paid into LC bank account.

Between 01 June 2020 to 22 February 2021 cash withdrawals totalled £30,950. The Disqualified Director has provided no evidence to show that these funds were used for the economic benefit of the Company and were contrary to the conditions for the use of a BBL.

Creditors at the date of liquidation total £55,000 comprising of the £50,000 Bounce back loan and £5,000 to The Disqualified Director.

Case 116 – Director disqualification for breaches of the terms of the COVID BBL scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

From at least 9 May 2020, The Disqualified Director (The Disqualified Director) abrogated her duties as a director of the Liquidated Company (LC) and as such, allowed LC to obtain a Government backed Bounce Back Loan (BBL) totalling £50,000, which was not used in its entirety for the economic benefit of the business as required. More specifically:

 On 9 May 2020, £2,000 was paid to her. It has been stated that this was a payment for work carried out for LC but no evidence of work having been carried out has been provided.

 On 15 May 2020 and 18 May 2020, two payments of £10,000 each were paid to a third party by way of an investment in that third party’s business.

 On 3 June 2020 and 7 June 20220, £3,000 and £10,000 respectively was paid to a connected party. It has been stated by her co-director that this was a payment for work carried out for LC, but no evidence of work having been carried out has been provided.

 She has stated that other than the payment to herself, she has no knowledge of the other payments made from the BBL.

Case 117- Director disqualification for false application for the BBL Scheme

Director Disqualified for 9 years by a signed undertaking of the director.

In February 2021 The Disqualified Director caused The Liquidated Company to provide misleading information to a bank to obtain a Bounce Back Loan (BBL) of £50,000 which The Liquidated Company received on 01 February 2021, when he knew or ought to have known that The Liquidated Company was eligible for a BBL of no more than £20,337 in that:

The Disqualified Director was the sole director of The Liquidated Company from incorporation on 20 April 2015.

The accounts for period ending 30 April 2019 confirm that The Liquidated Company had a total turnover of £81,346

The accounts for period ending 30 April 2020 confirm that The Liquidated Company had a turnover of £84,095.

BBL’s were limited to a maximum of 25% annual turnover in 2019.

The Disqualified Director applied for a BBL for the value of £50,000, which was paid into the company bank account on 01 February 2021.

The Disqualified Director stated on the application form that the turnover for The Liquidated Company for 2019 was £210,000.

The Disqualified Director has failed to explain or provide any evidence to why he used the £210,000 turnover figure on the application form.

Bank statements show from 01 May 2020, the first day after the last accounts, to 18 February 2021, the company received a trading income of £124,740.

By providing the misleading information, The Liquidated Company obtained a BBL of £50,000, at least £29,663 in excess of the BBL amount that it was eligible for.

Creditors at liquidation total £68,770, which includes the BBL of £50,000

Case 118- Director disqualification for fraudulently applying for the BBL Scheme

Director Disqualified for 2 years by a director signed undertaking.

The Company Director caused The Dissolved Company to fraudulently apply for a Bounce Back Loan (BBL) by overstating MHM’s turnover in order to obtain funds of £50,000 when he knew or ought to have known that The Dissolved Company was only entitled to a maximum of £8,764 based on estimated sales income for 2019. Out of the £50,000 obtained, at least £19,000 was used for his personal benefit. In that:

The Dissolved Company traded from November 2016 to June 2021 as meat retailers

The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover in the calendar year 2019, with a maximum loan of £50,000 for the purpose of a business carried on or intended to be carried on by the applicant;

The BBL scheme states the company’s turnover figure, even if self-certified by the applicant with no checks or evidence required, cannot be over-estimated by more than 25% in order to obtain a larger loan;

Bank statements show that The Dissolved Company income for this period from 02 January 2019 to 20 December 2019 to be circa £35,054;

On 15 August 2020, The Company Director applied for a BBL of £50,000 for The Dissolved Company stating the turnover as £200,000 on the application form;

On 17 August 2020, BBL funds of £50,000 were paid into MHM’s bank account. The Dissolved Company was entitled to a maximum of £8,764;

On 18 August 2020, £19,000 was transferred to The Company Director’s personal account and £6,000 was transferred to the company secretary;

On 20 August 2020, £19,990 was transferred to an unidentified account;

Inadequate records have been delivered up to the Liquidator so does not explain how these payments benefitted The Dissolved Company;

At Liquidation, The Dissolved Company liabilities totalling £89,150 remained outstanding of which £50,000 was in respect of the BBL.

Case 119 – Director disqualification for breaches of the terms of the bounce back loan scheme

Director Disqualified for 6 years by a director signed undertaking.

On 28 June 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company International Limited (The Liquidated Company) to make a false application for a Bounce Back Loan (BBL) by providing false information to a lender to obtain a BBL totalling £50,000 when he knew or ought to have known that The Liquidated Company was eligible for a BBL loan based on its turnover of no more than £23,043. he used £50,000 of those monies for his own personal benefit and not for the economic benefit of The Liquidated Company.

 The Bounce Back Loan criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover. The funds could only be used to provide economic benefit to the company and not for personal purposes.

 In the BBL application form completed and signed by him on 28 June 2020 he stated that the turnover for the 2019 calendar year was £800,000.

 Extracts from the company’s financial statements show a turnover of £68,000 in the period 11 February 2019 to 29 February 2020 which would make it eligible for a loan of £17,000.

 Bank Statements for the period 01 February 2019 to 29 February 2020 show funds paid in totalling £92,174 which would make The Liquidated Company eligible for a loan of, at most, £23,043.

 On 26 June 2020 a bounce back loan of £50,000 was paid into The Liquidated Company’s bank account.

 On 02 July 2020 he transferred £50,000 from The Liquidated Company’s bank account to his personal bank account.

 Creditors at the date of liquidation total £56,900 comprising of the £50,000 Bounce back loan £900 owed to Capital One and £6,000 to HMRC.

Case 119 – Director disqualification for false application to the BBL scheme

Director Disqualified for 7 years by an undertaking agreed by the director.

On 12 May 2020, The Company Director (The Company Director) caused The Dissolved Company (DC) to fraudulently apply for a Bounce Back Loan (BBL) of £30,000 and used all the loan for his personal benefit when he knew or ought to have known that DC was not eligible for the loan under the terms of the scheme, in that:

Lending requirements/declarations

(i) Trading

 The BBL application required the Applicant to self-declare that the business was carrying on its business on 1 March 2020 and was engaged in trading or commercial activity in the United Kingdom as at the date if the BBL application (i.e. on 12 May 2020) ignoring any temporary cessation due to Covid-19.

 DC filed dormant accounts for the period ended 31 August 2019.

 Analysis of DC’s bank statements do not identify any genuine income from sales was received at any time.

 Hel has confirmed that the Company never commenced trading.

(ii) Turnover

 The BBL Scheme allowed businesses to borrow between £2,000 up to 25% of a business’ turnover for the calendar year ended 31 December 2019 with the maximum loan available being £50,000.

 The BBL application declares that annual turnover for the calendar year ended 31 December 2019 was £120,000.

 DC filed dormant accounts for periods ended 31 August 2019 which were approved by him.

(iii) Adversely impacted by Covid

 The BBL application required the applicant to confirm that the business had been adversely impacted by Covid.

 The BBL application confirms that the applicant self-declared that the business has been impacted by Covid.

 He has confirmed that DC never commenced trading.

Use of moneys obtained

 On 13 May 2020 the sum of £30,000 was paid into DC’s Bank Account. Prior to receipt of the BBL, the balance on the Account was £4.

 On 13 May 2020, the total sum of £30,000 was paid to him personally by way of three separate transfers in the sum of £10,000.

 He has provided no evidence that the BBL funds in the sum of £30,000 transferred to him personally were used for the economic benefit of the business.

 At liquidation, the BBL of £30,000 remains outstanding.

Case 120 – Director disqualification for misuse of BBL Funds

Director Disqualified for 10 years by a director signed undertaking.

The Disqualified Director caused the insolvent company to misuse the funds received from the government-backed bounce back loan (BBL) scheme totalling £50,000 by failing to use them entirely for the economic benefit of the company, in that:

The Disqualified Director’s application for the insovent company’s BBL was signed and dated on 14 May 2020. On 18 May 2020 July the bounce back loan funds of £50,000 was received into the bank account.

On 18 May 2020, the same day that the bounce back loan funds were received, payments of £49,000 and £1,000 were made to an associate company of The Disqualified Director.

The BBL has not been used for the economic benefit of the insovent company in that the entirety of the loan was used for the sole benefit of an associate company.

By the date of liquidation, the creditors are estimated at £85,097 of which £50,000 is owed to the bank under the bounce back loan.

Case 121 – Director disqualification for over applying for a Bounce Back Loan

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director (‘The Disqualified Director’) caused The Liquidated Company (‘The Liquidated Company’) to breach the terms of the bounce back loan scheme (‘BBL’) by applying for a loan of £33,000 when he knew or ought to have known that the maximum loan it was eligible for was £15,548. In that:

A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019.

In the application, The Disqualified Director stated The Liquidated Company had a turnover of £132,667 for calendar year 2019 and requested a loan of £33,000.

The Liquidated Company bank statements, Sage accounting and VAT reconciliation information reflects turnover for the calendar year 2019 was up to £62,194.

Based on this turnover figure The Liquidated Company was entitled to a maximum loan of £15,548.

Case 122 – Director disqualification for breaches of the use of BBL funds

Director Disqualified for 9 years by a signed undertaking of the director.

On 6 May 2020 The Disqualified Director caused The Liquidated Company to obtain a government-backed Bounce Back Loan (BBL) totalling £50,000 and did not use it in its entirety for the economic benefit of the business, contrary to the terms of the BBL. In that:

On 11 May 2020 £50,000 was received into the Company’s bank account, being the proceeds of the BBL. Prior to receipt of the BBL, the account balance was £1,992.

On 6 August 2020 the sum of £30,000 was received into the Company’s account. On 07 August 2020 the sum of £60,000 was paid directly to The Disqualified Director’s personal bank account.

No evidence has been provided to demonstrate that any of the BBL was used for the economic benefit of the Company.

As at liquidation the entire BBL remained outstanding to the bank.

Case 123- Director disqualification for false application for a bounce back loan

Director Disqualified for 14 years by Order of the Court.

On 18 November 2020 The Disqualified Director caused the Insolvent Company to obtain a Bounce Back Loan (BBL) of £50,000 using overstated turnover figures in the loan application form. Consequently, the Insolvent Company received more monies than it was entitled to from the BBL scheme and it failed to use the BBL funds for the economic benefit of the Insolvent Company. In that:

 A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019.

 On 18 November 2020, the Insolvent Company obtained a maximum BBL of £50,000 despite its turnover for the period 7 July 2018 to 6 July 2019 and 7 July 2019 to 6 July 2020 being only £27,402 and £22,782 respectively, therefore the Insolvent Company received more than it was entitled to.

 At 18 November 2020, the Insolvent Company ’s bank account balance was £9,936.79.

 Between 18 November 2020 and 31 March 2021, payments totalling £55,200 were received in to the Insolvent Company ’s bank account, of which £50,000 were BBL funds and £5,200 were JRS Grants.

 Between 23 November 2020 and 31 March 2021, payments out of Igmo100’s bank account totalled £65,089, of which £58,000 was withdrawn in cash.

 The terms of the BBL stated that its intended purpose was to provide economic benefit to the business and not for personal purposes. He has not provided any evidence to show that the funds were used for the economic benefit of the business.

 On 15 November 2021, the Insolvent Company entered into creditors’ voluntary liquidation with liabilities of £76,410 including £50,000 which is owed in respect of the BBL.

Case 124- Director disqualification for breaches of the conditions of the BBL scheme

Director Disqualified for 5 years by a director signed undertaking.

On 06 May 2020, The Disqualified Director (‘The Disqualified Director’) caused The Liquidated Company (LC) to breach the terms and conditions of the Bounce Back Loan (BBL) Scheme by applying for a £50,000 loan to which The Disqualified Director knew, or ought to have known, LC was not entitled, in that:

Under the terms and conditions of the BBL scheme, a company was entitled to apply for a BBL of up to 25% of its turnover for the 2019 calendar year provided the company was established before 2019.

LC was incorporated on 16 September 2002.

Annual accounts for the years ending 30 November 2016, 2017, and 2018 record turnover of £96,195, £29,165, and £30,923, respectively.

Analysis of the bank statements between 01 January 2019 and 31 December 2019 record turnover of £113,623, of which 25% is £28,406.

On 06 May 2020, The Disqualified Director applied for a BBL of £50,000 on behalf of LC, disclosing a turnover of £250,000 on the application form.

Of creditors totalling £64,436, listed on the statement of affairs in liquidation, the provider of the BBL is owed £50,000.

Case 125- Director disqualification for proving false information on a BBL application

Director Disqualified for 10 years by a signed undertaking of the director / an undertaking agreed by the director / a director signed undertaking.

On 14 October 2020, the Disqualified Director caused the Liquidated Company to provide misleading information to a bank to obtain a Bounce Back Loan (BBL) of £41,000 when he knew or ought to have known that The Liquidated Company was not eligible for a loan of that amount and has not provided any evidence to show that payments totalling £39,710 made between 26 October 2020 and 12 November 2020 were used for the economic benefit of the company. In that:

The Bounce Back Loan criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover. If a business commenced trading after 1 January 2019, the estimated annual turnover could be used.

On the BBL application dated 14 October 2020, The Disqualified Director stated the Liquidated Company’s turnover was £166,000 and applied for a BBL of £41,000 and confirmed that the amount of Bounce Back Loan applied for was equal to or less than 25% of annual turnover for 2019, or of the estimated annual turnover.

The Liquidated Company commenced to trade on 1 June 2019.

Accounts for the year ending 31 May 2020 show the Liquidated Company’s turnover was £45,552. Therefore, The Liquidated Company was only entitled to a Bounce Back Loan of at least £11,388 under the Bounce Back Loan scheme.

On 26 October 2020 the £41,000 BBL was credited to the Liquidated Company’s bank account. As a result, The Liquidated Company received £29,612 more than it was entitled to under the Bounce Back Loan scheme.

Between 26 October 2020 and 12 November 2020 payments of £39,710 were made from the Liquidated Company’s bank account for which no supporting documentation has been provided to show that they were for the economic benefit of the company.

On 28 December 2021 the Liquidated Company entered liquidation with total liabilities of £45,996.28, of which £41,000 was the Bounce Back Loan and £4,996.28 was owed to HMRC.

Case 126 – Director disqualification for overstating turnover to obtain a BBL

Director Disqualified for 4 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused The Disqualified Director The Liquidated Company (ICL) to breach the conditions of the Bounce Back Loan (BBL) Scheme by overstating annual turnover in order to obtain a loan of £50,000, when he knew or ought to have known that ICL was not eligible for a loan of that amount, in that :

The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan)

On 24 September 2020 The Disqualified Director applied for a BBL on behalf of ICL and stated on the BBL application form that ICL’s turnover was £205,800

ICL’s end of year accounts for the period ended 30 September 2019 show turnover of £25,170, meaning that ICL was eligible for a maximum loan of £6,293

On 28 September 20202 ICL received £50,000 in respect of the BBL

The BBL remains outstanding at the date of liquidation.

Case 127- Director disqualification for breaches of the terms of the BBL scheme

Director Disqualified for 10 years by a signed undertaking of the director.

1. On 11 May 2020, The Liquidated Company received a bounce back loan from Santander in the sum of £49,000 (the ‘BBL’). The Disqualified Director caused the Company to breach the terms of the BBL which stated that its intended purpose was to provide economic benefit to the business as the The Liquidated Company did not use the entirety of the loan monies for the economic benefit of the The Liquidated Company, in that:

1.1 The Disqualified Director caused the Company to apply for the bounce back loan prior to 11 May 2020;

1.2 The Disqualified Director told the BBL provider that the Company had turnover of £500,000 in 2019, whereas turnover shown in its accounts to 28 February 2019 was £184,237 and trade receipts into the Company bank account in the 2019/20 financial year were some £235,000;

1.3 The Company’s bank account had a credit balance of £150.45 immediately prior to receipt of the loan monies on 11 May 2020;

1.4 On 12, 16 and 27 May 2020 The Disqualified Director caused the Company to make payments to his personal bank accounts of £15,000, £10,000 and £10,000 respectively;

1.5 between 01 July 2020 and 10 February 2021 forty-one round-sum payments and two other payments were made to The Disqualified Director of a total of £30,576 (net of four payments by The Disqualified Director to the Company); and

1.6 The Statement of Affairs signed by The Disqualified Director upon liquidation on 29 March 2021 shows that the Company’s sole asset was an outstanding directors loan account due to be repaid by The Disqualified Director to the Company in the sum of £35,000 which was not repaid to the Company;

1.7 The Disqualified Director was made bankrupt on 28 June 2021. According to information provided by The Disqualified Director connected with his entry into bankruptcy, he spent around £32,000 of the bounce back loan monies for rent and other living expenses;

1.8 No repayments were made to the BBL provider shown in the Statement of Affairs as owed £49,000 with trade creditors of £500. According to the BBL provider the amount outstanding is £48,183.33.

Case 128 – Director disqualification for breaches of falsely applying for a BBL

Director Disqualified for 9 years by a director signed undertaking.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to breach the conditions of the Bounce Back Loan (BBL) Scheme by falsely applying for a Bounce Back Loan of £35,000.00 when he knew or ought to have known that The Liquidated Company’s turnover was insufficient to obtain a loan of that size. Furthermore, The Disqualified Director has failed to provide accounting records evidencing that the BBL funds were used for the economic benefit of The Liquidated Company, which was a requirement of the BBL scheme, in that:

 The BBL criteria allowed a business to borrow between £2,000.00 and up to 25% of the company turnover (up to a maximum of a £50,000.00 loan).

 Year ending accounts show turnover for y/e 28 February 2018 of £32,796.00 and for y/e 28 February 2019 of £35,759.00.

 Company bank statements from 01 March 2019 to 28 February 2020, shows a turnover of £46,812.76.

 On 14 May 2020, he applied for a BBL of £35,000 on behalf of The Liquidated Company. In the application form, he declared that The Liquidated Company’s up to date annual turnover was £140,000.00.

 On 18 May 2020, a £35,000.00 BBL was paid into the company bank account by Barclayloan.

 Two payments of £5,000.00 were made from The Liquidated Company bank account to the directors personal account on 18 May 2020 and 02 June 2020. No supporting documentation has been delivered up by him to explain the reason behind these payments.

 Two cash withdrawals were made from The Liquidated Company bank account on 20 May 2020 (£5,000.00) and 17 June 2020 (£20,000.00). No supporting documentation has been delivered up by him to explain the reason behind these withdrawals,

 At the date of the Liquidation on 26 July 2021, a total of £35,405.48 was owed to creditors, of which £35,000.00 was owed to the banks relating to the BBL, £304.48 claimed by HMRC and £101.00 claimed by the director.

Case 129- Director disqualification for overstating turnover on a BBL application

Director Disqualified for 5 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to breach the terms and conditions of the Bounce Back Loan scheme (‘BBLS’) by overstating the company’s turnover when applying for a Bounce Back Loan (‘BBL’) of £49,000, when it was eligible for a maximum loan of £7,180, in that:

The BBL Scheme was open to businesses engaged in trading or commercial activity in the UK at the date of the application and carrying on business on 1 March 2020 who were adversely affected by coronavirus. Businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover. The turnover figure was self-certified by the applicant.

The Liquidated Company was entitled to make an application for a BBL of up to 25% of its annual turnover for the 2019 calendar year.

The Liquidated Company annual accounts for the periods ending 31 May 2019, and 31 May 2020, record respective annual turnovers of £28,720 and £25,360, resulting in eligibility for a BBL loan not exceeding £7,180.

Under the terms and conditions of the BBL scheme as The Liquidated Company was incorporated on 09 May 2017 it was not entitled to estimate annual turnover in its application for a BBL. On an application dated 28 May 2020, The Disqualified Director self-certified on behalf of The Liquidated Company that its estimated annual turnover would amount to £206,000 and requested a loan of £49,000. The company was not eligible to estimate it’s turnover.

 At liquidation the company had liabilities of £74,485 including the BBL liability in full

Case 130- Director disqualification for breaches of overstating figures on a BBL application

Director Disqualified for 10 years by a signed undertaking of the director.

On 27 May 2020 The Banned Director caused The Liquidated Company to apply for a Government-backed Bounce Back Loan (BBL) totalling £25,000 using overstated turnover figures in the loan application form. Consequently the company received more monies than it was entitled to from the BBL scheme. He did not use the money obtained in compliance with terms of the scheme as it was not used for the economic benefit of the company. In that:

Overstatement of turnover

 He declared that the Company’s estimated turnover was £100,000 within the BBL application.

 The Company’s turnover for the year ended 31 August 2019 was £17,500 as stated in the Company’s trading accounts.

 Financial statements lodged at Companies House for the year ended 31 August 2019 asserted turnover was £60,202.

 The Company’s turnover for the year ended 5 April 2020 was £20,000 as stated in the Company’s trading accounts.

 A Company is entitled to apply for a BBL of up to 25% of its turnover under the BBL scheme, as such the Company was eligible for a BBL of no more than £5,000 per the Company’s trading accounts and bank statements, and no more that £15,050 per the Financial Statements lodged.

 The Company’s turnover was insufficient to be eligible to receive a BBL in the sum applied for and obtained, being £25,000.

Misuse of BBL funds obtained

 On 28 May 2020 £25,000 was received in the Company’s bank account, being the proceeds of the BBL.

 On the same day as the BBL was paid into the Company’s bank account, the sum of £24,000 was transferred to him directly.

 The terms of the BBL stated that its intended purpose was to provide economic benefit to the business and not for personal purposes.

 When asked what the BBL was used for he said that 50% of the bounce back loan was used to re-invest in the company and some was used on personal financial payments.

 The BBL was paid directly to him for his benefit. There is no evidence to demonstrate that 50% of the BBL was used for business expenditure and economic benefit of the Company.

 At the date of the liquidation, the only creditor was the BBL provider for £25,000.

Case 131 – Director disqualification for making a false application for a bounce back loan

Director Disqualified for 4 years by a signed undertaking of the director.

From 4 February 2020 to 14 January 2021 The Disqualified Director neglected his duties as a director of The Liquidated Company as without his proper oversight The Liquidated Company was able to make false applications for Covid support, in that:

The Disqualified Director states he was approached by an individual on a building site in January 2020 and asked to become a director of The Liquidated Company. He states the individual claimed to be unable to open a bank account and needed The Disqualified Director to do this and act as a silent partner;

The Disqualified Director states he set up a bank account for The Liquidated Company in January 2020 and on receipt passed the bank card and account information to the individual;

The Disqualified Director became a Director and sole shareholder of The Liquidated Company with effect from 4 February 2020;

The Disqualified Director states he was paid £2,000 in cash by the individual for agreeing to become a Director of The Liquidated Company;

The Liquidated Company submitted false applications for Small Business Grant Funds and The Liquidated Company received at least £30,000 to which it was not entitled

The Liquidated Company also applied for and received a £50,000 bounce back loan and no records have been delivered up to enable it to be evidenced whether it was entitled to this amount or whether the funds were applied for the appropriate purpose;

On 14 January 2021 The Disqualified Director’s resignation was electronically filed backdated to 6 June 2020.

Case 132- Director disqualification for applying for a BBL without eligibility

Director Disqualified for 5 years by a director signed undertaking.

On 05 June 2020, The Disqualified Director (The Disqualified Director) cause The Liquidated Company (The Liquidated Company) to make an inaccurate application for a Bounce Back Loan (BBL) totalling £17,500 when he knew or ought to have known The Liquidated Company was not eligible to receive that amount based on its turnover and that the information supplied to support the application was false, and the subsequent use of those BBL funds were to his personal benefit and not that of The Liquidated Company, in breach of the terms of the BBL.

The Bounce Back Loan criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover in the calendar year of 2019. If the company was incorporated after 01 January 2019 then an estimated annual turnover could be used by the applicant.

BBL Application.

The Liquidated Company was incorporated on 03 November 2017; in the BBL application form completed by The Disqualified Director on 05 June 2020, he stated that the turnover of The Liquidated Company for the 2019 calendar year was £800,000.

Accounts for the year ending 30 November 2018 and approved by The Disqualified Director on 01 August 2019 state that The Liquidated Company’ turnover for that year was £44,963. Based on this turnover, The Liquidated Company would have been entitled to obtain a maximum BBL of £11,240.

Accounts for the year ending 30 November 2019 and approved by The Disqualified Director on 28 August 2020 state that The Liquidated Company’ turnover for that year was £47,010. Based on this turnover, The Liquidated Company would have been entitled to obtain a maximum BBL of £11,752.

The Liquidated Company’ Loan Bank Account.

On 05 June 2020, BBL funds totalling £17,500 were paid into a loan bank account which was separate from the daily operating account of The Liquidated Company. Following this receipt the balance on this account was £17,500.

Between 08 June 2020 and 17 March 2021, the entirety of the BBL funds were expended from the loan account, of which £13,914 was paid to The Disqualified Director, and the remaining £3,586 was paid to unknown third parties.

On 08 June 2020, £12,500 of the BBL funds were transferred to The Disqualified Director. On 30 June 2020, a further £1,000 of the BBL funds were transferred to The Disqualified Director. On 17 March 2021, a further £414 if BBL funds were transferred to The Disqualified Director, which had the effect of emptying the loan account of remaining funds.

The Liquidated Company’ Daily Operating Account.

Analysis of the daily operating account of The Liquidated Company shows that between the time The Disqualified Director made the BBL application on 05 June 2020 and 17 March 2021, The Liquidated Company received funds totalling £31,893.

On 16 March 2021, there were funds totalling £2,821 available in the daily operating account of The Liquidated Company. On 17 March 2021, a single payment of £2,821 was made to The Disqualified Director, which had the effect of emptying the daily operating account of remaining funds.

The statement of affairs in the liquidation of The Liquidated Company reports creditors totalling £18,390, of which £17,500 is owed to the bank in respect of the unpaid BBL.

Case 133- Director disqualification for breaches of the terms of a BBL

Director Disqualified for 6 years by Order at trial.

Between 10 October 2020 and the date of administration, the banned director, failed to ensure that the Liquidated Company adhered to the terms and conditions contained within its Sale or Return Agreements (Agreements) in respect of Sellers’ vehicles. As a result, the Liquidated Company sold at least 12 vehicles but failed to remit the agreed amounts to sellers or finance companies on their behalf, as a result of which claims totalling £195,350 have been made. In total, claims have been made by 32 customers of the Liquidated Company, totalling at least £353,487.

The banned director caused the Liquidated Company to breach the terms of the Coronavirus Business Interruption Loan Scheme (CBILS), in that:

On 09 June 2020 the Liquidated Company received a Bounce Back Loan (BBL) of £50,000.

0n 08 July 2020 The Liquidated Company received a CBIL of £125,000.

The liquidated company breached the terms and conditions of the CBILS by failing to repay the BBL after obtaining the CBIL.

Case 134- Director disqualification for submitting false information to the BBL scheme

Director Disqualified for 6 years by Order of the Court.

The Disqualified Director caused the Liquidated Company to obtain a Government-backed Bounce Bank Loan (BBL) of £25,000 by submitting false information and failed to ensure that all of the funds received were used for the economic benefit of the company contrary to the terms of the BBL. In that:

The Disqualified Director declared that the Company’s estimated turnover was £100,050 within the BBL application. The Company’s turnover for the year ended 31 August 2019, as stated in the Company’s accounts was £30,940. The accounts were approved by the Board on 19 November 2019 and The Disqualified Director signed them off.

A Company was entitled to a BBL of up to 25% of its turnover under the BBL scheme. The Company’s turnover was insufficient to be eligible to receive a BBL in the sum of £25,000.

On 15 May 2020 £25,000 was received in the Company’s bank account, being the proceeds of the BBL and on the same day transfers totalling £22,800 were made to another bank account.

When asked what the £25,000 was used for, The Disqualified Director confirmed it was for personal use and acknowledged not for the economic benefit of the company.

The last filed accounts show that The Disqualified Director used the BBL towards paying himself £31,000 more than he paid himself in the previous year.

Case 135- Director disqualification for breaches of the terms of the BBL Scheme

Director Disqualified for 10 years by a director signed undertaking.

The Disqualified Director (hereinafter referred to as The Disqualified Director) caused The Liquidated Company to obtain a Bounce Back Loan (hereinafter referred to as BBL) at a time when he knew or ought to have known it was not eligible to do so and failed to use the BBL in its entirety for the economic benefit of The Liquidated Company in that:

 In order to be eligible for a BBL a business must have been carrying on its business on 01 March 2020 and engaged in trading of commercial activity;

 Bank Statements for The Liquidated Company show the last income from trading was on 20 September 2019;

 He made an application with a British Bank on 15 May 2020 for a BBL at the value of £40,000;

 On 17 May 2020 a BBL of £40,000 was credited to The Liquidated Company’s bank account with the account balance being £41,991.75;

 Between 17 May 2020 and 3 July 2020 a further £3,000 was paid into the bank account from a connected party;

 During the same period, he made payments out of the bank account (excluding interest and charges of £38.50) totalling £44,965.00. Of which £18,500.00 was paid directly to him and £26,465.00 was paid to connected parties, which have not been evidenced as being for the economic benefit of the company, leaving a balance of £0.75 in the bank account;

 On 21 June 2021, the bank account closed. The balance was £16.96 in credit.

 On 07 July 2021, The Liquidated Company entered into Liquidation with liabilities totalling £42,990.00 of which £40,000 corresponded to the BBL.

Case 136- Director disqualification for misuse of BBL funds

Director Disqualified for 10 years by an undertaking agreed by the director.

Between 6 June 2020 and 7 October 2020 The Company Director caused The Insolvent Company to breach the terms of the Bounce Bank Loan (BBL) scheme by applying funds totalling, £13,245 for his personal benefit and not for the economic benefit of The Insolvent Company and without the intention to complete timely repayments in the future resulting in loss to the bank of at least £15,000, and failed to give notice to the bank of the dissolution of The Insolvent Company as required by Section 1006 Companies Act 2006,.

 Under the BBL scheme businesses were required to use the loan only to provide economic benefit to the business, and not for personal purposes and confirm they have understood the costs associated with repayment of the loan and that they are able and intend to complete timely repayments in future.

 The Insolvent Company received a BBL of £15,000 on 5 June 2020

 Between 6 June 2020 and 7 October 2020 payments totalling £13,245, were made from the The Insolvent Company bank account;

o Payments totalling £7,835 referenced Holiday

o Cash withdrawals totalling £3,410

o Payments totalling £2,000 referenced Leeds

 On 14 July 2020, he applied to dissolve The Insolvent Company.

 As of 14 July 2020, the full amount of the BBL remained outstanding

  e Insolvent Companyfailed to given notice to the bank of its application for dissolution

 On 13 October 2020 The Insolvent Company was dissolved and the BBL of £15,000 remains outstanding.

Case 138- Director disqualification for breaches of the terms of application for a Bounce Back Loan

Director Disqualified for 6 years by an undertaking agreed by the director.

On 18 May 2020 The Disqualified Director caused or allowed The Liquidated Company to apply for a Bounce Back Loan (BBL) of £50,000 and used the funds for his personal benefit when he knew or ought to have known that The Liquidated Company did not meet the criteria for that loan:

1. In order to be eligible for a BBL, both the Government and the Royal Bank of Scotland’s guidance stated that a company has to be established and operating before 1 March 2020 and the maximum that could be claimed is £50,000 based on 20% of the company turnover in 2019.
2. On the 18 May 2020 The Liquidated Company made an application for a BBL in the sum of £50,000. Within the application a turnover of £230,000 was used.
3. Accounts to 31 May 2019 and 31 May 2020 previously submitted reveal a turnover of between £2,000 and £5,000.
4. On 20 May 2020 £50,000 was paid into the company bank account.
5. Bank accounts reveal that on 20 May 2020 he immediately withdrew £10,000 for his own use
6. Between 21 June 2020 and 28 September 2020 he withdrew a further £15,901
7. Between 20 May 2020 and 22 May 2020 £24,250 was expended through the company account to purchase Covid Personal Protection Equipment. No PPE was ever delivered.
8. Between 30 September 2020 and 18 May 2021 he withdrew additional £13,515 in salary, dividends and bank transfers.
9. At liquidation the bank where the sole creditor with a claim in the sum of £49,999.

Case 139 – Director disqualification for misuse of BBL funds

Director Disqualified for 5 years by an undertaking agreed by the director.

Between 03 June 2020 (the first transaction in the bank account) and 20 January 2021 (date the bank account was closed), The Disqualified Director caused or allowed the insolvent company (hereinafter referred to as the liquidated company) to obtain a Government Backed Covid-19 Bounce Back Loan (BBL) of £50,000 and failed to use it in its entirety for the economic benefit of the liquidated company contrary to the terms of the BBL scheme. In that:

the liquidated company was incorporated on 20 March 2019 and The Disqualified Director was appointed director on 27 January 2020.

On 03 June 2020, the sum of £50,000 was paid into the liquidated company’s bank account, being the BBL. Following the receipt of the loan, the account balance stood at £50,000 in credit;

In the application form, The Disqualified Director declared: I undertake to use the credit granted on the basis of this agreement only to provide economic benefit to my business, for example, providing working capital or investing in my business;

Between 04 June 2020 and 11 June 2020, a total of £47,853.83 were transferred out of the liquidated company’s bank account to a connected party. Following these transactions, the liquidated company’s account balance stood at £2,146.17 in credit;

Between 04 August 2020 and 27 August 2020, the liquidated company received additional Covid-19 related grants for £35,000 and made payments of £27,146.17. Following these transactions, the liquidated company’s account balance stood at £10,000 in credit;

On 20 January 2021, the bank clawed back this £10,000 and applied it to the outstanding BBL.

On 28 July 2021, the liquidated company entered Liquidation with Covid-19 support related liabilities of £63,000 of which £40,000 corresponded to the BBL.

On 17 and 20 August 2020, The Disqualified Director  caused or allowed the liquidated company to make a false representation to two Council/Local Authorities in order to obtain £35,000 of Coronavirus Retailer Grants. In that:

the liquidated company was incorporated on 20 March 2019 and The Disqualified Director was appointed director on 27 January 2020.

Between 17 August 2020 and 27 August 2020 the liquidated company submitted 24 Coronavirus Retailer Grant applications to different Council/Local Authorities for a total of £390,000 using forged supporting documents. Two of these applications were successful. Further three applications totalling £75,000 were submitted on 04 September 2020, 06 October 2020, and 09 June 2021.

On 24 August 2020, the sum of £25,000 was paid into the liquidated company’s bank account, being the grant from Council Authority A.

On the same day, a payment of £5,644.43 was made out of the liquidated company’s bank account to a connected party. At close of business, the account balance stood at £21,382.46 in credit;

On 25 August 2020, the sum of £10,000 was paid into LVD’s bank account, being the grant from Council Authority B.

On the same day, a payment of £9,315.00 was made out of the liquidated company’s bank account to a connected party, and the bank clawed back £12,000 to be returned to the Council Authority A. At close of business, the account balance stood at £10,067.20 in credit;

On 28 July 2021, the company entered Liquidation with Covid-19 support related liabilities of £63,000 of which £23,000 corresponded to the Coronavirus Retailer Grants.

Case 140- Director disqualification for breaches of the terms of a Bounce Back Loan

Director Disqualified for 9 years by a signed undertaking of the director / an undertaking agreed by the director / a director signed undertaking.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company Limited (The Liquidated Company) to breach a term of 2 Covid Support loans (the loans), a Bounce Back Loan (BBL) for £50,000 and a Coronavirus Business Interruption Loan (CBIL) for £100,000, obtained on 11 May and 19 August 2020, respectively. He failed to repay the BBL after obtaining the CBIL thereby breaching the terms of the loans. In addition, he has failed to provide adequate evidence of The Liquidated Company’s turnover or how the loan funds were used, so it is not possible to verify if the company was entitled to the amounts obtained and if the monies were used for the company’s benefit, as required by the loans’ terms, in that:

 A condition (the First Condition) of the BBL and CBIL schemes was that businesses effected by COVID-19 were able to apply, if eligible, for a single loan under one or the other of the schemes, but not both. However, a business could obtain a second loan if those funds were used to repay the first in full.

 A further condition (the Second Condition) of the BBL and CBIL schemes was that businesses effected by COVID-19 were able to apply, if eligible, for a loan of up to 25% of their turnover.

 Each loan was to be used for the promotion of the business.

 He made an application to Natwest for a £50,000 BBL, dated 06 May 2020, which included confirmation that the information provided in it was complete and accurate. The application form included the First and Second Conditions. On 11 May 2020, The Liquidated Company received the loan money.

 He made an application to Funding Circle for a £100,000 CBIL, dated 18 August 2020. He stated that the company’s annual turnover was £407,639. The application included confirmation that the information provided in it was complete and accurate. The application form included the First and Second Conditions. On 19 August 2020, The Liquidated Company received the loan money.

 There is no evidence that CBIL funds were used to repay the BBL to Natwest as required by the First Condition; the BBL remained outstanding at liquidation for £82,562.

 Adequate books and records of The Liquidated Company have not been delivered up to the Liquidator. It has not been possible to verify the 2019 turnover of The Liquidated Company, and therefore whether The Liquidated Company was eligible for the loans as per the Second Condition. For the same reason, it has not been possible to verify the use of the loans.

 The Liquidated Company’s net outgoings between 11 May 2020 and 28 July 2021 totalled £491,367, including the expenditure of the BBL and CBIL monies, £80,015, which he has stated was personal spending, and £93,911 of transfers to his personal bank accounts.

 Total liabilities at liquidation amount to £231,521 which includes debts of £214,765 in respect of the two covid loans.

Case 141- Director disqualification for breaches of the use of BBL funds

Director Disqualified for 5 years by a signed undertaking of the director.

On 18 May 2020 The Disqualified Director (The Disqualified Director) applied for and obtained a Government backed Bounce Back Loan (BBL) on behalf of The Liquidated Company (The Liquidated Company) in the sum of £50,000 and failed to use the whole amount of the BBL for the economic benefit of The Liquidated Company, in that:

 As part of the BBL application, applicants are required to confirm that the BBL will only be used for the economic benefit of the business.

 Following the receipt of the BBL, on 1 June 2020 he received £25,000 of the BBL funds into his personal bank account. This payment was not for the economic benefit of The Liquidated Company.

 The Liquidated Company ceased trading on 8 March 2021 with Nil assets and liabilities of £63,694 of which £50,000 was the BBL.

Case 142- Director disqualification for using false information on a bounce back application

Director Disqualified for 5 years by a signed undertaking of the director.

The Disqualified Director caused The Liquidated Company to submit false information resulting in The Liquidated Company obtaining publicly funded Covid support totalling £60,000 and thereafter The Disqualified Director used the moneys in a manner that benefitted him and was not for the economic benefit of The Liquidated Company, being contrary to the explicit terms and purpose of the Covid support measures. In that:

Government-backed Bounce Back Loan (‘BBL’)

On 18 June 2020 The Disqualified Director signed, on behalf of The Liquidated Company, an application for a BBL totalling £50,000;

The Disqualified Director self-certified that the business met the eligibility criteria, which included that it was trading on 01 March 2020 and had been affected by Covid-19;

The Disqualified Director stated that The Liquidated Company annual turnover was £200,000 and confirmed that this was equal to or less than 25% of the annual turnover for 2019;

He also undertook that the loan would only be used for the economic benefit of the business;

DPB’s accounts for the years ended 31 May 2017 to 31 May 2019 record no income, the accounts to 31 May 2020 disclose turnover of £354;

Bank statements show no trading income from February 2020 to June 2021

The full amount of the BBL was transferred to a third-party account on the same day that it was received (22 June 2020);

The Disqualified Director has stated that the money was paid to an associated company for rent accrued, although none was recorded in the accounts;

There is no evidence that The Liquidated Company materially traded, it did not meet the criteria that it was trading on 01 March 2020, it had not been adversely affected by Covid-19 and its turnover was not at the level stated on the loan application.

Local Council Covid Support Grant

LCSs accounts disclose minimal turnover in the year to 31 May 2020 and its bank statements record no trading income from February 2020 to June 2021;

An application was completed by The Disqualified Director on behalf of The Liquidated Company for a Council grant in which it was certified that it met the eligibility criteria and was trading on 11 March 2020;

The grant of £10,000, was paid into The Liquidated Company bank account on 08 April 2020

This money was transferred to a third-party account on 05 June 2020 and was not used for The Liquidated Company benefit as intended by the grant scheme.

Case 142- Director disqualification for breaches of the terms of application for the BBL scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) or (the Company) to apply for two Bounce Back Loans (BBL) totalling £37,500 using overstated turnover figures in the application forms. Consequently, The Liquidated Company received £37,500 more monies than it was entitled to from the BBL scheme. Furthermore, he failed to ensure that the BBL funds were used for the economic benefit of the Company, in that:

 A business could apply for a BBL of between £2,000 and £50,000 subject to a maximum of up to 25% of its turnover in 2019.

 In the first BBL application, The Liquidated Company’s turnover for 2019 was stated to be £150,000.

 Financial Statements detail that The Liquidated Company achieved zero turnover in the years ended 30 April 2019 and 30 April 2020 respectively.

 The Liquidated Company’s bank statements show total credits of £40,044.40 in the 2020 calendar year, of which £37,500 was received from the BBL scheme.

 On 02 July 2020 and 29 December 2020, The Liquidated Company obtained £33,000 and £4,500 respectively from the BBL scheme. The Liquidated Company received £37,500 more monies than it was entitled to.

 Between 03 July 2020 and 14 September 2021 bank statements show that £36,420 from the BBL funds were transferred to him and he has provided no evidence to show that these funds were used for the economic benefit of the Company.

 On 29 October 2021, The Liquidated Company entered into Creditor’s Voluntary Liquidation with total liabilities of £38,509.50 of which £36,959.50 was the BBL.

Case 143- Director disqualification for breaches of the terms of the BBL scheme

Director Disqualified for 3 years by a signed undertaking of the director.

The Disqualified Director, (The Disqualified Director) on behalf of the Company, applied for and received a Government backed Bounce Back Loan (BBL) in the sum of £50,000 for which the Company was not eligible by reason of the fact that (1) the Company was dormant at the time of the inaccurate information relating to turnover was provided to the BBL lender. In that:

Lending requirements/declarations

The BBL Scheme allowed businesses to borrow between £2,000 up to 25% of a business’ turnover for the calendar year ended 31 December 2019 with the maximum loan available being £50,000. The businesses were required to be active at the time of applying for a BBL.

In order to obtain a BBL for £50,000, the Company’s turnover would have to have been stated to be at least £200,000 in the calendar year ended 31 December 2019. The Company filed dormant accounts for the year ended 31 October 2019 and did not commence trading until receipt of the BBL.

The Company’s BBL remained outstanding in the total sum of £50,000 on liquidation.

Case 144- Director disqualification for breaches of

Director Disqualified for 9 years by a director signed undertaking.

In May 2020 The Disqualified Director caused or allowed The Liquidated Company to apply for and obtain a government-backed BBL from NatWest (the BBL lender) of £50,000 (‘the loan monies’) by providing, or allowing to be provided, inaccurate information as to its solvency in 2019 and did not use all the loan monies for the economic benefit of LC, contrary to the terms of the loan. These actions constituted a misuse of the Covid business support finance scheme. In that:

Application  criteria and mis-statements

 In submitting LC BBL application, his co-director declared on LC behalf that the company had not shown net liabilities in its 2019 accounts;

 According to LC financial statements for the year to 30 June 2019, the company had net current and total liabilities of £46,216 and £18,092 respectively.

Misuse of monies obtained contrary to terms of BBL

 LC current business account had an overdrawn balance of £1,980 immediately prior to receipt of the loan monies of £50,000 on 11 May 2020;

 The loan monies were not applied in full for the benefit of the Company, in that:

o On 14 May 2020 a transfer of £50,000 was made from the current business account to a business reserve account held by the company and, on 19 May 2020, from there to a second and new business reserve account which was opened with the £50,000 so transferred;

 From the second business reserve account a payment of £9,000 was made to a third party on 11 June 2020 in respect of a car purchased for him and/or for Co-Director and which did not become an asset of the company;

 From the second business reserve account a transfer back to the current business account was made on 17 July 2020 in the sum of £18,300 which on that same day was paid out to a car dealer in respect of a vehicle not purchased for LC but for him. At the time of the transfer of this £18,300 to the current business account, the balance on the current business account was £351.90.

 The Statement of Affairs signed by his co-director on 30 April 2021 shows the BBL lender as a creditor for the full value of the loan monies i.e. £50,000.

Case 145- Director disqualification for providing misleading information on a BBL application

Director Disqualified for 5 years by a signed undertaking of the director.

On 25 August 2020, The Disqualified Director caused react The Liquidated Company to provide misleading information to a bank, to obtain a Bounce Back Loan (BBL) of £50,000 when he knew or ought to have known that The Liquidated Company was not eligible for a loan of that amount. In that:

 He was the sole director of The Liquidated Company from incorporation on 6 March 2012.

 The Liquidated Company traded from 2012 until liquidation.

 Bank statements confirm receipt of a BBL of £50,000 on 26 August 2020.

 Accounts for the year ending 31 March 2019 show turnover as £76,510, and for year ending 31 March 2020 turnover was £82,300.

 BBLs were limited to 25% of 2019 ‘calendar year’ turnover. Using 3/12ths of 2019 turnover and 9/12ths of 2020 turnover this would suggest a turnover for the 2019 calendar year of £80,852. Using this extended period, The Liquidated Company would have been eligible for a BBL of no more than £20,713.

 In the BBL application dated 25 August 2020, he was asked ‘what is your annual turnover.’. He declared a turnover of £210,000, when he knew, or ought to have known, that this was incorrect.

 The application also asked ‘please confirm this is equal to or is less than 25% of annual turnover for 2019’ he confirmed ‘Yes’

 By providing the misleading information, The Liquidated Company obtained a BBL of £50,000, at least £29,287 in excess of the BBL amount that it was eligible for.

 Creditors at liquidation total £56,002 including the BBL of £50,000.

Case 146- Director disqualification for misuse of BBL Funds

Director Disqualified for 9 years by a signed undertaking of the director / an undertaking agreed by the director / a director signed undertaking.

On or around 23 June 2020 The Disqualified Director caused The Liquidated Company to provide false information overstating turnover to obtain a Bounce Back Loan (BBL) of £30,000 and failed to ensure the funds were used for the economic benefit of The Liquidated Company contrary to the terms of the scheme, in that:

 Bounce Back Loans between £2,000 and 25% annual turnover (up to a maximum of £50,000) were made available from 5 May 2020 for business’s adversely impacted by the Coronavirus Pandemic. The terms stipulated the funds were to be used for the economic benefit of the business;

 Accounts approved by him on 18 November 2019 for year ended 30 September 2019 show turnover of £2,501 so The Liquidated Company would have been eligible for a maximum loan of £2,000.

 He knew, or ought to have known, that the turnover information supplied to support The Liquidated Company loan application was false.

 The BBL funds of £30,000 were received on 23 June 2020 and transferred to his personal account on the same day and not used for the economic benefit of the company.

Case 147- Director disqualification for breaches of terms of use of a BBL

Director Disqualified for 10 years by an undertaking agreed by the director.

On 7 June 2021, The Banned Director caused or allowed The Insolvent Company to use funds amounting to £30,000 received from a Bounce Back Loan for purposes other than the economic benefit of the company, contrary to the Bounce Back Loan conditions, in that:

 The Insolvent Company was incorporated on 19 October 2012

 He was a joint director of The Insolvent Company from 27 September 2018 to the liquidation date of 30 November 2021

 On 26 January 2021 he applied for Bounce Back Loan on behalf of The Insolvent Company.

 A loan agreement dated 28 January 2021, signed for and on behalf of The Insolvent Company by him states that the loan provided was for the purpose of providing economic benefit to the business including, but not limited to, working capital or investing in the business and to support trading or commercial activity in the United Kingdom.

 On 29 January 2021, The Insolvent Company received £50,000 into its bank account in relation to the Bounce Back Loan. The Insolvent Company balance on the account was then £50,044.62

 On 7 June 2021, £30,000 was transferred to a connected company.

 On 30 November 2022 The Insolvent Company entered CVL with assets of £19,500 being the balance of cash at bank and creditors of £75,000 of which £50,000 was the Bounce Back Loan

 The Insolvent Company £30,000 transfer to the connected company was not used for the economic benefit of The Insolvent Company, contrary to the Loan agreement dated 28 January 2021.

In July 2020 The Disqualified Director (The Disqualified Director) caused The Disqualified Director The Liquidated Company and The Liquidated Company Services Ltd (The Disqualified Director) to breach the terms of a Government backed bounce back loan (BBL) by paying £28,000 to himself and not using those funds for the economic benefit of The Disqualified Director.

Case 203 – Director disqualification for misuse of multiple bounce back loans

Director Disqualified for 5 years by a director signed undertaking.

The Disqualified Director caused the insolvent company to breach the conditions of the Bounce Back Loan scheme by obtaining a 2nd BBL on 07 September 2020, despite a limited company only being allowed one Bounce Back Loan  / BBL. The Disqualified Director knew or ought to have known that the insolvent company was not entitled to a 2nd loan since it was stipulated in both the Bounce Back Loan  / BBL application she signed on 12 May 2020, and the 2nd application. Further, the Disqualified Director provided financial information she knew or ought to have known was incorrect in order to obtain the 2nd loan. In that:

The Disqualified Director was appointed as the sole director of DML on 19 November 2009.

A condition (The Condition) of the Bounce Back Loan scheme was businesses affected by COVID-19 were able to apply for a single loan of up to 25% of their turnover up to a maximum loan of £50,000.

The insolvent company SAGE data suggests that it had a turnover of £126,288 for the 2019 calendar year. Under The Condition, the insolvent companys turnover allowed a maximum Bounce Back Loan  of £31,572.

The Disqualified Director made an application for a £35,000 Bounce Back Loan

 dated 12 May 2020, which included confirmation that the information provided in it was complete and accurate. The application form included The Condition and stated that the insolvent company’s annual turnover for 2019 was £142,400. On 13 May 2020, the insolvent company received £35,000.

On or around 02 September 2020, the Disqualified Director made an application to a second lender for a £50,000 Bounce Back Loan. The application stated that the insolvent company’s  annual turnover for 2019 was £200,000. As part of the application, The Disqualified Director confirmed a statement that the Company had not previously received a Bounce Back Loan  and that the information provided was complete and accurate. On 07 September 2020, the insolvent company received £50,000 from the second lender.

Total liabilities at liquidation amount to £203,658 which includes debts of £88,391 in respect of the two BBLs.

Case 204 – Director disqualification for applying for a BBL that the company was not entitled to

Director Disqualified for 8 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to apply for a Bounce Back Loan (BBL) of £30,000 on 16 May 2020 when it was not entitled to funds from the BBL scheme, in that:

 A Business could apply for a BBL if it had been adversely affected by Covid-19 and was trading on 1 March 2020.

 The Liquidated Company was incorporated on 17 January 2020.

 The Liquidated Company’s BBL application form, which was signed by his co-director on 16 May 2020, declared an estimated annual turnover of £120,000.

 The company’s bank statements show that between 17 January 2020 and 17 May 2020 the only credits into the account were from the directors totalling £292. These monies were used to pay a monthly direct debit for accounting services.

 Furthermore, the directors’ history within the company’s report to creditors states that the company commenced trading in July 2020.

 The company was not trading as of 1 March 2020 and therefore not adversely affected by Covid-19 and consequently not entitled to any loan from the BBL scheme.

 On 25 August 2021 MG The Liquidated Company entered liquidation with total liabilities of £31,263 of which £30,000 was the BBL.

Case 205 – Director disqualification for personal use of BBL funds

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director caused the Liquidated Company to overstate its turnover in its application for a Bounce Back Loan (BBL) resulting in The Liquidated Company receiving a BBL of £50,000 on the 20 May 2020 which it was not eligible for. Furthermore, The banned director caused The Liquidated Company to transfer £26,000 of this money to himself between 20 May 2020 and 29 June 2020 and failed to show whether it was for the economic benefit of the company.

The Disqualified Director caused the Liquidated Company to overstate its turnover in its application for a Bounce Back Loan (BBL) resulting in the insolvent company receiving a BBL of £50,000 on the 29 June 2020 which it was not eligible. Furthermore, The Disqualified Director caused the bust company to transfer £43,000 of this money to himself and used £6,471 for personal expenditure between 02 July 2020 and 20 August 2020 and failed to show whether it was for the economic benefit of the company.

Case 206 – Director disqualification for overstating turnover on a BBL application

Director Disqualified for 3 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to make an application for a Bounce Back Loan (BBL) of £50,000, using an overstated turnover figure in the loan application form which he knew, or ought to have known, was false. Consequently, The Liquidated Company received more funds that it was entitled to, in that:

 A business 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.

 On 24th November 2020, he made an application for a BBL of £50,000 on behalf of The Liquidated Company stating the turnover was £200,000.

 The Liquidated Company’s turnover figures for the years ending 31.07.19 and 31.07.20 were £120,000 and £58,084 respectively.

 Analysis of bank statements shows an ex-VAT Turnover for the calendar year 2019 of £121,090, therefore the company was only eligible for a maximum BBL of £30,272.

 On 12th January 2022, The Liquidated Company entered into a Creditors’ Voluntary Liquidation with liabilities of £70,000, including £50,000 which is owed in respect of the BBL.

Case 207 – Director disqualification for breaches of the terms of the BBL Scheme

Director Disqualified for 5 years by a director signed undertaking.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (the company) to apply for and receive a Bounce Back loan (BBL) of £50,000, which the company was not fully entitled to, by overstating its turnover.

BBL APPLICATION:

A business could apply for a BBL of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019.

On 04 March 2020 The Disqualified Director approved the company’s accounts for the period 03 January 2019 to 30 January 2020 declaring turnover of £36,295. Therefore the company was entitled to a BBL of no more than £9,074.

On 11 June 2020 The Disqualified Director, on behalf of the company, declared within a BBL application the company’s turnover was £200,000 and the requested loan of £50,000 was equal to or less than 25% of annual turnover for 2019.

The Disqualified Director explained he had insufficient knowledge to apply for the BBL therefore he engaged a 3rd party company who informed him all offshore companies were entitled to a BBL of £50,000. The Disqualified Director provided the Liquidator with an invoice declaring the fee paid to the assisting company. Enquiries undertaken by INSS revealed no evidence of the company trading from the address stated on the invoice, furthermore the telephone numbers and email address stated are all invalid therefore it is not possible for INSS to verify the validity of the invoice and explanation provided.

On 15 June 2020 £50,000 was credited to the company bank account, which increased the credit balance to £50,000.39

Case 208 – Director disqualification for multiple breaches of the terms of the BBL Scheme

Director Disqualified for 5 years by an undertaking agreed by the director.

On 7 January 2021 The Liquidated Company applied for a Government backed Bounce Back Loan (BBL) in the sum of £27,500 which was received on 11 January 2021. Contrary to the terms of the BBL scheme, The Disqualified Director failed to ensure these funds were used for the economic benefit of the business. In that:

On 7 January 2021, the Company applied for a Top-Up BBL in the sum of £27,500. These funds were received into the Company’s bank account on 11 January 2021.

A lump sum payment of £25,000 was paid to The Disqualified Director on 11 January 2021, the same day as the Top-Up BBL in the sum of £27,500 was received by the Company.

The Company’s Top-Up BBL remained outstanding in the total sum of £27,500 on liquidation.

Case 209 – Director disqualification for false application to the BBL Scheme

Director Disqualified for 7 years by Order of the Court.

On 29 September 2020 The Company Director caused The Dissolved Company  to fraudulently apply for a Bounce Back Loan (BBL) totalling £50,000 when he knew or ought to have known that The Dissolved Company was not eligible for the loan, with the result that the company received funds it was not entitled to:

 The Bounce Back Loan criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover. Where trade had commenced after 01 January 2019, a BBL was restricted to 25% of estimated turnover for the period of 12 months after it had started to trade.

 The funds could only be used to provide economic benefit to the company and not for personal purposes.

 The eligibility criteria was that a business was established and actively trading at 01 March 2020. The Dissolved Company was incorporated on 01 July 2019 and is stated to have started trading in January 2020.

 The Dissolved Company opened a bank account on 24 July 2019, a review of the account shows the account was not used until 26 June 2020. Between 24 July 2019 and 29 September 2020, the date the BBL was applied for, The Dissolved Company did not receive any monies into the bank account in respect of turnover.

 In the BBL application form dated 29 September 2020 the annual estimated turnover for The Dissolved Company was stated to be £220,000. As trade had commenced in January 2020 and The Dissolved Company had no turnover in the nine months to September 2020, The Dissolved Company would have needed to turn over £220, 0000 in the remaining three month period in order to achieve the turnover as stated by him in the BBL application. He therefore knew, or ought to have known, that the figure of £220, 000 was false.

 On 30 September 2020 a bounce back loan of £50,000 was paid into The Dissolved Company’s bank account.

 Between 30 September 2020 and 19 March 2021 payments totalling £18,250 were made to him and payments totalling £16,500 were made to his co-director. These payments were not made for the economic benefit of the company.

 Creditors at the date of liquidation are £53,000 comprising of the £50,000 Bounce back loan and £3,000 stated to be owed to the directors.

Case 210 – Director disqualification for overstating turnover on a BBL application

Director Disqualified for 10 years by a signed undertaking of the director.

The Disqualified Director caused The Liquidated Company to overstate its turnover on its application for a Bounce Back Loan (BBL) to receive £50,000 for which it was not eligible. In that:

 The Liquidated Company financial statements for the year ending 31 March 2020 shows a turnover of £1,300.

 The Liquidated Company financial statements for the year ending 31 March 2019 shows a turnover of £2,515.

 The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan).

 The Liquidated Company bank statements for 2019 show no income or trading activity.

 Based on the company’s turnover as stated in the annual accounts, WMCL would not have been eligible for a BBL.

 On 10 May 2020 he applied for a BBL of £50,000 on behalf of the company, stating in the loan application that The Liquidated Company turnover for 2019 was £287,521.

 On 11 May 2020, funds of £50,000 were credited to The Liquidated Company bank account. No evidence has been provided to show that the BBL was used for the economic benefit of the business.

 At the date of liquidation on 09 August 2021, a total of £53,500 was due to creditors including the full amount of the BBL.

Case 211 – Director disqualification for personal use of a BBL

Director Disqualified for 5 years by a director signed undertaking.

On 7 May 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to obtain a Government backed Bounce Back Loan (BBL) totalling £25,000. On 6 January 2021 an additional £2,200 was received by The Disqualified Director by way of a further advance of the BBL. The BBL was not used in its entirety for the economic benefit of the business in breach of the terms of the BBL scheme with up to £11,500 being for personal use. More specifically after 7 May 2020:

 Between 11 May 2020 and 13 April 2021 £10,420 was paid to him directly, which was partly non business related in nature

 £1,146.98 was paid as part of transactions which were partly non-business related in nature between 11 May 2020 and 3 August 2020.

 £1,051.99 was withdrawn in cash between 11 May 2020 and 29 June 2020.

 £1,817.64 was paid as part of transactions which were partly non-business related in nature between 11 May 2020 and 25 June 2020.

 The Company’s BBL remained outstanding in the total sum of £27,200 on liquidation.

Case 212 – Director disqualification for breaches of the Coronavirus Business Interruption Loan Scheme

Director Disqualified for 3 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to breach the eligibility criteria of the Coronavirus Business Interruption Loan Scheme (CBILS) by applying for, and receiving, a CBILS of £235,035 and failed to use the loan amount (or part of it) to repay in full the outstanding balance of an existing Bounce Back Loan (BBL) of £50,000 previously obtained on 14 May 2020 as required by the Scheme. In that:

The CBILS lending criteria includes a requirement to offset any existing BBL in full, from the CBILS funds.

As part of the CBILS application process one of the qualifying questions asked, was will the CBILS loan you get from us be used to repay BBLS, CLBILS, or CCFF in full To which The Disqualified Director answered Yes on the application signed by him.

A BBL of £50,000 was received by The Liquidated Company on 14 May 2020.

A CBILS of £235,035 was received on 01 September 2020.

The BBL was not offset from CBILS funds, contrary to the CBILS lending criteria, and £47,601 remains outstanding.

Meanwhile between 01 September 2020 and the date of liquidation M The Disqualified Director paid himself a total of £42,430 in dividends.

At the date of The Liquidated Company Liquidation on 04 October 2021, a total of £421,004 was owed to creditors, of which at least £235,035 was owed in respect of the CBILS, £47,601 in respect of the BBL and £56,421 to trade creditors.

Case 213 – Director disqualification for multiple breaches of the BBL scheme

Director Disqualified for 9 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to breach the conditions of the Bounce Back Loan (BBL) Scheme by falsely applying for a BBL in the sum of £50,000 at a time when The Disqualified Director knew or ought to have known that The Liquidated Company was not eligible for a BBL of £50,000 and The Disqualified Director caused funds totalling £47,560 from the BBL to be transferred to his personal account with no economic benefit of The Liquidated Company in that:

On 13 May 2020 The Disqualified Director submitted an application for a BBL of £50,000 confirming that The Liquidated Company annual turnover was £220,000

An analysis of The Liquidated Company bank account shows receipts of £12,797 in the period 24 February 2020 to 11 May 2020

On 14 May 2020 £50,000 was paid into The Liquidated Company’s bank account.

An analysis of The Liquidated Company bank account shows £47,560 was transferred to a bank account in the name of The Disqualified Director between 18 May 2020 and 20 July 2020.

The Liquidated Company

The Disqualified Director caused The Liquidated Company to breach the conditions of the Bounce Back Loan (BBL) Scheme by falsely applying for a BBL of £50,000 at a time when The Disqualified Director knew or ought to have known that The Liquidated Company was not eligible for a BBL of £50,000 and The Disqualified Director caused The Liquidated Company to expend the sum of £45,961 with no economic benefit to The Liquidated Company in that:

On 26 August 2020 The Disqualified Director submitted an application for a BBL of £50,000 confirming that The Liquidated Company annual turnover was £250,000

The Liquidated Company accounts to 31 October 2019 showed an annual turnover of £90,246.

On 23 September 2020 £50,000 was paid into The Liquidated Company bank account

An analysis of The Liquidated Company bank account shows £24,575 was withdrawn in cash, £10,421 was transferred to an account in the name of The Disqualified Director and £10,965 was expended on clothes, food & electrical retailers, days trips and a holiday.

Case 214 – Director disqualification for obtaining a bounce back loan for a dissolved company

Director Disqualified for 8 years by a director signed undertaking.

On or around 18 June 2020, The Company Director caused The Dissolved Company Limited to fraudulently apply for a Bounce Back Loan (BBL) of £20,000 and to breach the terms of the Bounce Bank Loan (BBL) scheme, when he knew or ought to have known The Dissolved Company was only entitled to apply for funds of £11,355. He applied funds totalling £18,069 for his personal benefit and not for the economic benefit of The Dissolved Company and without the intention to complete timely repayments in the future resulting in loss to the bank of at least £20,000 and failed to give notice to the bank of the dissolution of The Dissolved Company as required by Section 1006 Companies Act 2006.

 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 turnover. The turnover figure required was that for the calendar year 2019. Businesses were required to use the loan only to provide economic benefit to the business, and not for personal purposes and confirm they have understood the costs associated with repayment of the loan and that they are able and intend to complete timely repayments in future

 Between 06 June 2019 and 29 February 2020, The Dissolved Company’s bank account shows an average monthly turnover of £3,785, giving an estimated annual turnover of £45,420

 The last income was received into the bank account on 19 March 2020

 On 28 May 2020, he applied to dissolve The Dissolved Company

 On 18 June 2020, The Dissolved Company received a BBL of £20,000, he having declared the turnover on the application to be £100,000

 Between 18 June 2020 and 10 July 2020 payments totalling £18,069 were made from The Dissolved Company’s bank account:

o Debit Card Payment of £9,704 to a Motor Finance Company

o Payments totalling £1,399 reference Family

o Payments totalling £6,966 to a third party

 On 27 June 2020 the application to dissolve The Dissolved Company was withdrawn

 On 10 July 2020 he made a subsequent application to dissolve The Dissolved Company

 As of 10 July 2020, the full amount of the BBL remained outstanding

 The Dissolved Company failed to given notice to the bank of its application for dissolution

 On 20 October 2020 The Dissolved Company was dissolved and the BBL of £20,000 remains outstanding.

Case 215 – Director disqualification for breaches of the terms of the BBL Scheme

Director Disqualified for 4 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) totalling £50,000 that he knew or ought to have known that The Liquidated Company was not eligible for. Of these funds at least £20,000 was transferred to his personal bank account and was therefore not used for the economic benefit of the company in that:

 He was a director of The Liquidated Company from incorporation on 4 December 2017.

 He applied for a BBL of £50,000 on behalf of MMS that was received into The Liquidated Company bank account on 6 July 2020. The loan terms allowed The Liquidated Company to apply for a loan up to 25% of the annual turnover of the company from £2,000 – £50,000.

 In the application form he declared that The Liquidated Company’ turnover for the calendar year of 2019 was over £200,000.

 Accounts record turnover of £45,748 in 2018 falling to £38,300 in 2019 significantly lower than declared on the BBL application.

 After 6 July 2020 when £50,000 was credited to the company bank account he transferred to himself £10,000 on 20 July 2020 and a further £10,000 on 7 August 2020. These payments breached the conditions of the BBL which stated that it should be used for the economic benefit of the business.

 At the date of liquidation on 25 May 2021 the BBL remained unpaid.

Case 216 – Director disqualification for misuse of BBL funds

Director Disqualified for 10 years by a director signed undertaking.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (the company) to apply for a Bounce Back Loan (BBL) of £13,000 and failed to ensure that the funds were used in their entirety for the economic benefit of the company, in that:

 On 7 May 2020 £13,000 was introduced into the company by way of a BBL which was granted with the intention of providing economic benefit to the company.

 On 11 May 2020 £10,000 was paid out of the company bank account to a pension provider for her personal benefit. A further £39,500 was then paid into her personal pension prior to liquidation on 7 June 2021.

 At liquidation £27,062 was owed to creditors of which £13,000 was in respect of the BBL.

Case 217 – Director disqualification for breaches of the BBL scheme terms and conditions

Director Disqualified for 6 years by Order of the Court.

The Disqualified Director caused the Liquidated Company to apply for a Bounce Back Loan (BBL) of £20,000 on 21 November 2020 using overstated turnover figures in the application form. Consequently, the Liquidated Company received £9,212 more monies than it was entitled to from the Bounce Back Loan scheme. Furthermore, The Disqualified Director failed to ensure that the Bounce Back Loan funds were used for the economic benefit of the Company, in that:

The company traded from March 2018 to November 2021.

On 21 November 2020, The Liquidated Company obtained a BBL of £20,000 which was at least £9,212 more than it was entitled to. A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of its turnover in 2019.

In the Bounce Back Loan application, The Liquidated Company’s turnover for 2019 was stated to be £80,000;

Financial Statements detail that The Liquidated Company achieved turnover of £39,930 and £43,152 in the years ended 31 March 2019 and 31 March 2020 respectively;

The Liquidated Company’s bank statements show total credits of £44,731.30 in the 2019 calendar year;

Between 21 January 2021 and 15 February 2021 bank statements show that the £20,000 from the BBL funds were transferred to The Disqualified Director and he has provided no evidence to show that these funds were used for the economic benefit of the Company;

On 07 December 2021, The Liquidated Company entered into Creditor’s Voluntary Liquidation with total liabilities of £23,900, of which £20,000 was the Bounce Back Loan.

Case 218 – Director disqualification for breaches of multiple bounce back loans

Director Disqualified for 5 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (the company) to apply for, and receive, a Bounce Back Loan (BBL) of £20,000 on 19 May 2020 and a top up BBL of £3,750 on 02 February 2021 following which he failed to ensure the entirety of the BBL were used for the economic benefit of the company, in that:

 On 19 May 2020 the company received a BBL of £20,000 followed by a top up loan of £3,750 on 02 February 2021. The total BBL funds received by the company were £23,750.

 Between 30 March 2020 and 26 October 2021, he was paid £40,040 from the company bank account.

 BBLs were granted for the economic benefit of the company and not for personal purposes. He has failed to evidence £13,987 of the BBL funds were used for the economic benefit of the company.

 On 27 October 2021 he placed the company into Creditors Voluntary Liquidator with a deficiency of £42,530 of which £19,030 is owed to HMRC; £500 is owed to a trade creditor and the bank, in respect of the BBL is owed £23,000.

Case 219 – Director disqualification for using BBL funds for personal expenditure

Director Disqualified for 12 years by Order of the Court.

On 07 May 2020, The Disqualified Director, on behalf of The Liquidated Company, applied for a Government backed Bounce Back Loan (BBL) in the total sum of £20,000. The BBL application was for an amount to which the Company was not eligible and the BBL funds were not used in their entirety for the economic benefit of the Company’s business. In that:-

Lending requirements/erroneous declaration

 The BBL Scheme allowed businesses to borrow from £2,000 up to 25% of a business’ turnover for the calendar year ended 31 December 2019 (with the maximum loan available being £50,000).

 In order to be eligible for a BBL of £20,000, the Company’s turnover was required to be at least £80,000 for the calendar year ended 31 December 2019.

 The Company was incorporated on 20 May 2019.

 On the BBL application form, The Disqualified Director declared that the Company’s annual turnover was £83,000. This is not supported by the Company’s bank statements which show total receipts of £27,173 from 28 June 2019 (account opening) until 31 December 2019, so the Company’s turnover was overstated and it was not eligible for a BBL in the sum of £20,000.

The company’s accounts to May 2020 show an annual turnover of £61,297, meaning it would have been eligible for a maximum BBL of £15,324.

Use of moneys obtained

 On 11 May 2020, the BBL of £20,000 was paid into the Company’s bank account.

 The balance on the Company’s bank account prior to receipt of the BBL funds was £7,534.18.

 On 13 May 2020 and 15 May 2020, payments totalling £15,800 (£3,000  £12,800) were made from the Company’s bank account to The Disqualified Director.

 The Company’s bank statements show that after the payments totalling £15,800 were made on 13 May 2020 and 15 May 2020, the Company made additional payments to The Disqualified Director totalling £19,089 in the 12 months following the BBL.

 The BBL remained outstanding on liquidation in the total sum of £20,000.

Case 220 – Director disqualification for breaches of the terms of the BBL Scheme

Director Disqualified for 5 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company Limited (The Liquidated Company) or (the Company) to apply for a Bounce Back Loan (BBL) of £40,000 on 07 October 2020 using overstated turnover figures in the application form. Consequently, The Liquidated Company received £37,926.50 more monies than it was entitled to from the BBL scheme. Furthermore, he failed to ensure that the BBL funds were used for the economic benefit of the Company, in that:

 The company was incorporated on 20 June 2019.

 On 13 October 2020, The Liquidated Company received a BBL of £40,000 which was £37,926.50 more than it was entitled to. A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of its turnover.

 In the BBL application dated 07 October 2020, The Liquidated Company’s annual turnover was stated to be £160,000.

 Financial Statements detail that property achieved turnover of £8,294 in the period 20 June 2019 to 30 June 2020, which was the Company’s first year of trade.

 The Liquidated Company’s bank statements show total credits of £7,813.86 in the same period.

 The Liquidated Company’s bank statements show a payment of £8,975 to an unknown third party and a withdrawal of £5,000 on 15 October 2020. He has provided no evidence to show that these funds were used for the economic benefit of the Company.

 The Liquidated Company’s bank statements also show that £24,681.63 was transferred to him between 17 November 2020 and 06 August 2021. He has provided no evidence to show that these funds were used for the economic benefit of the Company.

 On 03 November 2021, The Liquidated Company entered Creditor’s Voluntary Liquidation with total liabilities of £42,300, of which £40,000 was the BBL.

Case 221 – Director disqualification for using inaccurate information to obtain a BBL

Director Disqualified for 5 years by a director signed undertaking.

In May 2020 The Disqualified Director caused The Liquidated Company (LC) to apply for and obtain a government-backed Bounce Back Loan from NatWest (the BBL lender) of £50,000 (‘the loan monies’) by providing inaccurate information as to LC solvency in 2019 and did not use all the loan monies for the economic benefit of LC, contrary to the terms of the loan. These actions constituted a misuse of the Covid business support finance scheme. In that:

Application  criteria and miss-statements

 In submitting LC BBL application, she declared on its behalf that the company had not shown net liabilities in its 2019 accounts;

 According to LC financial statements for the year to 30 June 2019, the company had net current and total liabilities of £46,216 and £18,092 respectively.

Misuse of monies obtained contrary to terms of BBL

 LC current business account had an overdrawn balance of £1,980 immediately prior to receipt of the loan monies of £50,000 on 11 May 2020;

 The loan monies were not applied in full for the benefit of the Company, in that:

 On 14 May 2020 a transfer of £50,000 was made from the current business account to a business reserve account held by the company and, on 19 May 2020, from there to a second and new business reserve account which was opened with the £50,000 so transferred;

 From the second business reserve account a payment of £9,000 was made to a third party on 11 June 2020 in respect of a car purchased for her and/or for Co-Director and which did not become an asset of the company;

 From the second business reserve account a transfer back to the current business account was made on 17 July 2020 in the sum of £18,300 which on that same day was paid out to a car dealer in respect of a vehicle not purchased for LC. At the time of the transfer of this £18,300 to the current business account, the balance on the current business account was £351.90.

 The Statement of Affairs signed by her on 30 April 2021 shows the BBL lender as a creditor for the full value of the loan monies i.e. £50,000.

Case 222 – Director disqualification for receiving more funds from the BBL Scheme than were due

Director Disqualified for 4 years by an undertaking agreed by the director.

On 17 May 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company to overstate its turnover on its application form for a Bounce Back Loan (BBL) resulting in the company receiving more funds from the loan than it was entitled to, in that:

 The BBL scheme rules allowed businesses to receive a loan of up to 25% of their annual turnover, which businesses would self-certify when completing the BBL application.

 The company commenced trading on 13 May 2019 so the turnover declared on the BBL application form was the projected turnover for 2019.

 The company’s accounts for the year ending 31 May 2020 show a turnover of £51,597 which meant that the company was entitled to a BBL of a maximum of £12,890.

 On 17 May 2020 the turnover figure provided by him on the BBL application form was stated as being £193,000 and consequently on 19 May 2020 the company received £48,000 which was £35,110 in excess of what it should have been entitled to based on the accounts.

 Evidence to support the projected turnover calculation of £193,000 has not been provided by him.

Additionally, he caused the funds from the loan to be used for his personal benefit and not to provide economic benefit to MB The Liquidated Company, in that:

 MB The Liquidated Company received funds totalling £48,000 from a government backed BBL on 19 May 2020.

 Between 19 May 2020 and 31 March 2021 the company received income totalling £36,151.50, to include Job Retention Scheme payments of £6,544.

 Withdrawals totalling £33,150 were made from the company bank account between 23 June 2020 and 16 March 21. There is no evidence to show this money represents genuine company expenditure or who this money was paid to.

 Payments totalling £41,860 were made between 02 June 2020 and 31 March 2021 to him from the business bank account. No evidence that these payments were for the economic benefit of the company has been provided by him.

 At liquidation the total creditors were £48,868.93, of which £48,000 was for the BBL.

Case 223 – Director disqualification for not meeting the eligibility for a received BBL

Director Disqualified for 5 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to make an application for a Government-backed Bounce Back Loan (BBL) of £37,000 when she knew or ought to have known that the eligibility criteria had not been met, in that:

She caused The Liquidated Company to overstate its turnover on its application for the BBL. a consequence the company received more monies than it was entitled to from the BBL scheme on 25 August 2020.

The BBL scheme rules allowed businesses to receive a loan of up to 25% of their annual turnover, which businesses would self-certify when completing the BBL application.

The company’s accounts for the period up to 31 August 2019 state the turnover was £37,919.

The company’s accounts for the period up to 31 August 2020, give no turnover details.

An analysis of the company’s bank statements show income into the company’s bank account for the calendar year 2019 £42,141.52 and for the period 1 January 2020 to the date of receipt of the BBL on 25 August 2020, £51,222.87. Total income paid into the account from 1 January 2019 to the date of liquidation on 31 August 2021 (two years and eight months) was £168,589.91.

However, the BBL application form gives the annual turnover £150,000 for 2019 and consequently the company received £37,000 on 25 August 2020, which was £26,965 more that it was entitled to on the basis on the 2019 turnover based on bank deposits would have allowed the company to apply for a BBL of £10,535.

In the application form the director confirmed that the business was adversely impacted by Covid-19. The bank statement analysis shows in fact that, in the three months prior to making the application for the BBL, the company’s income was increasing and payments to the director/associated accounts was also significant compared to previous months.

By signing the application form the director agreed to use the credit granted only to provide economic benefit to the business, providing working capital or investing in the business and that it would only be used for business purposes and not personal purposes.

Following receipt of the £37,000 BBL on 25 August 2020, between 27 and 28 August 2020, payments totalling £40,000 were made to the director/connected parties referred to below from the company’s bank account

£10,000 to the director/a connected party with reference To clear credit ca

£10,000 to the director/a connected party with reference Extra payment

£10,000 to the director/a connected party with reference Pay off credit

£10,000 to the director with reference Salary

No evidence has been provided to show that the payments referred to above were for the economic benefit to the business. The bank statements show no evidence of the company receiving any credit or payments from the above-named parties.

At the date of liquidation, the only creditor is in respect of the BBL, which remains unpaid.

Case 223 – Director disqualification for breaches of the terms of a Bounce Back Loan

Director Disqualified for 9 years by a director signed undertaking.

On 02 June 2020 The Disqualified Director caused The Liquidated Company to apply for a government backed Bounce Back Loan (BBL) of £27,500 and following receipt of the BBL on 11 June 2020, he failed to use it in its entirety for the economic benefit of the company, contrary to the terms of the BBL. In that:

Accounts in the year to 31 March 2020 show losses of £35,621 and net liabilities of £48,852. The Disqualified Director stated that the company had struggled financially since it had started trading in March 2018

On 02 June 2020, The Disqualified Director applied for a BBL of £27,500. On 11 June 2020 the sum of £27,500, being the BBL, was paid into the Company bank account. Within the BBL application The Disqualified Director declared that the BBL would be used to provide economic benefit to the business.

The Disqualified Director states that £17,600 of the BBL was used to refurbish the bathrooms and for a feature wall in the restaurant. Invoices addressed to the Company dated 06 July 2020 and 13 July 2020 for £7,760 and £10,000 respectively show when the work was carried out.

The Disqualified Director approached the liquidator on 15 July 2020, two days after the final invoice was issued, and instructed them to put the company into liquidation. The second invoice is marked paid on 13 July 2020, however the bank statements show £10,000 withdrawn in cash on 15 July 2020.

The licence to assign the lease dated 16 April 2018 shows that the lease was assigned to The Disqualified Director personally, meaning the company was under no obligation to fund the works and that The Disqualified Director could continue to benefit from the refurbishments carried out using the BBL once the company stopped trading.

The Disqualified Director asserts that the Company ceased to trade on 23 August 2020.

At liquidation on 29 October 2020, the Company owed its creditors £81,927.88 including the £27,500 of the BBL which remains unpaid.

Case 224 – Director disqualification for breaches of the BBL scheme requirements

Director Disqualified for 9 years by a director signed undertaking.

The Disqualified Director provided inaccurate information to The Liquidated Company’s bankers about the company’s turnover for the 2019 calendar year when applying for the Government Bounce Back loan scheme to obtain the maximum loan of £50,000 when it was eligible for approximately £5,400.

 The BBL criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover.

 On 17 July 2020, he on behalf of the company applied for and obtained a £50,000 BBL from its banker. He informed the bankers that the company’s turnover in 2019 was £230,000. The company’s earnings for 2019 provided to the company’s accountants by him was £21,601, which would entitle the company to a BBL totalling £5,400. The £50,000 BBL was received by the company on 20 July 2020 into its bank account.

 His signed Statement of Affairs shows that as at 27 July 2021, The Liquidated Company had an estimated deficiency to creditors of £229,491, including the sum of £50,000 owing to the bankers in respect of the BBL.

Case 225 – Director disqualification for making false statements on a BBL Application

Director Disqualified for 9 years by a director signed undertaking.

In April 2021 The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to obtain a £50,000 government backed Bounce Back Loan (BBL) which was £34,489 more than it was entitled to by providing information to the lender which he knew or ought to have known was inaccurate.

In that;

In the BBL application dated the 31 March 2021 which was signed electronically by The Disqualified Director he stated that the annual turnover of the company was £200,000.

A £50,000 BBL was paid into the company bank account on 01 April 2021.

Company accounts made up to the 31 March 2020 show that the annual turnover of LC was £62,045. The BBL scheme allowed businesses to borrow up to 25% of their annual turnover. Therefore, the maximum amount that LC was entitled to borrow was £15,511.

On 10 November 2021 The Disqualified Director sought insolvency advice and on the same day instructed the liquidator to place the company in liquidation.

At liquidation on 22 December 2021, the £50,000 BBL remained outstanding.

Case 226 – Director disqualification for overestimating turnover on a Bounce Back Application

Director Disqualified for 10 years by an undertaking agreed by the director.

On 26 May 2020 The Disqualified Director caused The Liquidated Company to obtain a Bounce Back Loan BBL of £50,000 using an overstated turnover figure in the loan application. Consequently, The Liquidated Company received at least £40,111 more than it was entitled to from the BBL scheme. In that;

 A business could apply for a loan between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019.

 On 26 May 2020 The Liquidated Company obtained a BBL of £50,000 despite accounts for the company to 31 March 2019 showing a turnover of £32,130 and for the year to 31 March 2020 of £42,033.

 On 22 November 2021 The Liquidated Company entered into creditors’ voluntary liquidation with liabilities of £56,385 including £50,000 which is owed in respect of the BBL.

Case 227 – Director disqualification for fraudulent application for a BBL

Director Disqualified for 10 years by a signed undertaking of the director.

On 21 May 2020, The Company Director caused The Dissolved Company to fraudulently apply for a Bounce Back Loan (BBL) of £50,000 and used at least £38,000 for his personal benefit, when he knew or ought to have known that The Dissolved Company was not be eligible for the loan under the terms of the scheme, in that:

The terms of the BBL state that the business must be engaged in trading or commercial activity in the UK at the date of the application, was carrying on business on 1 March 2020 and has been adversely affected by coronavirus (COVID-19).

The Dissolved Company ceased to trade on 31 January 2020.

The Company Director submitted an application to strike The Dissolved Company off of the register of companies, dated 27 February 2020.

On 21 May 2020, The Company Director caused The Dissolved Company to apply for a BBL of £50,000, which was credited into The Dissolved Companys business bank account on 26 May 2020.

Between 27 May to 01 June 2020, £38,000 was paid out of The Dissolved Company’s business bank account via 4 cheques made out to The Company Director.

On 25 September 2020, The Company Director signed The Dissolved Company’s statement of affairs which failed to disclose the existence of the £50,000 BBL to the liquidator.

At liquidation, the BBL of £50,000 remains outstanding.

Case 228 – Director disqualification for breaches of the terms of application for a BBL

Director Disqualified for 10 years by a director signed undertaking.

In May 2020, The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to apply for a Government backed Bounce Back Loan (BBL) totalling £50,000 for which it was not eligible by including false information relating to turnover within the BBL application. Thereafter the BBL was paid into the LC Bank Account on 13 May 2020 and was not used in its entirety for the economic benefit of the business. In that:

Lending requirements/declarations

Turnover

The BBL Scheme allowed businesses to borrow between £2,000 up to 25% of a business’ turnover for the calendar year ended 31 December 2019 with the maximum loan available being £50,000.

The BBL application declares that stated annual turnover for the calendar year ended 31 December 2019 was £230,000.

LC accounts for periods ended 29 June 2019 and 28 June 2020, both of which were approved by The Disqualified Director, record turnover in the sum of £61,420 and £47,170 respectively. Based on these turnover figures the company would have been entitled to claim a BBL of approximately £15,500.

The Disqualified Director claims that the turnover figure declared in the BBL application was based on projected sales.

The BBL application states that only in circumstances where a business was established after 1 January 2019 could estimated annual turnover be used.

LC was incorporated on 16 June 2016 and traded from this date.

Use of moneys obtained

 On 13 May 2020 the sum of £50,000 was paid into LC Bank Account. Prior to receipt of the BBL, the balance on the Account was £2,632.53.

 On 26 May 2020 the total sum of £50,000 was paid to The Disqualified Director from LC bank account by way of cheque payment number 000012.

 The BBL application required The Disqualified Director to undertake that the BBL fund would be used only to provide economic benefit to LC, would be used wholly for business purposes and not personal purposes.

 The Disqualified Director has provided no evidence that the BBL funds in the sum of £50,000 transferred to him personally were used for the economic benefit of the business.

 The loan provider has filed a proof of debt in the liquidation confirming the amount outstanding in respect of the BBL totalled £49,230.59 (exclusive of legal and other costs), together with continuing contractual interest and costs.

Case 229 – Director disqualification for misuse of BBL Funds

Director Disqualified for 10 years by a director signed undertaking.

On 16 May 2020, The Disqualified Director provided false information in an application for a bounce back loan (BBL) of £50,000 that he made on behalf of The Liquidated Company by overstating The Liquidated Company’s annual turnover, with the consequence that the company obtained a BBL that was greater than it was entitled to. Furthermore, failed to ensure that the entirety of the BBL was used for the economic benefit of The Liquidated Company, in that:

Under the BBL scheme, a business could apply for a loan of up to 25% of its turnover in the calendar year 2019, from a minimum of £2,000, up to a maximum of £50,000

The Liquidated Company’s submitted accounts for the year ended 31 December 2018 shows an annual turnover totalling £68,685 and for the year ended 31 December 2019 shows an annual turnover of £78,690

An analysis of The Liquidated Company’s bank statements shows that the total income for the calendar year of 2019 was £71,102.46

On 16 May 2020, applied for a BBL of £50,000 on behalf of The Liquidated Company. On the BBL application form, declared that The Liquidated Company’s turnover was £350,000

On 19 May 2020. The Liquidated Company received BBL funds of £50,000; approximately £30,000 more than it was entitled to based on its turnover as per the submitted accounts

On 17 July 2020, two payments were made to a third party for the total sum of £25,000. These transactions do not appear to have been for the economic benefit of The Liquidated Company and has not provided any explanation as to what these payments related to, nor has he provided records to explain the purpose of the payments.

Case 230 – Director disqualification for breaching the terms of the BBL Scheme

Director Disqualified for 6 years by an undertaking agreed by the director.

On 14 July 2020 The Company Director, in breach of the terms of the Bounce Back Loan ( BBL) scheme, caused The Dissolved Company to fraudulently obtain a Bounce Back Loan (BBL) of £40,000 having previously obtained a BBL of £10,000 from a different lender in May 2020 . This breached the conditions of the BBL scheme as only one BBL was permitted at that time. Further it was a requirement of the BBL scheme that a loan was used for the economic benefit of a company, The Company Director has failed to provide evidence that BBL funds of £34,282 were used for the economic benefit of The Dissolved Company. In that

1. In May 2020, The Company Director submitted a BBL application to a lender (the first lender) on behalf of The Dissolved Company requesting the sum of £10,000 and the BBL proceeds of £10,000 were paid into The Dissolved Company’s bank account on 08 May 2020.
2. On 14 July 2020, The Company Director made a second BBL application on behalf of The Dissolved Company in which he requested additional BBL funds of £40,000 from a different lender (the second lender).
3. The application form submitted to the second lender and signed by The Company Director included a declaration confirming that this was the only BBL application made for this business.
4. On 14 July 2020, the second lender paid £34,654 into The Dissolved Company’s bank account, having used £5,346 of the BBL funds from the second lender to clear The Dissolved Company’s credit card debt with them.
5. On 20 July 2020 The Company Director transferred £15,000 to himself from The Dissolved Company’s bank account and on 27 July 2020 he transferred a further £19,282 to himself. It was a requirement of the BBL scheme that the BBL funds be used for the economic benefit of The Dissolved Company. Although The Company Director has stated that the BBL funds were used for business expenses, he has failed to evidence that this was the case.
6. On 27 May 2021 The Dissolved Company went into liquidation.
7. The first BBL lender has confirmed an outstanding balance of £9,000 at the date of liquidation and the second lender has confirmed an outstanding balance of £40,000 at that point.

Case 231 – Director disqualification for overstating turnover for a BBL application

Director Disqualified for 10 years by a director signed undertaking.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to obtain a Bounce Back Loan (BBL) of £45,000 and £2,500 on 5 May 2020 and 17 November 2020, using an overstated turnover figure in the application form. Consequently, The Liquidated Company received more monies that it was entitled to receive from the BBL scheme, in that:

 A business could apply for a BBL of between £2,000 and £50,000, subject to a maximum of up to 25% of turnover in the calendar year 2019.

 On 5 May 2020 The Liquidated Company obtained a BBL of £45,000 and on 17 November 2020 obtained a BBL top up of £2,500. In the application The Liquidated Company Work’s turnover was stated as £190,000.

 Accounts for period from 1 July 2018 to 30 June 2019 show a turnover of £4,737.

 VAT returns filed for period from 1 January 2019 to 30 June 2019 show a total value of sales of £4,112.

 VAT returns filed for period 1 July 2019 to 31 December 2019 show a total value of sales of £11,639.

 On 30 March 2021 The Liquidated Company entered liquidation with total liabilities of £74,588 of which £47,500 is in respect of the BBL.

Case 232 – Director disqualification for obtaining BBLs the company was not eligible for

Director Disqualified for 9 years by Order of the Court.

1. The Disqualified Director caused or allowed the Liquidated Company to overstate its turnover in its application for a Bounce Back Loan (BBL) resulting in The Liquidated Company receiving a BBL of £50,000 on the 05 June 2020 which it was not eligible for. In that:

 A business could apply for a BBL loan of between £2,000 to £50,000 up to a maximum of 25% of their turnover for calendar year 2019, or where it was incorporated after January 2019, estimated turnover could be used.

 On 03 June 2020, he signed a Bounce Back Loan application form stating The Liquidated Company’s estimated turnover to be £200,000. He has failed to provide any evidence as to how he estimated The Liquidated Company’s turnover.

 The Liquidated Company’s bank statements show income received in to the bank account, between 13 August 2020 and 06 December 2021, totalled £5,761.20. Based on this, The Liquidated Company would not have been eligible for the maximum £50,000 BBL funds

 At liquidation, the £50,000 Bounce Back Loan funds remains unpaid.

2. The Disqualified Director caused or allowed The Liquidated Company to overstate its turnover in its application for a Bounce Back Loan (BBL) resulting in the insolvent company receiving a Bounce Back Loan of £50,000 on the 01 June 2020 which it was not eligible for. In that:

 A business could apply for a Bounce Back Loan of between £2,000 to £50,000 up to a maximum of 25% of their turnover for calendar year 2019, or where it was incorporated after January 2019, estimated turnover could be used.

 On 28 May 2020, caused the insolvent company to apply for a BBL loan by overstating the insolvent companys turnover as £200,000, resulting in the insolvent company receiving the maximum Bounce Back Loan of £50,000, which is more than the insolvent company was entitled to.

 the insolvent companys bank statements for April 2019 to December 2019 show turnover was £25,122. He has failed to provide any evidence to show how turnover was calculated.

 At liquidation, the £50,000 BBL remains unpaid.

Case 233 – Director disqualification for multiple breaches of the terms of the Bounce Back Loan Scheme

Director Disqualified for 9 years by Order of the Court / Court Order / Order at trial.

1. The Disqualified Director used or allowed The Liquidated Company to overstate its turnover in its application for a Bounce Back Loan (BBL) resulting in The Liquidated Company receiving a BBL / Bounce Back Loan of £50,000 on the 05 June 2020 which it was not eligible for. In addition, The Disqualified Director caused or allowed The Liquidated Company to withdraw £48,500 in cash between 13 August 2020 and 27 August 2020 and has failed to show that the withdrawals were for the economic benefit of the company. In that:

A business could apply for a BBL Bounce Back Loan of between £2,000 to £50,000 up to a maximum of 25% of their turnover for calendar year 2019, or where it was incorporated after January 2019, estimated turnover could be used.

On 03 June 2020, a BBL was applied for on behalf of The Liquidated Company and its turnover was declared on the Bounce Back Loan application form to be £200,000. The Disqualified Director has failed to provide any evidence as to how he estimated The Liquidated Company’s turnover.

The Liquidated Company’s bank statements show income received in to the bank account, between 13 August 2020 and 06 December 2021, totalled £5,761.20. Based on this, The Liquidated Company would not have been eligible for the maximum £50,000 BBL funds

Between 13 August 2020 and 27 August 2020, £48,500 of Bounce Back Loan funds were withdrawn from The Liquidated Company’s bank account. The Disqualified Director has failed to evidence that these funds were used for the economic benefit of the company.

At liquidation, the £50,000 BBL funds remains unpaid.

The Liquidated Company received a £50,000 Bounce Back Loan (BBL) on the 01 June 2020. The Disqualified Director (The Disqualified Director) caused or allowed the liquidated company to withdraw £45,000 in cash on 03 July 2020 and failed to show whether it was for the economic benefit of the company. In that:

On 01 June 2020, the liquidated company received £50,000 of BBL funds in to its bank account

On 03 July 2020, £45,000 in cash was withdrawn from the liquidated company’s bank account.

The Disqualified Director has failed to evidence that the £45,000 was used for the economic benefit of the liquidated company contrary to the Government BBL scheme

At the date of liquidation, the liquidated company owed creditors £58,351, of which £50,000 was owed in respect of the BBL

The Liquidated Company received a £50,000 Bounce Back Loan (BBL) on the 01 June 2020. The Disqualified Director caused or allowed to withdraw £40,000 in cash on 24 June 2020 and failed to show whether it was for the economic benefit of the company. In that:

On 01 June 2020, the liquidated company received £50,000 of BBL / Bounce Back Loan funds

On 24 June 2020, £40,000 was withdrawn in cash from the liquidated company s bank account

The Disqualified Director has failed to evidence the BBL funds were used for the economic benefit of the liquidated company, contrary to the Government Bounce Back Loan scheme

At liquidation, the £50,000 BBL remains unpaid

Case 234 – Director disqualification for multiple breaches of the BBL Scheme terms

Director Disqualified for 10 years by a signed undertaking of the director.

On 02 August 2020, The Disqualified Director (The Disqualified Director), on behalf of The Liquidated Company (the Company), applied for and obtained a Government backed Bounce Back Loan (BBL) in the sum of £50,000 for which the Company was not eligible by including false and or inaccurate information relating to turnover within the BBL application. Thereafter the BBL was paid into the Company’s bank account on 03 August 2020 and was not used in its entirety for the economic benefit of the business or in the spirit of the BBL scheme. More specifically:

Lending requirements/declarations

The BBL Scheme allowed businesses to borrow between £2,000 up to 25% of a business’ turnover for the calendar year ended 31 December 2019 with the maximum loan available being £50,000.

The BBL application confirms that the level of annual turnover declared was £200,000 however the Company’s accounts for the years ended 31 March 2018, 31 March 2019 and 31 March 2020 record turnover figures of £24,769, £31,497 and £30,743 respectively.

Analysis of the Company’s bank statements records income/turnover of £4,293.92 during calendar year 2019.

The Company’s accounts and accounting records confirm that the level of turnover declared in the BBL application was significantly overstated.

Use of moneys obtained

On 28 April 2020 the sum of £10,000 was paid into the Company’s bank account being a Covid Support Grant received from Birmingham City Council (the Council). Prior to receipt of the Covid Support Grant the account balance was £27.87.

On 03 August 2022 the BBL funds of £50,000 were paid to the Company’s bank account, prior to receipt of the BBL, the bank balance was £1,899.18.

Further Covid support payments were received from the Council in the sum of £19,737 between 19 January 2021 and 28 April 2021.

Payments in the total sum of £30,092 were paid to a connected person between 19 February 2021 and 28 May 2021. This included a lump sum payment in the sum of £15,000 made on 13 May 2021 with payment reference Salary/redundancy.

The total sum of £45,000 was transferred to The Disqualified Director from the Company’s bank account on 17 May 2021 (£25,000) and 18 May 2021 (£20,000) with payment references The Disqualified Director Expenses.

The Company’s BBL remained outstanding in the total sum of £50,000 on liquidation.

Case 235 – Director disqualification for breaches of the Bounce Back Loan Scheme

Director Disqualified for 9 years by a signed undertaking of the director / an undertaking agreed by the director / a director signed undertaking.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to breach the conditions of the Bounce Back Loan Scheme by applying for two Bounce Back Loans totalling £72,500 that he knew or ought to have known The Liquidated Company was not eligible for:

Bounce Back Loan Scheme conditions state that a business should not apply for a loan if it is already in the process of applying for, or has already received, a Bounce Back Loan Scheme facility, the exception being a top-up if they originally borrowed less than the maximum amount (£50,000) available. The funds are to be used for the economic benefit of the business.

On 2 June 2020 the company applied for and received a Bounce Back Loan of £37,500 from Bank A.

On 16 June 2020 the company applied for and received a Bounce Back Loan of £35,000 from Bank B. Total of Bounce Back Loans received £72,500.

The scheme allowed businesses to borrow between £2,000 up to 25% of their turnover, with a maximum loan amount of £50,000. Turnover for the company for the calendar year 2019 was £1,798 and so it appears that the company was not eligible to apply for and receive either bounce back loan.

Bounce back loan eligibility includes that the loan be used only to provide economic benefit for the company. No evidence has yet been provided to the liquidator to confirm this was the case.

Case 236 – Director disqualification for misuse of BBL Funds

Director Disqualified for 5 years by a signed undertaking of the director.

On 28 September 2020, The Disqualified Director caused The Liquidated Company  to obtain a Bounce Back Loan (BBL) totalling £24,000. The BBL funds were not used for the economic benefit of The Liquidated Company, contrary to the terms of the BBL scheme. In that:

The Liquidated Company received no income from trading in to it’s bank account after 26 March 2020

On 28 September 2020, The Liquidated Company received a BBL of £24,000.

Between 08 October 2020 and 21 January 2022, The Disqualified Director caused The Liquidated Company to transfer funds totalling £23,400 to herself. No evidence has been provided by The Disqualified Director to say these transfers were for the economic benefit of The Liquidated Company.

At the date of liquidation, The Disqualified Director had a DLA of £54,476

At the date of liquidation, The Liquidated Company had creditors of £55,900 including the outstanding BBL.

Case 236 – Director disqualification for personal use of BBL payments

Director Disqualified for 7 years by a director signed undertaking.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (the company) to apply for, and receive, a Bounce Back Loan (BBL) of £30,000 to which the company was not entitled, following which, she personally gained at least £26,861 in payments. In that:

1. A business could apply for a BBL of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019.
2. The company’s annual accounts to 31 December 2019 disclosed the company achieved turnover of £4,892. Therefore, the company was not entitled to a BBL as its turnover was below minimum threshold of £8,000.
3. On, or around 20 May 2020 she, on behalf of the company, completed and submitted a BBL application within which she declared the company’s 2019 turnover was £130,000. She also declared that the loan value was equal to, or less, than 25% of the company’s annual turnover for 2019 and the company had been adversely impacted by Covid-19.
4. An analysis of the company’s bank statements between 03 December 2019 and 13 January 2022 the company received receipts totalling £32,223 (including £30,000 BBL) from which payments, totalling the same value, were made.
5. The analysis revealed that from the BBL of £30,000 she, between 23 May 2020 and 10 November 2021, personally received payments totalling £26,861 to which she was not entitled.
6. On 02 February 2022 she placed the company into Creditors Voluntary Liquidation with a deficiency of £30,000 which is owed the bank, the company’s only creditor, in respect of the BBL.

Case 237 – Director disqualification for breaches of the BBL scheme regulations

Director Disqualified for 9 years by an undertaking agreed by the director.

On 30 October 2020 The Disqualified Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) that he ought to have known The Liquidated Company was not entitled under the terms and conditions of the BBL scheme in that:

For companies incorporated before 01 January 2019, a company was entitled to borrow between £2,000 and £50,000 up to a maximum of 25% of the company’s turnover for the 2019 calendar year. If a company was established after 01 January 2019 then the 25% limit was applied to a company’s estimated annual turnover from the date that the company started business.

The Liquidated Company was incorporated 19 December 2016, and The Disqualified Director has stated trading commenced on 07 October 2018.

The only known bank account owned and operated by The Liquidated Company  was opened on 30 October 2020. The Disqualified Director has stated that The Liquidated Company had no turnover prior obtaining the BBL on 30 October 2020.

The Disqualified Director, in completing the BBL application on behalf of The Liquidated Company, provided a self-certified projected turnover of £210,000, causing the lender to advance to The Liquidated Company a BBL of £50,000 on 30 October 2020 to which it was not entitled. This turnover projection by The Disqualified Director was based on prospective successful publication and sale of various book products during the 12 month period following the application for the BBL.

The Disqualified Director has provided no evidence to support the projected turnover figure used to obtain the BBL.

IRYL entered liquidation on 07 December 2021 with liabilities totalling £50,485, of which £50,000 is owed to the BBL provider.

Case 238 – Director disqualification for fraudulently obtaining two bounce back loans

Director Disqualified for 10 years by a director signed undertaking.

On 17 May 2020 The Disqualified Director caused The Liquidated Company to apply for a Government-backed Bounce Back Loans (‘BBL’) of £18,000 that it was not eligible for, having obtained a previous BBL for £12,000 on 11 May 2020 from a different lender, in that:

 The Liquidated Company was incorporated on 7 January 2014

 On 6 May 2020 The Disqualified Director applied for a BBL of £12,000 from ‘Bank A’ on behalf of The Liquidated Company which was received into the company account on 11 May 2020.

 On 13 May 2020 The Disqualified Director applied for a second BBL for £18,000 from ‘Bank B’ which was received into the company account on 17 May 2020.

 The BBL terms and conditions in respect of ‘Bank B’ required the applicant to self-declare that they had not made any other application for a Bounce Back Loan for the business. The Disqualified Director falsely declared that The Liquidated Company had not previously applied for and obtained a BBL with another lender,

 Company accounts approved and signed by The Disqualified Director on 15 April 2019 for year ending 31 January 2019 record an annual turnover of £48,727.

 Company accounts approved and signed by The Disqualified Director on 30 October 2020 for year ending 31 January 2020 record an annual turnover of £33,702.

 The Liquidated Company’s bank statements record receipts of £41,323 for the calendar year 2019.

 On the first BBL application The Disqualified Director stated The Liquidated Company line’s turnover was £50,000 and on the second, made a few days later, that it was £123,000.

 Based on income into its bank account during 2019, the maximum loan that The Liquidated Companyline was eligible to receive was £10,330.

Case 239 – Director disqualification for breaches of the terms of the BBL Scheme

Director Disqualified for 13 years by a signed undertaking of the director.

On 26 June 2020, The Disqualified Director (The Disqualified Director) caused The Liquidated Company Limited (LC) to obtain a bounce back loan (BBL) of £50,000 to which it was not entitled as it was not trading on 01 March 2020 in breach of the terms of the BBL scheme. In addition, the funds received from the BBL were not then used for the legitimate economic benefit of MUB but were paid to him personally in breach of the terms of the BBL scheme. In that:

 He was the sole director of LC from 18 December 2019 onwards;

 It was a condition of the BBL scheme that the applicant had to be trading in the United Kingdom on 01 March 2020;

 LC commenced to trade on 22 March 2020;

 On 26 June 2020, he caused LC to obtain a BBL of £50,000;

 On 29 June 2020, LC paid £50,000 to him;

 The BBL remained outstanding at liquidation on 28 July 2021.

Case 240 – Director disqualification for obtaining a BBL that the firm did not qualify for

Director Disqualified for 10 years by an undertaking agreed by the director.

The Company Director (The Company Director) caused The Dissolved Company (DC) to apply for a Government backed Corona Virus Bounce Back Loans (BBL’s) of £50,000 which DC did not have sufficient turnover to qualify for, in particular:

 He was appointed sole Director on 28th June 2020, the previous Director resigning on the same date.

 Professionally prepared financial statements for DC for the year ending 31st March 2020 show turnover of £66,222, Comparative figures for year ended 31st March 2019 show turnover of £74,442.

 On the 2nd September 2020 an application for a BBL of £50,000 was made by DC. The form has been electronically signed by him.

 In the Loan Details section of the application, the form states You can apply for a loan which is up to 25% of your turnover in calendar year 2019, from a minimum of £2,000, up to a maximum of £50,000. If your business was established after 1st January 2019, you should apply the 25% limit to your estimated annual turnover from the date you started your business.

 The annual turnover is stated as £200,000 and the amount to be borrowed is £50,000.

 The checkbox which asks for confirmation that this is equal to or less than 25% of annual turnover for 2019 or estimated annual turnover has a cross marked in it.

 Section 17 of the Declaration states: I/ we recognise that by providing information that is inaccurate or incomplete in any material particular, I /we may be regarded as attempting to gain, or gaining, a financial advantage dishonesty and as such will be liable to prosecution for fraud under the Fraud Act 2006.

 Section 18 state: I/we confirm that the information provided in this application is complete and accurate.

 As a result of this application £50,000 was credited to DC Bank Account on 3rd September 2020.

 Based on the Turnover of £74,442 shown in the Accounts to 31st March 2019, the maximum DC qualified to apply for under the BBL scheme would be £18,610 and based on the turnover shown in the accounts to 31st March 2020 of £66,222, the maximum BBL which could apply for is £16,555.

 As a result of the inaccurate turnover figure shown in the application form, DC has obtained Government backed loan proceeds of at least £31,390 more than it qualified for.

 DC entered Liquidation on the 11th January 2022 with debts totalling £92,981, which includes £50,000 owed to Barclays in respect of the BBL.

Case 241 – Director disqualification for providing false information on a BBL application

Director Disqualified for 5 years by a director signed undertaking.

In August 2020 The Company Director caused The Insolvent Company to apply for a Government-backed Bounce Back Loan (‘BBL’) totalling £50,000 for which it was not eligible by including false information relating to turnover. In that:

 On 17 August 2020 The Insolvent Company applied for a BBL of £50,000, which was received into the company account on 20 August 2020.

 Company accounts approved and signed by The Company Director on 24 July 2020 for year ending 31 May 2020 record an annual turnover of £43,787.

 The Insolvent Company’s bank statements record income of £25,609.20 between 4 April 2019 and 31 December 2019.

 On the BBL application The Company Director stated The Insolvent Company’s turnover was £200,000.

 Based on income into its bank account during 2019 and the turnover stated in the May 2020 accounts, the maximum loan that The Insolvent Company was eligible to receive was approximately £11,000.

The Company Director failed to ensure that The Insolvent Company maintained or preserved adequate accounting records, or in the alternative failed to deliver up such records to the liquidator. In the absence of accounting records, it has not been possible to establish what happened to £65,390 drawn from the company’s bank account during the period from 20 August 2020 to 21 January 2021 and specifically whether the £50,000 BBL obtained by The Insolvent Company on 20 August 2020 was used for the economic benefit of its business.

Case 242 – Director disqualification for breaches of the application terms for a BBL

Director Disqualified for 3 years by a signed undertaking of the director.

The Banned Director caused or allowed The Liquidated Company to apply for a Bounce Back Loan (BBL) of £50,000 on 20 August 2020 using overstated turnover figures in the application form. Consequently, The Liquidated Company received more monies than it was entitled to from the BBL scheme, in that:

On 05 August 2020 The Liquidated Company obtained a BBL of £50,000 which it was not entitled to. A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019. In an application The Banned Director knew about she caused or allowed the other company directors to state The Liquidated Company had a turnover of £250,000.

Corporation Tax return for the accounting period 01.10.2017 to 30.09.2018 shows a trading turnover of £28,791 and a corporation Tax liability of £136.80.

Application made on 09.08.2019 to HMRC to register for VAT with registration date as 01.08.2019 and estimated turnover of £90,000.

VAT return filed for period 09/19 shows turnover of £7,794 and VAT amount due for that period as £235.99

Bank statements provided are for June 2020 to liquidation only and no accounting records or annual accounts have been delivered up for the period required to evidence eligibility to apply for a BBL of £50,000.

The Banned Director resigned as company director on 31 August 2020.

On 26 February 2021 The Liquidated Company entered liquidation with total liabilities of £74,347, of which £50,000 was the BBL.

Case 243 – Director disqualification for using false information to obtain a BBL

Director Disqualified for 5 years by Order of the Court.

The Disqualified Director caused The Liquidated Company to use top up Bounce back Loan (BBL) funds of £5,000 for his personal benefit and not for the economic benefit of The Liquidated Company., having caused The Liquidated Company to obtain the top up loan on 13 November 2020 when the company was insolvent, had ceased to trade and there was no prospect of repayment of the loan. In that:

 On 12 May 2020 The Liquidated Company obtained a Bounce Back Loan (BBL) of £45,000.

 The terms of the BBL stated that the monies should only be used for the economic benefit of the business and not for personal purposes.

 LC ceased trading on 01 October 2020 when the franchises held by The Liquidated Company were removed by the franchisor.

 On 13 November 2020, he caused The Liquidated Company to obtain a £5,000 top-up to the BBL.

 This money was transferred to his personal account on 23 November 2020.

At liquidation, The Liquidated Company had liabilities of £91,734 of which £59,697 was owed to the bank and £32,037 was owed to trade creditors.

Case 244 – Director disqualification for multiple breaches of the BBL Scheme

Director Disqualified for 10 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused The Disqualified Director (DD) to breach the conditions of the Bounce Back Loan (BBL) Scheme by applying for a BBL of £50,000 when he knew or ought to have known that DD was only eligible for a loan to a maximum of £12,950, based on total turnover in the accounts for the year ended 31 March 2020. Of the £50,000 DD received, at least £46,950 was paid out for the personal benefit of him and not for the economic benefit of DD. In that:

 The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan). Based on sales income received during 2020, DD was eligible to borrow a maximum of £12,950;

 On 03 July 2020, he applied for a BBL of £50,000 on behalf of DD, stating in the loan application that DD turnover for 2019 was £200,000;

 On 07 July 2020, funds of £50,000 were credited to DD bank account;

 Between 07 July 2020 and 28 January 2021, a total of £46,950 of BBL funds were paid to him and which were not for the economic benefit of DD;

 At Liquidation DD owed £53,000 to its creditors, of which £50,000 was in respect of the BBL and £3,000 owed to the directors.

Case 245 – Director disqualification for breaches of the terms of the Bounce Back Loan Scheme

Director Disqualified for 8 years by a director signed undertaking.

On 28 May 2020, The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to wrongly apply for a Coronavirus Bounce Back Loan (BBL) of £45,000, when he knew or ought to have known that The Liquidated Company was not eligible to make an application for a loan of that amount because The Liquidated Company did not meet the turnover requirements as set out in the terms of the BBL scheme, in that:

 The Liquidated Company was not incorporated until 16 January 2020 and did not open a bank account until 10 February 2020

 Between 10 February 2020 and 28 May 2020, bank statements for the only known bank account operated by The Liquidated Company show a total of £500 being paid into the account and £495 being paid out of the account

 On the BBL application form completed by him on 28 May 2020, the estimated annual turnover of The Liquidated Company was stated to be £300,000

 Between 10 February 2020 and 07 June 2021, the period for which bank statements are available, the statements for the only known bank account operated by The Liquidated Company show that, aside from the funds received from the BBL scheme, a total of £31,778 was paid into the account

 On The Liquidated Company’s application for VAT registration, received by HMRC on 09 November 2020, it stated that The Liquidated Company’s turnover was below the then current registration threshold (which at that date was £85,000) and estimated that The Liquidated Company’s turnover in the next 12 months would be £30,000

 On 01 June 2020, The Liquidated Company received BBL funds of £45,000, which based on the terms of the BBL Scheme would have required that The Liquidated Company had an annual turnover of at least £180,000, whereas, based on a turnover of £30,000 as estimated on its application for VAT registration, The Liquidated Company would only have been entitled to BBL funds of £7,500.

He failed to ensure that The Liquidated Company complied with the terms of the BBL Scheme as funds received from the BBL totalling at least £34,300 were not used for the legitimate economic benefit of The Liquidated Company, in that:

 Prior to the receipt of the BBL funds on 01 June 2020, the credit balance on The Liquidated Company’s bank account was £5

 Between 01 June 2020 and 10 June 2020, The Liquidated Company made 4 payments, totalling £44,500, all of which were paid to TSBL Construction The Liquidated Company (TSBL) of which he was also a director and 50% shareholder

 Subsequent to 10 June 2020, The Liquidated Company has made a further 4 payments to TSBL, totalling £3,550 and has received 17 payments from TSBL, totalling £10,196

 He has confirmed that the £44,500 was paid by The Liquidated Company to TSBL as a loan with the hope that TSBL would be successful enough to subsequently repay The Liquidated Company, but that there was no formal written agreement in place between The Liquidated Company and TSBL

 On the Statement of Affairs filed in The Liquidated Company’s liquidation and signed by him on 29 June 2021, he did not list any assets, meaning that the money that The Liquidated Company had loaned to TSBL was not identified on that document as an amount still being due to The Liquidated Company

 In the Report to Creditors issued in The Liquidated Company’s liquidation it confirms that he had advised that there are no company assets

 TSBL went into Creditors Voluntary Liquidation on 16 July 2021, with assets of £4,800 and liabilities of £104,115 according to the Statement of Affairs signed by him on 08 July 2021, the list of creditors attached to the Statement of Affairs did not include The Liquidated Company as a creditor.

Case 246 – Director disqualification for false application to the BBL Scheme

Director Disqualified for 10 years by a director signed undertaking.

The Banned Director caused The Liquidated Company to apply for and receive a Bounce Back Loan (BBL) of £45,000 on 3 September 2020 using overstated turnover figures in the application form. Consequently, The Liquidated Company

 received more money than it was entitled to from the BBL scheme. In addition, The Banned Director did not use the entire loan monies for the economic benefit of the Company, contrary to the terms of the loan. In that:

 A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019. In the application The Liquidated Company turnover was stated as £200,000.

 Unaudited micro entity accounts for the year ended 31 March 2019 filed at Companies House, show turnover in that period as £53,558. This would have allowed for a BBL of £13,387. Therefore, PTR received £31,613 more than it was entitled to.

 Bank statements provided for the period 4 September 2020 to 12 October 2021 show £32,000 withdrawn as cash on 1 February 2021, and £29,650 drawn to The Banned Director over period 30 September 2020 to 20 June 2021.

 The Banned Director stated he used the BBL funds to purchase a vehicle and pay his salary.

 On 29 October 2021 The Liquidated Company entered liquidation with total liabilities of £48,775, with £45,179 stated as being BBL and £3,596 as The Banned Director.

Case 247 – Director disqualification for breaches of the bounce back loan scheme

Director Disqualified for 10 years by a signed undertaking of the director.

In October 2020 The Disqualified Director caused The Liquidated Company to apply for a government-backed Bounce Back Loan (‘BBL’) totaling £50,000 for which it was not eligible by including false information relating to turnover. In that:

The Liquidated Company was incorporated on 3 January 2013 and commenced trading on the same date.

Company Accounts filed for the year ending 31 January 2019, signed by the Director on 19 October 2019, show a declared turnover of £29,753.00.

Current Account Statements for the same period do not show any material income over and above the declared income in the filed Accounts.

The accounts to 31 January 2020, signed by the Director on 6 January 2021, show a declared turnover of £32,423.00.

On 6 October 2020 The Liquidated Company applied for a BBL of £50,000 from Barclays Bank Plc which was received into the company account on 7 October 2020.

The Disqualified Director stated that the turnover was £200,000 on the BBL application.

Based on the filed Accounts for the year ending 2019, the maximum loan that The Liquidated Company was eligible to receive was £7,438.25.

The Company received £42,561.75 more than it was entitled to

At least £43,570.00 of the loan funds were not used for the economic benefit of the business, but for The Disqualified Director’s personal use contrary to the terms of the BBL.

Case 248 – Director disqualification for applying for a Bounce Back Loan while ineligible

Director Disqualified for 3 years by an undertaking agreed by the director.

On 13 May 2020 The Disqualified Director casued The Liquidated Company to apply for a Government Backed Bounce Back Loan (BBL) of £50,000 when they ought to have known that The Liquidated Company was not eligible for that amount, they then failed to ensure that the entirety of the BBL was used for the economic benefit of The Liquidated Company, in that:

Under the BBL scheme, a business could apply for a loan of up to 25% of its turnover in the calendar year 2019 or an estimated figure if the business was established after January 2019, from a minimum of £2,000, up to a maximum of £50,000;

This estimated turnover figure used on the BBL application of £210,000 is significantly higher than the turnover achieved.

Professionally prepared accounts of The Liquidated Company trading for the period 22 August 2019 to 31 August 2020, show a turnover of £7,804. This figure makes The Liquidated Company ineligible for the minimum loan amount under the terms of the BBL scheme.

Following receipt of the £50,000 BBL funds, 2 payments totalling £45,450 were made from The Liquidated Company bank account to you. These payments were not in the economic benefit of the company.

At liquidation, on 07 March 2022, £47,783 of the £50,000 BBL amount remained outstanding.

Case 249 – Director disqualification for obtaining a BBL it was not eligible for

Director Disqualified for 5 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to obtain a Bounce Back Loan (BBL) of £50,000 in July 2020 that it was not eligible for, having obtained a previous BBL of £50,000 in May 2020 from a different lender, in that:

 On 14 May 2020, The Disqualified Director submitted a BBL application to ‘Bank A’ on behalf of The Liquidated Company for £50,000. The application was approved and £50,000 was deposited into the company bank account held with ‘Bank A’ the same day.

 The Disqualified Director submitted a second BBL application to ‘Bank B’ on behalf of The Liquidated Company for £50,000 on 10 July 2020. The application was approved and £50,000 was deposited into the company bank account held with ‘Bank B’ on 25 July 2020.

 Obtaining 2 BBL’s was contrary to the conditions of the BBL scheme.

 Both bank accounts were opened in order to obtain the BBLs.

 At liquidation The Liquidated Company had liabilities of £140,399.08 of which £100,000 was owed in respect of the two BBLs.

Case 250 – Director disqualification for misuse of funds from the COVID BBL Scheme

Director Disqualified for 6 years by a signed undertaking of the director.

Between 04 June 2020 and 07 July 2020, The Disqualified Director caused The Liquidated Company to breach the conditions of the government backed Bounce Back Loan (BBL) by not using the BBL funds received totalling £50,000 for the economic benefit of The Liquidated Company. In that:

The Liquidated Company was incorporated on 5 August 2019

on 25 May 2020 The Disqualified Director applied for a BBL of £50,000 on behalf of The Liquidated Company, stating estimated turnover to be £220,000

on 27 May 2020 the BBL funds totalling £50,000 were credited to The Liquidated Company bank account increasing the bank account balance to £61,110

between 04 June 2020 and 07 July 2020 four payments totalling £50,000 were made from The Liquidated Company bank account with no evidence that these transactions were for the economic benefit of The Liquidated Company reducing the bank account balance to £3,192

The Disqualified Director has provided no evidence to show why or to whom the four payments were made

The Liquidated Company did not make any repayments in respect of the outstanding BBL and at liquidation on 09 August 2021 The Liquidated Company had no assets and liabilities totalled £73,864 including the outstanding BBL.

Case 251 – Director disqualification for overstating figures to obtain a larger Bounce Back Loan

Director Disqualified for 3 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to apply for a £45,000 Bounce Back Loan (BBL) using overstated turnover figures in the loan application form. As a consequence of which The Liquidated Company received more monies than it was entitled to from the BBL scheme on 2 June 2020. He caused The Liquidated Company to utilise the proceeds received contrary to the terms of the BBL scheme in providing no economic benefit to The Liquidated Company in that:

 The Liquidator’s report dated 13 October 2021 records The Liquidated Company annual turnover to 31 October 2019 at £17,833 and LC bank statements show income of £19,921 for the 2019 calendar year.

 On 04 May 2020, HM Treasury launched the BBL scheme to enable small businesses to apply and receive 100% government backed loans of between £2,000 and £50,000 via an online application process.

 Companies could apply for a loan of up to 25% of turnover in the calendar year 2019, from a minimum of £2,000, up to a maximum of £50,000.

 The 2019 turnover on the basis of bank deposits would have allowed The Liquidated Company to apply for a BBL of £4,980. However, on his application form he declared The Liquidated Company turnover at £180,000. He applied for a £45,000 BBL, £40,020 more than The Liquidated Company was entitled to on the basis of its 2019 turnover. This was deposited into The Liquidated Company bank account on 02 June 2020, leaving a credit balance of £47,500.

 The terms and conditions of the loan stated that it was to be used only to provide economic benefit to the business, and not for personal purposes.

 On 03 June 2020 a payment of £15,000 was made from The Liquidated Company bank account to him.

 On 23 June 2020, another £30,000 was made to him, leaving a credit balance in JHS’s account of £2,579.

Case 252 – Director disqualification for obtaining a Bounce Back Loan through false information

Director Disqualified for 9 years by Order of the Court.

The Disqualified Director (The Disqualified Director) caused or allowed The Liquidated Company (The Liquidated Company) formerly known as The Liquidated Company to apply for Government backed Corona Virus Bounce Back Loans (BBL’s) from Nat West Bank totalling £31,750, which under the BBL scheme it did not have sufficient turnover to qualify for, in particular:

The Liquidated Company changed its name to The Liquidated Company on 28th May 2020.

 Micro Company Accounts for The Liquidated Company for the year ending 31st December 2020 show turnover of £829. Comparative figures for year ended 31st December 2019 show turnover of £3,027. The accounts were signed digitally by The Disqualified Director on the 16th July 2021.

 On the 15th May 2020 an application for a BBL of £25,000 was made by Propnology The Liquidated Company to Nat West. Section 3 of the Loan application asks for the Annual turnover figure and this is stated as £127,000. The form has been signed by him on 13th May 2020.

 The application asks for confirmation that the amount applied for is equal to or less than 25% of Annual turnover for 2019 or if the business was established after 1st January 2019 the estimated annual turnover. The Liquidated Company was established prior to 2019.

 The application form at Section 6.1 states: The Customer confirms that all declarations and confirmations provided as part of this application for the loan are complete and accurate.

 A second Top Up application was made for £6,750 on the 10th November 2020 and it has been signed by him.

 Section 1 of the top up application form states: Please note that the total amount you wish to borrow when combined with your original Bounce Back loan amount must be no more than 25% of annual turnover as certified in the original Bounce Back Loan Application.

 As a result of these applications £25,000 was credited to The Liquidated Company’s Bank Account on 18th May 2020 and £6,750 was credited on 11th November 2020.

 Based on the Turnover of £3,027 shown in the Accounts to 31st December 2019, the maximum The Liquidated Company qualified to apply for under the BBL scheme would be £756. As a result of the inaccurate turnover figure shown in the application form, The Liquidated Company has obtained Government backed loan proceeds of £30,994 beyond that it qualified for.

 A review of The Liquidated Company’s Nat West Bank Statements for the period 1st January 2019 to 31st December 2019 show credits totalling £9,921, comprising of credits from him totalling £2,376, Refunds of £341, Transfer in from an unidentified bank account of £3,464 and a counter credit of £3,740. If the full amount is considered turnover, the maximum qualifying BBL would be £2,480.

 The opening Balance of The Liquidated Company’s Nat West Bank Account, on the 1st January 2019 was £24,238. Outgoings during 2019 totalled £34,267, which includes £11,300 to him, £10,000 to Co-Director, £7,357 online payments to a not for profit organisation dedicated to supporting business, £615 to Amazon, £1,236 to the FCA, £1,173 to JOI Media, £237 Internet charges, £60 Bank charges and other transactions totalling £2,289. The payments to the Directors, are described as Salary/ Loan.

 The Liquidated Company entered Liquidation on the 23rd November 2021 with debts totalling £38,566, which includes £35,500 owed to Nat West.

Case 253 – Director disqualification for multiple breaches of the Bounce Back Loan Scheme

Director Disqualified for 10 years by a director signed undertaking.

On 14 May 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company (the Company) to obtain a government backed Bounce Back Loan (BBL) totalling £50,000. These moneys were not used in their entirety for the economic benefit of the business and/or its creditors, contrary to their terms. In that:

 On 14 May 2020 he submitted an application to the bank for a BBL in the sum of £50,000. Within the BBL application he declared that the BBL would be used to provide economic benefit to the business and would be used wholly for business purposes and not personal purposes.

 On 18 May 2020 the sum of £50,000, being the BBL, was paid into the Company’s bank account. Prior to receipt of the loan the account balance was overdrawn in the sum of £6.52.

 On 26 May 2020 £49,000 was paid directly to him via bank transfer.

 He states that the £49,000 was used to repay his director’s loan account.

 At liquidation on 21 December 2020, the Company owed £49,976.79 of the BBL which remains unpaid.

Case 254 – Director disqualification for breaches of the Bounce Back Loan Scheme

Director Disqualified for 4 years by a signed undertaking of the director.

On 27 May 2020, The Disqualified Director (The Disqualified Director) caused the Liquidated Company (LC) to wrongly apply for a Coronavirus Bounce Back Loan (BBL) of £50,000, when he knew or ought to have known that LC was not eligible for that amount because: the company was not trading at 01 March 2020 and it did not meet the turnover requirements. Furthermore, the monies were not used for the economic benefit of LC, in breach of the BBL terms in that:

LC draft accounts for Year-End 30 April 2020 recorded the annual turnover as of 30 April 2020 as £18,599 and they also show that as of 30 April 2019, annual turnover was £2,337.

Analysis from LC bank statements shows that prior to the BBL, the last receipt into LC bank account was £900 on 06 March 2020. Prior to this, the last receipt into LC bank account was £6,100 on 21 August 2019.

On 27 May 2020, Mr. The Disqualified Director applied for a BBL of £50,000 on behalf of LC. On the BBL application form received from the bank, Mr. The Disqualified Director wrongly declared that LC turnover was £250,000.

On 29 May 2020, LC received BBL funds of £50,000.

Prior to receipt of the BBL funds, LC credit balance on the bank account was £404.

On 30 June 2020, a single payment of £47,963 was paid out which was described on LC bank statements as a foreign payment.

Mr. The Disqualified Director has provided no explanation what this payment was for or whether this was a payment to a creditor of LC and no records have been delivered up to the Liquidator that would explain the purpose of this payment.

Furthermore, the BBL terms and conditions are that a company had to be adversely affected by COVID-19 and trading as at 01 March 2020. The information held on LC file suggests that trading ceased no later than 20 November 2019 after LC sole source of income was from another limited company which was wound up on this date.

Case 255 – Director disqualification for misuse of the COVID Job Retention Scheme

Director Disqualified for 4 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to claim Coronavirus Job Retention Scheme (CJRS) payments, totalling £133,658.23, between 22 April 2020 and 19 August 2020, being after a winding up petition was presented to the court and which he did not ensure was paid in full to employees. In that:

A winding up petition for The Liquidated Company was presented on 14 February 2020;

A winding up order for The Liquidated Company was made on 19 August 2020;

HMRC made payments totalling £133,658.23 into a personal bank account in The Disqualified Director’s name;

Bank statements show that a maximum of £28,783.20 may have been transferred to employees, leaving at least £104,875.03 unaccounted for.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to claim Coronavirus Job Retention Scheme (CJRS) payments, which it was not entitled to claim, totalling £89,255.00, between 9 September 2020 and 11 November 2020, which was after The Liquidated Company entered compulsory liquidation on 19 August 2020. In that:

Winding up order for The Liquidated Company was made on 19 August 2020;

HMRC made payments totalling £89,255.00 into a personal bank account in The Disqualified Director’s name;

Bank statements show that a maximum of £18,916.44 may have been transferred to employees, leaving at least £70,338.56 unaccounted for.

Case 256 – Director disqualification for failure to repay the Bounce Back Loan Scheme

Director Disqualified for 9 years by a director signed undertaking.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to breach the terms of the Coronavirus Business Interruption Scheme (CBILS), in that; The Liquidated Company obtained a CBILS loan of £100,000 on 13 January 2021 and failed to use the loan amount (or part of it) to repay the outstanding balance of an existing Business Bounce Bank Loan (BBL) previously obtained on 09 May 2020.

On 09 May 2020 The Liquidated Company obtained a BBL of £35,000

On 13 January 2021 The Liquidated Company submitted a CBILS application and subsequently received a CBILS loan of £100,000 on 14 January 2021

Paragraph 6 (h) of the CBILS terms & conditions, signed by The Disqualified Director on 13 January 2021, stated that The Liquidated Company as the borrower will use the CBILS to repay the whole of any existing BBL. However this did not happen.

The Liquidated Company entered liquidation on 16 December 2021 with the BBL remaining unpaid.

Case 257 – Director disqualification for breaches of the terms of Bounce Back Loan Scheme applications

Director Disqualified for 7 years by a director signed undertaking.

On 10 November 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company (MSL) to make a Bounce back loan (BBL) application of £30,000 on behalf of MSL when he knew or ought to have known that MSL was not entitled to access the scheme. He made wrongful declarations by stating MSL was engaged in trading / commercial activity on the date of BBL application and that funds from the BBL would be used only for the economic benefit of MSL. He transferred £28,716 of the bounce back loan funds to himself and to an associate, which did not provide economic benefit to MSL thus breaching the conditions of the bounce back loan scheme.

 Under the Bounce Back Loan scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover. The turnover figure was self-certified by the applicant. To be eligible for the loan businesses were required to have been adversely impacted by Coronavirus, carrying on its business on 1 March 2020, be engaged in trading or commercial activity in UK at the date of application, and that credit granted under the BBL will only be used to provide economic benefit to the company and not for personal use.

 MSL was incorporated on 18 May 2017.

 MSL’s bank statements show no trading income since November 2019 and it had ceased to actively trade by June 2020.

 On 10 November 2020 he applied for a bounce back loan of £30,000 on behalf of MSL, declaring its turnover for calendar year of 2019 to be £180,000

 MSL received the BBL funds of £30,000 on 12 November 2020 resulting in a balance of £29,941 in credit.

 On 12 November 2020 2 payments totalling £28,716 were made to him and an associate.

 At liquidation MSL had declared liabilities of £60,000 which include £30,000 in respect of the BBL, and £30,000 to HMRC.

Case 258 – Director disqualification for breaches of the use of funds from the Bounce Back Loan Scheme

Director Disqualified for 7 years by a signed undertaking of the director.

On 22 June 2020 The Disqualified Director caused The Liquidated Company to obtain a government backed Bounce Back Loan (BBL) totalling £32,687 and did not use at least £21,422 for the economic benefit of the business, contrary to the terms of the BBL. In that:

 In his questionnaire dated 05 September 2021 he stated that the Company’s last contract was terminated on 31 May 2020. Attempts were made to secure alternative contracts for the Company, and he was placed on the furlough scheme throughout. In August 2020 he took a 3-month contract in a personal capacity having been unsuccessful in securing a Company contract.

 On 22 June 2020 he submitted an application to the bank for a BBL in the sum of £32,687.

 Within the BBL application he declared that the BBL would be used to provide economic benefit to the business and would be used wholly for business purposes and not personal purposes.

 He stated in his questionnaire that a proportion of the BBL was utilised towards paying salary and ongoing business expenses. The remaining balance had been intended to improve the Company’s cash flow but was ultimately not utilised.

 An analysis of the Company’s bank statements shows that the BBL of £32,687 was deposited in the Company’s bank account on 24 June 2020 and in the period 13 July 2020 to 21 August 2020 a total of £25,500 was paid to him.

 At liquidation on 05 March 2021, the Company owed its creditors £60,899.40, including £9,216.00 owed to him and the £32,687 of the BBL which remains unpaid.

Case 259 – Director disqualification for breaches of the application terms for the Bounce Back Loan Scheme

Director Disqualified for 7 years by a signed undertaking of the director.

Between 04 May 2020 and 29 September 2020, The Company Director (The Company Director) caused The Dissolved Company and The Dissolved Company Services Limited (IC) to breach the Bounce Back Loan (BBL) Scheme by making an inaccurate application for a loan when The Dissolved Company was classed as a business in difficulty, in that:

On 22 October 2019, a Winding-up Petition was presented against IC;

On 06 November 2019, The Company Director began discussions regarding a Company Voluntary Arrangement (CVA) with an Insolvency Practitioner because IC was insolvent and could not pay its debts as and when due;

As a result of the above, by 31 December 2019, IC was classed as a Business In Difficulty but this was not declared on the BBL application form;

On 11 February 2020, IC entered into a CVA with liabilities totalling £109,040.71 but this was not declared on the BBL application forms;

On 04 May 2020, IC applied for a BBL of £50,000 which it was not entitled to for the reasons set out above. IC received the £50,000 on 06 May 2020;

On 16 June 2020 The Company Director caused The Dissolved Company to make a fraudulent application for a second BBL in breach of the terms of the scheme which at the time allowed for only one application when he knew or ought to have known that IC was not eligible in that:

Businesses eligible for a BBL were able to borrow up to 25% of their turnover, with a maximum loan of £50,000;

On 16 June 2020, IC applied for a second BBL of £50,000 which it was not entitled to for the reasons set out above and because IC had already received the maximum amount allowed under the BBL Scheme. IC received the £50,000 in respect of this second application on 18 June 2020;

On 02 December 2020, IC entered into Creditors’ Voluntary Liquidation with liabilities of £341,432.57, including the £100,000 owed to the Government in respect of the two BBLs.

Case 259 – Director disqualification for breaches of over-application for a BBL

Director Disqualified for 7 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to breach the terms and conditions of the Bounce Back Loan Scheme (BBL) by applying for a BBL of £50,000 when he knew or ought to have known that The Liquidated Company was only eligible for a loan to a maximum of £15,747, based on management accounts for the period 1 January 2019 to 31 December 2019. Of the £50,000 The Liquidated Company received, £39,015 was paid out for the personal benefit of The Disqualified Director contrary to the conditions for the use of a BBL. In that: –

 The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (with a maximum loan of £50,000), for the purpose of a business carried on or intended to be carried on by the applicant.

 Based on the sales income recorded in management accounts for the period 1 January 2019 to 31 December 2019 The Liquidated Company was eligible to borrow a maximum of £15,747.

 On 6 May 2020, The Disqualified Director applied for a BBL of £50,000 for The Liquidated Company stating the estimated turnover as £204,166.

 On 12 May 2020, BBL funds of £50,000 were paid into The Liquidated Company’s bank account.

 Between 18 May 2020 and 3 August 2020, a total of £39,015 of BBL funds were paid to The Disqualified Director’ personal benefit, £30,015 in respect of finance of The Disqualified Director’ personal motor vehicle and £9,000 in respect of the repayment of director’s loans.

 At the date of the Liquidation on 30 June 2021, a total of £129,093 was owed to creditors, of which at least £23,345 was owed to HMRC, £60,264 to the bank, £1,410 to trade creditors and £44,074 to The Disqualified Director.

Case 260 – Director disqualification for breaches of multiple breaches of the BBL scheme

Director Disqualified for 7 years by an undertaking agreed by the director.

On 4 May 2020, The Disqualified Director, on behalf for The Liquidated Company, applied for and subsequently received a Government backed Bounce Back Loan totalling £50,000 ( BBL 1). On 20 May 2020, The Disqualified Director, on behalf for The Liquidated Company, applied for and subsequently received a further Government backed Bounce Back Loan totalling £50,000 (BBL 2) despite having already applied for and received BBL 1. Further, the funds advanced were not used in their entirety for the economic benefit of The Liquidated Company business, but were used to make payments to The Disqualified Director and to a company connected to him and of which he is sole director and shareholder. In that:

BBL 1

On 4 May 2020, The Disqualified Director made an application on behalf of The Liquidated Company for a bounce back loan.

On 11 May 2020, the sum of £50,000 was paid into The Liquidated Company bank account.

The balance on the account prior to receipt of the BBL was overdrawn in the sum of £21,972.33.

BBL 2

On 20 May 2020, The Disqualified Director made a further application on behalf of The Liquidated Company for a bounce back loan.

On 22 May 2020, the sum of £50,000 was paid into the The Liquidated Company other bank account.

The balance on the account prior to receipt of the BBL 2 was £3,505.85.

When making the application for BBL 2, The Disqualified Director falsely declared that the BBL 2 application was The Liquidated Company  only application for a Bounce Back Loan.

Use of funds

Net payments in the sum of £52,520.56 were paid to a company connected to The Disqualified Director between receipt of the first BBL on 11 May 2020 and 15 December 2020 of which £28,027.67 was funded by BBL 1.

On the 26 May 2020, the sum of £28,000 was transferred from The Liquidated Company other bank account which had been credited with BBL 2 to an account understood to be held in the name of The Disqualified Director personally.

As at the date of liquidation, both BBL 1 and BBL 2 remained outstanding in full.

Case 261 – Director disqualification for breaches of applying for a BBL for a company that was not trading

Director Disqualified for 7 years by a signed undertaking of the director.

On 02 June 2020, The Disqualified Director caused The Liquidated Company to apply for a Coronavirus Bounce Back Loan (BBL) of £50,000, when he knew or ought to have known that The Liquidated Company was not eligible for that amount because The Disqualified Director was not trading at 01 March 2020 and did not meet the turnover requirements as set out in the terms of the BBL Scheme, in that:

 The The Liquidated Company professionally prepared accounts for Year-End 31 May 2020 indicated minimal trading activity for the preceding 12 months, with a turnover of £2,066.

 The Report to Creditors indicates that trading had ceased prior to 01 March 2020. The BBL terms and conditions for eligibility were that a company had to be adversely affected by COVID-19 and engaged in trading as of 01 March 2020.

The Liquidated Company bank statements show that prior to receiving the BBL funds, the last substantial receipt into The Liquidated Company bank account was £500 on 04 October 2019.

 In the accounting year 1 June 2019 to 31 May 2020 total credits were made to The Liquidated Company bank account of £5,603

 On 02 June 2020, he applied for a BBL of £50,000 on behalf of The Liquidated Company. On the BBL application form received from the bank, he declared that The Liquidated Company turnover was £250,000.

 On 04 June 2020, The Liquidated Company received BBL funds of £50,000.

He has subsequently failed to ensure that The Liquidated Company complied with the terms of the BBL Scheme as the funds received from the BBL were not then used for the legitimate economic benefit of The Liquidated Company, in that:

 Prior to receipt of the BBL funds on 04 June 2020, the credit balance on The Liquidated Company bank account was £6.

 Following receipt of the BBL, the entire £50,000 remained in The Liquidated Company bank account until 17 December 2020. The Liquidated Company received no other deposits into the account over this period.

 On 18 December 2020 and 15 March 2021, 2 payments of £5,000 and £3,800 respectively were made from The Liquidated Company bank account to an entity that it has not been possible to identify from the available information, and he has subsequently failed to confirm the identity of the recipient of this payment or show that the payments were for the legitimate economic benefit of The Disqualified Director.

 On 09 April 2021, £12,000 was paid from The Liquidated Company  bank account to a third party and neither the recipient of these funds or he has provided an explanation of the purpose of this payment or how it was to the economic benefit of The Liquidated Company.

 On 14 April 2021, a payment of £20,010 was paid from The Liquidated Company bank account to a company that operated in the sale of a variety of goods which was not a sector of the market in which The Liquidated Company had ever previously traded. He has provided no explanation as to why a Company that traded as an electrical contractor would pay £20,010 to this company.

 On 15 April 2021, an unexplained payment of £8,020 was paid to an entity that it has not been possible to identify from the available information, and he has subsequently failed to confirm the identity of the recipient of this payment.

 He has provided no explanation of the purpose of any of these payments were, nor whether or how, these payments were to The Liquidated Company legitimate economic benefit.

 No records have been delivered up to the Liquidator that would explain the purpose of these payments.

 No repayments have been made in respect of the BBL

Case 262 – Director disqualification for breaches of using false information to obtain a BBL

Director Disqualified for 4 years by Order of the Court.

The Disqualified Director  (DD) caused or allowed FTB The Liquidated Company Limited (the Company) to apply for and obtain a Government backed Bounce Back Loan (BBL) totalling £50,000. The BBL application included false or inaccurate information. Thereafter in breach of the BBL scheme the BBL was not used in its entirety for the economic benefit of the business of the Company. In that:

– in August 2020 the Company applied for a BBL of £50,000;

– on 17 August 2020 the sum of £50,000, being the BBL, was paid into the Company bank account. Prior to receipt of the BBL the bank account balance stood at £9,967.21 in credit;

– in the BBL application form the annual turnover for the Company is stated £200,000. This is notwithstanding that that: (i) the annual accounts for the Company for the period ended 29 February 2020 stated turnover for the Company £164,987, and (ii) an analysis of turnover in the Company bank statements for the period 15 August 2019 to 14 August 2020 disclosed turnover £128,957;

– the BBL application form requested an up to date annual turnover figure. DD knew or ought to have known that the turnover of the company was not £200,000. By overstating the turnover, the company received the maximum amount of £50,000;

– Based on turnover of £128,597, the maximum amount of BBL loan the Company was entitled to was in the region of £32,100. The Company therefore received £17,900 more than it was entitled to;

– following the first nationwide lockdown, a partial reopening of pubs and bars was allowed on 09 July 2020 and on 06 October 2020 a full lockdown was in place until 02 November 2020

– following receipt of the BBL between 18 August 2020 and 12 October 2020 the Company paid £10,750 to DD, £15,000 to her co-directors, and £4,500 to a connected third party;

– the BBL was used to facilitate the payments to DD, her co-directors, and the connected party, which the Company could not otherwise have afforded to pay. These payments were not made in the economic benefit for the business

– the Company continued trading following receipt of the BBL and ceased trading on 08 July 2021;

– at liquidation in July 2021, the Company owed its creditors at least £50,210.71, including the BBL of £50,000 which remains unpaid.

Case 263 – Director disqualification for breaches of misuse of BBL funds

Director Disqualified for 6 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to miss-use a Government backed Bounce Back Loan Scheme (BBL) by failing to use it for the economic benefit of the business but for the benefit of himself, in that:

 On 02 July 2020 he signed the company’s bank application for a BBL in the sum of £50,000.

 On 21 July 2020 the BBL funds of £50,000 was paid into The Liquidated Company bank account. Prior to receipt of the loan the account balance stood at £232 in credit. Between 21 July 2020 to the date of liquidation on 09 December 2020 further income was received into the bank account totalling £11,530 comprising of £10,329 Job Retention Scheme grant (JRS) and £1,201 sundry income. Therefore, the opening credit balance plus funds received between 21 July 2020 and 09 December 2020 totalled £61,762.

 Between 07 August 2020 and 02 November 2020 £51,548 was transferred to his personal account in 11 payments on a monthly basis as follows: August £4,000, September £10,123, October £23,924 and November £500.

 The bank statements show that The Liquidated Company made no payments to employees. He was the sole beneficiary of the JRS totalling £10,329 received between 21 July 2020 and 09 December 2020. The JRS entitlement to him has been deducted from the total amount at £50,000 leaving £39,671 as the benefit received by him from the BBL funds and by contrast The Liquidated Company received the economic benefit of only £10,329.

 From the BBL of £50,000, he received the economic benefit of £39,671 instead of the company for which it was intended. As a result, by the date of the liquidation creditors totalled £74,472 of which £50,000 was outstanding to the bank.

Case 264 – Director disqualification for personal use of BBL funds

Director Disqualified for 5 years by a director signed undertaking.

On 19 May 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to apply for a Bounce Back Loan (BBL) of £50,000 and used the funds for his personal benefit when he knew or ought to have known that BDEL failed to be eligible for the loan in that:

1. In order to be eligible for a BBL, both the Government and Starling Bank guidance stated that a company had to be established and operating before 1 March 2020 in order to meet the application criteria. LC was incorporated 25 November 2015 however Dormant Accounts were filed for the years ended 30 November 2019 and 30 November 2020 and therefore LC was not eligible to apply.
2. On the 19 May 2020 The Disqualified Director made an application for a BBL in the sum of £50,000 and made a declaration that LC met the eligibility criteria for the loan.
3. Within the application a turnover of £210,000 was used. On 28 August 2020 The Disqualified Director filed Dormant Accounts at Company’s House for the period ended 30 November 2019. On 11 February 2021 The Disqualified Director filed Dormant Accounts at Company’s House for the period ended 30 November 2020.
4. On 22 May 2020 £50,000 was paid into the company bank account.
5. On 11 July 2020 The Disqualified Director used £6,499 to purchase a motor vehicle for his private use.
6. On 25 August 2020 The Disqualified Director purchased a further vehicle for a cost of £12,600.
7. Between 30 September 2020 and 18 May 2021 The Disqualified Director withdrew additional £13,515 in salary, dividends and bank transfers.
8. LC failed to be eligible for the Bounce Bank Loan Scheme as it was not trading at the date of the application and the loan was used for personal purposes and not to provide economic benefit to the business
9. At liquidation the BBL of £50,000 remained outstanding and has not been repaid

Case 265 – Director disqualification for obtaining a BBL the company was not eligible for.

Director Disqualified for 10 years by an undertaking agreed by the director.

On 23 July 2020 The Banned Director caused The Liquidated Company to falsely apply for a Bounce Back Loan (BBL) of £30,000 when it was not eligible and caused The Liquidated Company to breach the terms of the BBL scheme as the funds were not applied for the economic benefit of the company and The Liquidated Company would not be in a position to make timely repayments in the future. The Banned Director failed to notify The Liquidated Company’s bankers of his intention to dissolve The Liquidated Company, in breach of Section 1006 of the Companies Act 2006.

 Under the BBL scheme, businesses were able to apply for a BBL if they were engaged in trading or commercial activity in the UK at the date of the application, were carrying on business on 01 March 2020 and had been adversely affected by Covid. They were required to confirm they had understood the costs associated with repayment of the loan and they were able and intended to complete timely repayments in the future. The funds were also to be used for the economic benefit of the business and not for personal purposes.

 The Liquidated Company’s accounts for the period 01 November 2018 to 31 January 2020 stated that the company had ceased trading on 31 January 2020.

 On 09 March 2020 a P45 was produced for The Banned Director confirming his employment with The Liquidated Company had ceased on 31 January 2020.

 The application to dissolve the company was completed on 10 March 2020. However, an objection was raised by HM Revenue and Customs (HMRC) due to Corporation Tax liabilities being outstanding, and the dissolution was suspended.

 On 01 May 2020 The Banned Director signed the application to cancel the VAT registration, which stated the company had ceased trading on 31 January 2020.

 The BBL of £30,000 was paid into The Liquidated Company’s bank account on 24 July 2020.

 Once the Corporation Tax liabilities had been paid and HMRC had updated their records, the accountant submitted a new application to dissolve The Liquidated Company on 13 August 2020.

 On 13 August 2020 the BBL funds were transferred to a third-party individual and were not used for the economic benefit of The Liquidated Company.

 The Liquidated Company was dissolved on 10 November 2020 owing £30,000 to the bank in respect of the BBL.

 The Banned Director breached Section 1006 of the Companies Act 2006 by failing to notify The Liquidated Company’s bankers of his intention to dissolve The Liquidated Company.

 The Banned Director repaid the BBL in full on 29 November 2022.

Case 266 – Director disqualification for breaches of the BBL scheme conditions

Director Disqualified for 4 years by a director signed undertaking.

On 17 October 2020 The Disqualified Director (The Disqualified Director) caused  The Liquidated Company (LC) to apply for a Bounce Back Loan (BBL) of £40,000 and between 17 October 2020 and 24 November 2020 caused LC to pay all the BBL to himself and not use it for the economic benefit of LC, contrary to the terms of the loan. In that:

Bounce Back Loan Scheme conditions state that funds are to be used for the economic benefit of the business and not for personal purposes.

At 31 March 2020 LC year-end accounts disclosed The Disqualified Director owed LC £68,006 as an outstanding Directors loan account (DLA).

On or around 03 July 2020, LC  last contract came to a natural conclusion and all further receipts from this date into LC bank account to the liquidation comprised solely of receipts from the government job retention scheme (Furlough) or from the BBL.

On 17 October 2020 a BBL of £40,000 obtained by The Disqualified Director was paid into LC bank account.

Between 1 April 2020 and 31 March 2021 The Disqualified Director’s DLA was debited with (increased by) a further £54,685 (of which £40,000 came from BBL funds), resulting in The Disqualified Director owing LC £123,154.

Between 20 October 2020 and 24 November 2020, 5 payments totalling £40,000 were made from LC bank account, with the reference P E The Disqualified Director Salary. The withdrawals were all applied to The Disqualified Director’s DLA account, increasing the balance owed by him to LC.

LC draft year-end accounts to 31 March 2021 were available to The Disqualified Director on 17 June 21. These accounts show a dividend of £51,850 payable from distributable reserves. This and other allowable adjustments reduced the balance owed by The Disqualified Director on his DLA to £71,304.

Despite The Disqualified Director stating BBL funds were used as working capital to promote LC, the profit and loss account for the same draft accounts disclose no amounts expended by LC in respect of marketing or other promotional activities.

At 14 July 2021, the date of the liquidation, LC had creditors of £68,721, including £28,622 owed to HMRC and £40,000 owed to the bank in relation to the BBL.

The Disqualified Director has subsequently paid £8,000 a full and final settlement of his outstanding DLA to the liquidator.

As of this date, no payments were made towards the BBL and the full amount remains outstanding.

Case 267 – Director disqualification for breaches of using misleading information on a BBL application

Director Disqualified for 7 years by Order of the Court.

On 23 November 2020, The Disqualified Director, caused The Liquidated Company to provide misleading information to a bank, to obtain a Bounce Back Loan (BBL) of £50,000 when The Liquidated Company was eligible for a BBL of no more than £10,833. In that:

 The Disqualified Director was the sole director of The Liquidated Company from incorporation on 03 May 2017.

 BBLs were limited to 25% of 2019 calendar year turnover, to a maximum loan value of £50,000, and were to be used for the economic benefit of the company.

 Accounting ledgers for 2019 show turnover of £43,330, so The Liquidated Company was eligible for a BBL of no more than £10,833.

 In the BBL application dated 23 November 2020, The Disqualified Director was asked to provide PSH’s 2019 turnover, and misleadingly provided a turnover figure of £200,000, when turnover was £43,330 in 2019.

 By providing the misleading information, The Liquidated Company obtained a BBL of £50,000, at least £39,167 in excess of the BBL amount that it was eligible for.

 Bank statements confirm receipt of a BBL of £50,000 on 12 January 2021. Prior to receipt of the BBL, the balance on the bank account was £127.

 Following receipt of the BBL on 12 January 2021, bank statements show sales receipts of £10,349 between 12 January 2021 and 15 April 2021. During the same period, payments of £29,750 were made to The Disqualified Director, and £7,500 was paid to a relative. In addition, £18,651.99 was withdrawn in cash between 13 January 2021 and 25 January 2021. Accounting records record that of the payments made, £32,900 was accounted for as an increase in The Disqualified Director’s directors account, £7,100 was accounted for as wages, and £13,250 was accounted for as equity dividends, a total of £53,250.

 Creditors at liquidation total £50,501, including the BBL of £50,000.

Case 268 – Director disqualification for over stating application to the BBL scheme

Director Disqualified for 9 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to breach the conditions of the Bounce Back Loan (BBL) Scheme by applying for a BBL of £50,000.00 when he knew or ought to have known that The Liquidated Company was only eligible for a loan to a maximum of £11,895.00 based on the company’s turnover.

 The BBL criteria allowed a business to borrow between £2,000.00 and up to 25% of the company turnover (up to a maximum of a £50,000.00 loan).

 Accounts signed by him, for the year ending 31 May 2020, show the company turnover was stated as £47,579.00, meaning Grillz was eligible to borrow a maximum of £11,895.00.

 The company bank account shows that from 01 June 2020 until 26 August 2020, The Liquidated Company generated £170.00 in business income.

 On 26 August 2020, applied for a BBL of £50,000 on behalf of The Liquidated Company. In the application form, he declared that The Liquidated Company’ up to date annual turnover was £210,000.00.

 On 28 August 2020, a £50,000.00 BBL was paid into the company bank account by HSBC.

Case 269 – Director disqualification for obtaining a BBL while ineligible

Director Disqualified for 10 years by an undertaking agreed by the director.

On 27 July 2020 The Company Director (The Company Director) caused The Dissolved Company (ISL) to breach the conditions of the Bounce Back Loan (BBL) facility by fraudulently applying for a BBL of £20,000 when he knew or ought to have known that ISL was not entitled to the loan having previously applied for and received a BBL of £50,000 on 5 May 2020:

Under the BBL scheme businesses were able to apply for up to 25% of their turnover to a maximum of £50,000. Businesses which originally borrowed less than the maximum amount available to them under the Scheme were eligible to top-up their original loan, however the total loan amount was not to exceed 25%. Only one loan was available to businesses.

The Company Director made an application for a BBL of £50,000 on behalf of ISL on 8 May 2020 declaring income of £320,000.

The Company Director made a further BBL application of £20,000 on behalf of ISL on 27 July 2020.

The Company Director signed the declaration on the application form and BBL agreement on 27 July 2020 confirming that DC had not received any other bounce back loan and that he was the company director.

On 28 July 2020 DC received £20,000 from the BBL.

Total liabilities at liquidation amount to £85,915 which include debts of £70,000 in respect of BBL, £15,000 to another bank and £915 to HMRC.

Case 270 – Director disqualification for breaches of the terms of BBL application

Director Disqualified for 7 years by a director signed undertaking.

1.1 The Disqualified Director applied for and obtained a Government backed Bounce Back Loan (BBL) totalling £19,000 for which the Company was not eligible. In that:

1.1.1 the Company was incorporated on 14 October 2019 and The Disqualified Director was appointed as the sole director on the same day. The bank account with Barclays Bank was opened on 06 November 2019;

1.1.2 between 06 November 2019 and 24 June 2020 the Barclays bank statements show that the only credit received into the bank account was £50, being on 13 January 2020 from a bank account of a company in which The Disqualified Director’s husband is the sole shareholder and director;

1.1.3 on 25 June 2020 The Disqualified Director applied for a BBL in the sum of £19,000 after confirming that the turnover for the 12 months from 14 October 2019 was predicted to be £76,500 in the knowledge that in the first 8 months of trading the turnover was only £50 and the Company was not entitled to a BBL having not met the criteria;

1.1.4 between 13 January 2020 and 02 November 2020 the total sum of credits received into the bank account amounted to £32,710 including £19,000 being the BBL. The remaining £13,710 were transfers made from companies associated with Gohar;

1.1.5 between 13 July 2020 and 16 October 2020, The Disqualified Director withdrew sums totalling £17,140 in cash;

1.1.6 between 02 July 2020 and 02 November 2020 payments were made to Gohar totalling £13,539.60 with the narrative ‘salary’ where there is no evidence of any corporate activity.

Case 271 – Director disqualification for providing false information on a BBL loan

Director Disqualified for 3 years by a signed undertaking of the director.

The Disqualified Director (‘The Disqualified Director) caused The Liquidated Company (‘LC’) to apply for and obtain a Government-backed Bounce Back Loan (‘BBL’) for £30,000 to which it was not entitled, by providing false or knowingly inaccurate information regarding LC’s turnover in 2019. In addition, the proceeds of the loan were paid in full to him and were not used for the economic benefit of the business, which was a misappropriation of the loan and a misuse of the Covid support measures. In that:

Obtaining the BBL

 LC was incorporated and commenced trading in September 2018;

 Its bank statements record income of 43,601 for the calendar year 2019 which would have entitled LC to a BBL of £10,900;

 On 22 May 2020 he applied to LC bank for a BBL of £30,000 stating that its turnover in 2019 had been £120,000; and by overstating LC turnover LC has received £19,900 more BBL than it was entitled to

 The BBL was paid into the account on 27 May 2020.

Disbursal of the BBL

 Immediately prior to the receipt of the BBL the bank account was in credit by £99;

 On 03 June 2020 £30,000 was paid to him and used for personal use rather than the economic benefit of the company

 He advised that his intention had been to buy a vehicle, however in the event he used the BBL to pay a personal loan of £22,000 and the balance for living expenses;

 Repayments of the BBL totalling £2,802 were made at the liquidation. Liabilities totalled £36,027 of which £27,192 were in respect of the outstanding BBL.

Case 272 – Director disqualification for breaches of terms of use of the BBL funds

Director Disqualified for 10 years by a director signed undertaking.

The Disqualified Director failed to ensure that The Liquidated Company used a Government backed Bounce Back Loan (BBL) of £50,000.00 for the economic benefit of the business, contrary to the terms of the BBL scheme, in that:

 During May 2020 he made an application to a financial institution for a BBL in the amount of £50,000.00 on behalf of the company.

 On 19th May 2020 the company received £50,000.00 into its bank account in relation to the BBL. At that time the company’s balance on its bank account was £6,491.66 in credit.

 Between 16th June 2020 and 29th July 2020 payments totalling £79,550.54 were paid out of the company bank account for the benefit of a business belonging to his spouse.

 Between 6th July 2020 and 16th July 2020 payments of £9,739.32 and £3,286.70 were made to his personal credit cards.

 As of 29th July 2020, the company bank account was overdrawn in the amount of £24,089.47.

 On 18th February 2021 the company was placed into Liquidation when it had creditors of £283,961.55

Case 273 – Director disqualification for breaches of BBL accounting requirements

Director Disqualified for 5 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) failed to ensure that The Liquidated Company Ltd maintained and/or preserved adequate accounting company records, or in the alternative, following liquidation failed to deliver up such records as were maintained and/or preserved to the liquidator from at least September 2019 to liquidation. As a result, it is not possible to:

Verify whether a £50,000 loan introduced into the company on 20/05/2020, via a Government guaranteed BBL scheme with the express intention of providing economic benefit to the business, were utilised for this purpose:

Determine the true income and expenditure of MHK Ltd;

Establish the reason for payments from MHK Ltd’s bank account referenced Mb 05010610166168 amounting to £45,717;

Establish the reason for card payments from MHK’s bank account referenced to an enforcement agency amounting to £12,929.93;

Establish the reason for card payments from MHK’s bank account referenced Debit Finance amounting to £6,933;

Establish the nature of cash withdrawals from MHK Ltd’s bank account amounting to £142,770.

Determine the nature of payments from MHK Ltd’s bank account referenced Loan/Mortgage amounting to £2,845;

Determine if transactions made from MHK’s benefit were solely made for the benefit of the company;

Determine who had control of the affairs of MHK Ltd throughout the period;

Verify the actual liability due in respect of VAT for the periods 10/20 to 10/21 in respect of which HMRC has issued assessments totalling £241,536.41;

Establish the cause of insolvency of MHK Ltd.

Case 274 – Director disqualification for allowing a co-director to breach the terms of the BBL scheme

Director Disqualified for 9 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused or allowed his co-director, DD2, to apply on behalf of the Company for and receive a Government backed Bounce Back Loan (BBL) in the sum of £50,000 for which the Company was not eligible by reason of the fact that (1) the Company was dormant at the time of the application and (2) inaccurate information relating to turnover being provided to the BBL lender. In that:

Lending requirements/declarations

The BBL Scheme allowed businesses to borrow between £2,000 up to 25% of a business’ turnover for the calendar year ended 31 December 2019 with the maximum loan available being £50,000. The businesses were required to be active at the time of applying for a BBL.

In order to obtain a BBL for £50,000, the Company’s turnover would have to have been stated to be at least £200,000 in the calendar year ended 31 December 2019. The Company filed dormant accounts for the year ended 31 October 2019 and did not commence trading until receipt of the BBL.

The Company’s BBL remained outstanding in the total sum of £50,000 on liquidation.

Case 275 – Director disqualification for breaches of the COVID Business Interruption Loan Scheme

Director Disqualified for 7 years by an undertaking agreed by the director.

On 20 May 2021 The Banned Director caused The Insolvent Company to breach the conditions of the Coronavirus Business Interruption Loan Scheme (CBILS) by transferring funds obtained under the scheme to his benefit and not for the benefit of the The Insolvent Company, in that:

 A Share Purchase Agreement (SPA) was made between the former directors of The Insolvent Companyand a company that The Banned Director was the sole director and shareholder dated 04 February 2020 which detailed the sale of The Insolvent Company to the connected company, with £76,418 being the remaining balance as at 20 May 2021.

 On 05 February 2021, a former director emailed The Banned Director, stating they were intending to instruct their solicitor to enforce the terms of the share sale.

 The Banned Director made an application to W (formerly L) for a CBILS loan.

 Part V of W confirmation letter, which was signed by The Banned Director on 19 May 2021, states, the Lending Facility is being used for the purposes of your working capital or investment needs, or refinance of debt, in order to support your trading in the UK.

 The first point of the declaration signed by The Banned Director states, I am/we are entering this agreement wholly or predominately for the purpose of a business carried on by me/us or intended to be carried on by me/us.

 The Insolvent Company obtained a £100,000 loan under the CBILS from Whiteoak on 20 May 2021.

 On the same day the loan was received, £76,418 was paid to a former director of The Insolvent Company for the deferred payment for shares in the company.

 The SPA notes The Banned Director as a guarantor of the agreement to guarantee the performance by the buyer of its obligations and therefore the payment for the outstanding balance discharges The Banned Director by satisfying that guarantee.

 The Banned Director stated to the Insolvency Service that the payment to the former director was for the purchase of the shares in the company.

 At liquidation, The Insolvent Company had liabilities totalling £771,771.80, including £100,000 to Lloyds Bank Plc and £131,435 to L in respect of CBILS loans, £154,000 trade & expense creditors and £162,454 to HMRC in respect of unpaid Corporation Tax, PAYE, National Insurance and VAT.

Case 276 – Director disqualification for breaches of the terms of BBL application terms

Director Disqualified for 10 years by a director signed undertaking.

On or around 18 May 2020, The Disqualified Director caused the Liquidated Company to apply for and obtain a Government-backed business bounce back Loan (BBL) totalling £50,000 (‘the loan monies’) of which the Liquidated Company was only eligible for a maximum loan of £10,250, by providing inaccurate and/or false information contrary to the terms of the loan, in that:

In submitting the Liquidated Company’s BBL application The Disqualified Director declared on its behalf that its turnover in 2019 was, or was expected to be, at least £200,000;

According to the Liquidated Companys financial statements for the year to 30 September 2019, turnover in that period had been £30,286;

According to the company’s bank statements, trade credits of £10,713 were received into the account in the period 1 October 2019 to 31 December 2019.

The Disqualified Director knowingly overstated the turnover of DET by at least £159,001 in order to obtain the maximum BBL permitted

The Statement of Affairs signed by The Disqualified Director on 02 March 2022 shows the BBL lender as the sole creditor owed a total sum of £50,963.

Case 277 – Director disqualification for breaches of multiple COVID loan schemes

Director Disqualified for 7 years by Order at trial.

The Disqualified Director caused the Liquidated Company (the company) to apply for and receive a Bounce Back Loan (BBL) of £50,000 to which the company was not entitled. Furthermore, The Disqualified Director caused the company to claim JRS Grants from HM Revenue & Customs (HMRC) from which The Disqualified Director received furlough pay, when he knew, or ought to have known, that the company was not fully entitled to Covid-19 benefits. In that:

BBL:

A business could apply for a BBL of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019.

On or around 02 June 2020 The The Disqualified Director, on behalf of the company, completed and submitted a BBL application within which The Disqualified Director stated the company’s 2019 turnover was £200,000. The Disqualified Director also confirmed that the loan value was equal to, or less, than 25% of the company’s annual turnover for 2019 and the company had been adversely impacted by Covid-19.

The company’s annual accounts to 28 February 2019 and 28 February 2020 disclose the company achieved turnover of £69,941 and £77,369 respectively, giving rise to an average turnover in 2019 calendar year of £76,126. Therefore, at most, the company was entitled to a BBL of no more than £19,032 if it was adversely impacted by Covid-19.

An analysis of the company’s bank statements between 01 March 2020 and 29 July 2021 disclosed the company received receipts totalling £171,638 from which payments, totalling the same value, were made. The analysis further revealed:

Between 01 March 2020 and 28 February 2021, the company received receipts totalling £167,030. Excluding the BBL of £50,000 and JRS Grants totalling £6,208 the balance of £110,822, of which £70,109 was received from income earned from The Disqualified Director services, is comparable to the company’s previous financial year consequently the company was not impacted by Covid-19 to justify the company applying for and receiving a BBL of £50,000 or any other value.

JRS GRANTS:

To qualify for furlough pay an employee had to meet the following criteria:

Between March 2020 and June 2020 no work/furlough combination was permitted and for employees who qualified the government paid 80% of a wage up to £2,500.

Between July 2020 and August 2020 work/furlough pay combination was permitted and for employees who qualified the government paid 80% of a wage up to £2,500.

During September 2020 and October 2020 work/furlough pay combination was permitted for employees who qualified the government paid 70% of a wage up to £2,187.50 and 60% of a wage up to £1,875 respectively.

Between November 2020 and June 2021 work/furlough pay combination was permitted and for employees who qualified the government paid 80% of a wage up to £2,500.

Notwithstanding the company earned, from services provided by The Liquidated CompanyKay, sufficient income between March 2020 and September 2020 and January 2021 to February 2021 to allow the company to remunerate The Liquidated CompanyKay in full he caused the company to apply for, and receive, JRS Grants from HMRC totalling £6,793.20, for the period March 2020 to February 2021, all of which was paid to The Liquidated CompanyKay who was only entitled to receive furlough pay totalling £1,171.20 to accommodate payment of wages between October 2020 and December 2020 when the criteria was met.

Case 279 – Director disqualification for breaches of COVID loan eligibility

Director Disqualified for 7 years by Order of the Court.

The Disqualified Director caused The Liquidated Company (The Liquidated Company) to apply for a Government Backed Bounce Back Loan (BBL) of £45,000 when she knew or ought to have known that The Liquidated Company was not eligible for that loan, in that:

The Disqualified Director was a recorded director from 29 March 2019 to 17 March 2021 and was re-appointed as a director on 29 May 2021 until liquidation.

On 6 May 2020, she applied for a BBL of £45,000 stating in the online application that The Liquidated Company’s turnover was £180,000.

The BBL scheme allowed businesses affected by the Coronavirus pandemic to apply for a BBL of between £2,000 and £50,000, up to a maximum of 25% of turnover in the calendar year 2019 or if incorporated after 1 January 2019 its estimated turnover.

Total sales generated by The Liquidated Company from 9 May 2019 to 8 May 2020 were £1,310.16.

The Disqualified Director failed to provide any evidence that the estimated annual turnover of £180,000 was appropriate. Based on the available records, annual turnover was a maximum of £1,310.16. This was below the minimum turnover level of £8,000 that was required in order to obtain the minimum BBL of £2,000 and therefore The Liquidated Company was not eligible for the BBL scheme.

The Disqualified Director overstated The Liquidated Company’s turnover in the BBL application form by £178,689.84, resulting in The Liquidated Company being granted a BBL that it was not entitled to.

On 7 May 2020, £45,000 was credited to The Liquidated Company’s bank account as a result of the BBL application.

Between 15 May 2020 and 23 July 2020, The Liquidated Company, made payments totalling £31,494 of which The Disqualified Director stated were in respect of directors’ loans (£10,100), purchase of a car needed for The Liquidated Company business (£10,694), repayment of deposits incurred pre-Covid (£10,000) and reimbursement of delivery costs (£700) for which no supporting documentary evidence has been provided. Therefore it is not known whether the BBL was used for the intended purpose of providing economic benefit to The Liquidated Company.

At the date of liquidation, The Liquidated Company had nil assets and a deficiency to creditors of £50,683 including £45,000 in respect of the BBL.

Case 280 – Director disqualification for breaches of the terms of the BBL scheme

Director Disqualified for 5 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused or allowed The Liquidated Company (The Liquidated Company) to breach the terms of the Coronavirus Business Interruption Loan Scheme (CBILS), in that the company obtained a loan of £250,000 on 29 March 2021 and failed to use some of those funds to repay an existing Bounce Back Loan (BBL) of £50,000 obtained on 09 August 2020. The company subsequently entered into Creditors Voluntary Liquidation on 23 December 2021 leaving the BBL unpaid.

1. On 19 June 2020 The Banned Director caused The Liquidated Company to apply for and obtain a Government-backed Bounce Back Loan (‘BBL’) for £50,000 to which it was not entitled, by providing inaccurate information regarding The Liquidated Company’ turnover in 2019.

In addition the loan was not used for the economic benefit of the Company, in contravention of the conditions of the scheme. In that:

The Liquidated Company was incorporated on 15 September 2017 and commenced trading that month;

Accounts for the year to 30 September 2019 disclose turnover of £29,500 and bank statements show income of £24,848 for the calendar year 2019;

On 19 June 2020 The Banned Director completed an application form for a BBL of £50,000 for The Liquidated Company, stating that its turnover in 2019 had been £200,000;

The BBL was received on 22 June 2020 and was dissipated between 26 June 2020 and 06 January 2021, in payments totalling £48,600 to 2 individuals;

There is no evidence that these payments were for the economic benefit of the Company as required by the BBL scheme.

2. Between July 2020 and September 2021 The Banned Director caused The Liquidated Company to obtain grants totalling £21,981 from HM Revenue & Customs (‘HMRC’) under the Job Retention Scheme (‘JRS’) when there is no evidence that the Company had any employees other than himself or if it did, that it had furloughed its employees, or that such employees received any of the grants paid. In that:

From 10 July 2020 to 27 September 2021 The Liquidated Company received £21,981 in JRS grants for between 2 and 3 employees;

The bank statements show that almost all of the Company’s income, including the grants, was paid to The Banned Director;

Although 4 employees were notified to HMRC, none of these individuals received any payments from The Liquidated Company’ bank account and The Banned Director stated that they had been paid mainly in cash.

No payroll records have been delivered up in the liquidation, no payments for PAYE/NIC/CIS have been identified on the bank statements and HMRC have not submitted any claim in respect of the same.

No cash records have been delivered up in the liquidation and there is no evidence that anyone other than The Banned Director received the benefit of the JRS grants.

3. Insufficient records have been delivered up in the liquidation to account for cash which The Banned Director said was received and expended by The Liquidated Company. In that:

The records delivered up to the liquidator do not contain any documents after September 2019;

The Banned Director stated that the customers of a new relocation business had paid in cash and this was used to pay support workers;

He also said that the Company employees were paid in cash;

No cash records have been produced and it is therefore not possible to verify that cash was received, if any cash is due to The Liquidated Company at liquidation or to establish how any cash was disbursed.

There are no cash transactions listed on the company bank statements.

Case 281 – Director disqualification for overstating turnover on a BBL application

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director breached the terms of the Bounce Back Loans Scheme by causing or allowing The Liquidated Company by The Liquidated Company to overstate its turnover on its application for a ‘Bounce Back Loan’ (BBL) resulting in the company receiving a BBL of £50,000 when she knew or ought to have known that The Liquidated Company by The Liquidated Company was only eligible for a loan to a maximum value of £5,648.25 in that:

 The BBL scheme rules allowed businesses to receive a loan of up to 25% of their annual turnover for the 2019 calendar year, which those businesses would self-certify when completing the BBL application

 The Liquidated Company by The Liquidated Company was incorporated on 27 July 2018.

 In The Disqualified Director’s response to an Insolvency Service questionnaire signed 11 August 2022, she confirmed The Liquidated Company by The Disqualified Director The Liquidated Company started trading on 01 September 2018. This was later confirmed again in her response to follow up questions received on 25 August 2022.

 The company’s bank account shows The Liquidated Company by The Liquidated Company received a total of £22,593 between 03 January 2019 and 11 December 2019. Of this, £21,650 consisted of funds received due to a loan agreement the company entered into with a third party.

 The Disqualified Director declared on the company’s BBL application form an estimated annual turnover of at least £200,000, and consequently on 20 May 2020 the company received £50,000, the maximum loan amount possible under the ‘Bounce Back Loan’ scheme.

 At liquidation £50,102.73 was owed to a Bank in respect of the BBL.

Case 282 – Director disqualification for breaches of the conditions of a Bounce Back Loan

Director Disqualified for 9 years by a signed undertaking of the director.

On 10 May 2020 I caused The Liquidated Company to apply for a Government Backed Bounce Back Loan (BBL) of £30,000 when I ought to have known that The Liquidated Company was not eligible for the full amount of the BBL. Between 18 May 2020 and 1 September 2020, I caused The Liquidated Company to utilise at least £7,569 of the BBL funds for personal use. The BBL funds were provided with the express intention of providing economic benefit to The Liquidated Company’s business and I breached those terms and removed funds for the benefit of myself, in that:

The BBL scheme allowed businesses affected by the Coronavirus pandemic to apply for a government backed loan of between £2,000 and £50,000, up to a maximum of 25% of turnover for the calendar year of 2019.

On 10 May 2020 I applied for a BBL on behalf of The Liquidated Company. In the application form, I declared that The Liquidated Company’s annual turnover in the calendar year of 2019 was £120,000 and that the £30,000 BBL applied for was equal to or less than 25% of annual turnover for the calendar year of 2019.

The Liquidated Company’s financial accounts for the period covering 1 January to 31 March 2019 show turnover of £20,000. Financial accounts for the year ended 31 March 2020 show turnover of £30,885, meaning the maximum turnover for the calendar year 2019 was £50,885, which would have allowed for a BBL of at most £12,721. This was significantly below the turnover level of £120,000 that was required to obtain the BBL of £30,000 and so The Liquidated Company was not entitled to the full BBL sought.

On 18 May 2020, £30,000 was paid in to The Liquidated Company’s bank account as a result of the BBL application, making the balance on The Liquidated Company’s bank account £42,997. A further £26,498 was paid in from other sources after this date

Between 18 May 2020 and 1 September 2020 payments from The Liquidated Company’s bank account totalling £69,367 were made, of which £46,935 were made to various bank accounts for my benefit and/or my partner’s benefit. At least £7,569 of the £30,000 BBL funds were utilised to make these payments.

The Liquidated Company ceased trading on 31 December 2020 and on 2 March 2021 The Liquidated Company entered into creditors voluntary liquidation. At the date of the liquidation The Liquidated Company had assets of £2,000, liabilities of at least £30,000, and a deficiency to creditors of at least £28,000.

The Liquidator has reconciled the outstanding Directors Loan Account and advised that I have agreed to repay £31,913 payable in monthly instalments of £650 for a period of 49 months in full and final settlement of claims against me as director.

Case 283 – Director disqualification for applying for a BBL for a non-trading company

Director Disqualified for 2 years by a signed undertaking of the director.

On or around 14 August 2020 The Banned Director (The Banned Director) caused The Insolvent Company to falsely apply for a Bounce Back Loan (BBL) when it was not actively trading and overstated the turnover of the company to enable it to apply for the maximum loan amount of £50,000. Furthermore, The Banned Director also caused The Insolvent Company to breach the terms of the BBL scheme by failing to use the BBL funds for the economic benefit of The Insolvent Company. In that:

 Under the BBL scheme, businesses were able to apply for a BBL if they were carrying on business on 01 March 2020 and had been adversely affected by Covid. The criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25% of the company’s turnover. The funds could only be used to provide economic benefit to the company and not for personal purposes.

 The Insolvent Company ceased trading on 15 November 2019. Bank records show that between 15 November 2019 and 22 April 2020 there was no trading income. Profit & Loss accounts prepared for the company for the period 5 November 2018 to 5 November 2019 record a turnover of £56,667.

 On or around 14 August, The Insolvent Company applied for a BBL of £50,000. On the application, The Banned Director stated the company turnover for 2019 was £350,000. The £50,000 BBL funds were paid into The Insolvent Company’s bank account on 18 August 2020.

 On 19 August 2020, £15,000 was transferred out of The Insolvent Company’s bank account to The Banned Director and £25,000 was transferred to connected companies. On 2 October 2020 a further £10,000 was transferred to a connected company. Therefore, the BBL was not used for the economic benefit of No 1 Carpet.

Trade Checkers Ltd

Between 7 May 2020 and 11 May 2020 The Banned Director caused The Insolvent Company to apply for a Bounce Back Loan (BBL) of £50,000 and breach the terms of the BBL scheme by failing to use £35,000 of the funds for the economic benefit of the company. In that:

 Under the BBL scheme, funds could only be used to provide economic benefit to the company.

The Insolvent Company applied for the BBL on 5 May 2020 and received £50,000 on 7 May 2020.

 On 11 May 2020 £35,000 was transferred to a family member of The Banned Director. The Banned Director has failed to provide any evidence that this transaction was for the benefit of The Insolvent Company.

 Therefore, these funds were not used for the economic benefit of The Insolvent Company

Case 284 – Director disqualification for making false representations on a Bounce Back Loan application

Director Disqualified for 10 years by a signed undertaking of the director.

On 9 July 2020 and 21 August 2020 The Disqualified Director Mohammed Farad (The Disqualified Director) caused The Liquidated Company (MEK) to make false representations about the company’s turnover in two separate applications for Government backed Bounce Back Loans (BBL) totalling £50,000 which the company was not entitled to apply for and failed to use the BBL funds for the economic benefit of the company, in that:

 Under the Bounce Back Loan scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of 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 turnover. To be eligible, businesses were required to be engaged in trading or commercial activity in the UK at the date of the application, carrying on business on 1 March 2020 and be adversely impacted by coronavirus. Only one loan was available to businesses.

 MEK was incorporated on 10 April 2019.

 Financial accounts for year ending 30 April 2020 show no trading activity took place.

 The company bank accounts show that transactions commenced in July 2020.

 He made a BBL application of £25,000 on behalf of MEK on 9 July 2020 declaring that the company was carrying on business on 1 March 2020, its turnover was £100,000 and at the time the application was made, MEK was engaged in trading or commercial activity and was adversely impacted by Covid 19.

 On 10 July 2020 the first bounce back loan funds of £25,000 were credited to the company bank account.

 Within 18 days of the BBL funds being received by MEK payments totalling £13,331 were made to him, and further payments of £1,811 were made that did not provide economic benefit to MEK

 He made a second BBL application of £25,000 on behalf of MEK on 21 August 2020 declaring that the company turnover was £100,000, it was carrying on business on 1 March 2020,at the time the application was made MEK was engaged in trading or commercial activity, was adversely impacted by Covid 19 and had not obtained any other BBL.

 On 25 August 2020 the second bounce back loan funds of £25,000 were credited to the company bank account.

 Between 25 August 2020 to 30 November 2021, payments totalling £15,249 were made to him.

 Total liabilities at liquidation amount to £60,283 which include debts of £50,000 in respect of BBL, £10,000 to him and £283 to trade expenses.

Case 285 – Director disqualification for misuse of BBL funds

Director Disqualified for 10 years by an undertaking agreed by the director.

Between 5th November 2020 and 7th November 2020, The Banned Director caused The Insolvent Company to make payments totalling £27,000 that was to the benefit of himself and to the detriment of The Insolvent Company creditors generally, at a time when he knew, or ought to have known, that The Insolvent Company was insolvent, in that:

On 19th May 2020, the sum of £30,000 was paid into The Insolvent Company bank account being the proceeds of a Bounce Back Loan (BBL) Prior to receipt of the BBL the account balance was £Nil.

On 5th November 2020, The Banned Director sought advice from an Insolvency Practitioner and instructed them to take the necessary steps to place The Insolvent Company into liquidation.

On 5th November 2020, the account balance was £27,250 and The Banned Director transferred £13,500 of this sum to an associated company and £2,500 to himself as wages.

A further £11,000 was transferred to himself as wages on the 7th November 2020.

The company entered into liquidation on 18th December 2020, with liabilities totalling £34,968.

Case 286 – Director disqualification for breaches of the terms of application of the BBL scheme

Director Disqualified for 4 years by Court Order.

The Disqualified Director (The Disqualified Director) caused R&K Contracting The Liquidated Company (R&K) to apply for and obtain a Bounce Back Loan (BBL) of £50,000 using an overstated turnover figure in the application form. Consequently, the company received £33,720 more than it was entitled to from the BBL scheme. The Disqualified Director also utilised at least £15,504 of the BBL funds for his own personal benefit contrary to the terms of the BBL scheme. In that:

The Disqualified Director caused R&K to apply for a BBL of £50,000 on 10 November 2020.

The Disqualified Director declared that R&K’s turnover was £200,000 within the BBL application, when in fact R&K’s turnover for the calendar year 2019 was only £65,120. R&K’s year-end accounts to 30 November 2019 stated its turnover as £58,620. Company bank statements show £6,500 credited into the account between 1 December 2019 to 31 December 2019 resulting in a total turnover of £65,120 in the relevant period.

The Disqualified Director signed R&K’s 30 November 2019 accounts on 20 January 2020.

A company was entitled to apply for a BBL of up to 25% of its 2019 turnover under the BBL scheme.

The Company’s turnover was insufficient to be eligible to receive a BBL in the sum of £50,000. Turnover of £65,120 would have allowed for a BBL of £16,280.

On 12 November 2020 £50,000 was received into R&K’s bank account being the proceeds of the BBL.

On 1 June 2021 £7,500 was paid to a 3rd party and on 3 June 2021 a further £8,004 was paid to the same 3rd party. The Disqualified Director has not provided any documentary evidence to show that these payments were for the economic benefit of the company.

Case 287 – Director disqualification for false applications to the BBL scheme

Director Disqualified for 9 years by a director signed undertaking.

The Disqualified Director (‘The Disqualified Director’) caused The Liquidated Company (‘The Liquidated Company’) to apply for and obtain a Government-backed Bounce Back Loan (‘BBL’) of £32,000, to which it was not entitled, by providing false or knowingly inaccurate information regarding its trading and turnover. In addition the proceeds of the loan were paid in full to him and were not used for the economic benefit of the Company, contrary to the terms of the loan scheme. In that:

Obtaining the BBL

 The Liquidated Company was incorporated on 28 October 2019;

 The only income received was a total of £5,775 paid into the account between January and April 2020;

 Notwithstanding this income, dormant accounts were filed, on 15 December 2020, for the period ended 31 October 2020;

 A BBL application was made by The Liquidated Company in which it self-certified that it was trading on 01 March 2020;

 A BBL of £32,000 was paid into the Company’s bank account on 09 November 2020, which would have required turnover of £128,000 in the calendar year 2019.

Disbursal of the BBL

 A transfer of £32,000 was made to him on 24 November 2020;

 No further receipts or payments were shown on the bank account until 26 May 2021 when £30 was paid into the account to settle commission and interest charges;

 The Liquidated Company ceased trading in February 2021 and entered liquidation on 17 November 2021;

 The only creditor at the liquidation date was the bank for the BBL.

Case 288 – Director disqualification for breaches of BBL eligibility

Director Disqualified for 9 years by Order of the Court.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to breach the conditions of the Bounce Back Loan (BBL) Scheme by overstating annual turnover in order to obtain a larger loan of £50,000, when he knew or ought to have known that LC was only eligible for a loan to a maximum value of £18,407, based on turnover shown in LC end of year accounts for the period ended 31 August 2019.

On 08 May 2020 The Banned Director caused The Liquidated Company to provide misleading information to a bank, to obtain a Bounce Back Loan (BBL) of £35,000 when she knew or ought to have known that The Liquidated Company was eligible for a maximum BBL of £11,016. In that:

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 turnover. The turnover figure was self-certified by the applicant. The turnover figure required for a business established before 01 January 2019 was that for the calendar year of 2019.

The Liquidated Company was incorporated on 02 September 2018.

Between 01 January 2019 and 31 December 2019, sales income into the company’s bank account totalled £44,062.

On 08 May 2020 The Liquidated Company applied to its bank for a BBL for £35,000 following self-declaration by The Banned Director of turnover of £154,500 on the BBL application, when the company was entitled to a maximum BBL of £11,016 based on trading income received during 2019.

On 09 May 2020, The Liquidated Company received £35,000 in respect of the BBL.

The Banned Director caused The Liquidated Company to breach Section 1004 of the Companies Act in that:

Under Section 1004 of the Companies Act an application to strike off a The Liquidated Company may not be made, if, at any time in the previous three months, the company has traded or otherwise carried on business;

On 13 July 2020 a notice DS01 striking off application was signed by The Banned Director and filed at Companies House on 16 July 2020.

Case 289 – Director disqualification for flase information on a BBL application

Director Disqualified for 10 years by an undertaking agreed by the director.

In June 2020, The Disqualified Director caused The Liquidated Company (The Liquidated Company) to apply for a Bounce Back Loan (BBL) of £50,000 using false or inaccurate information in the BBL application form, when he knew or ought to have known that The Liquidated Company was not eligible for the loan. Consequently, The Liquidated Company, received funds it was not entitled to from the BBL scheme. In addition the BBL funds were not used in their entirety for the economic benefit of the The Liquidated Company’s business contrary to the terms of the BBL scheme but were used to make payments to The Disqualified Director or for his benefit. In that:

Turnover & Trading

In June 2020, The Liquidated Company applied for a BBL in the sum of £50,000.

Businesses could apply for a BBL of up to 25% of their turnover for the calendar year 2019 with the maximum loan available under the BBL Scheme being £50,000.

Therefore to be eligible for a BBL of £50,000 The Liquidated Company’s turnover was required to be at least £200,000.

Since The Liquidated Company started trading, it was subcontracted to two companies.

The Liquidated Company’s bank statements records that of total credits in the sum of £105,610.64 received during calendar year 2019, income in the sum of £85,511.75 was received from the 2 companies.

The accounts for the 15 month period from 01 November 2018 to 31 January 2020 record that The Liquidated Company achieved a turnover of £106,334.

As part of the BBL application, The Disqualified Director was required to declare that the business was carrying on its business on 1 March 2020, that I/we were engaged in trading or commercial activity in the United Kingdom as at the date if this application ignoring any temporary cessation due to Covid-19, and the business has been adversely impacted by COVID-19.

The Liquidated Company’s bank statements record that final income payment was received on 31 January 2020 and no further income was received after this time.

The Liquidated Company’s accountants confirm that the final accounting period was extended from 31 October 2019 to 31 January 2020 so that all trading could be captured in one final set of accounts. They state that The Disqualified Director informed them that The Liquidated Company had ceased to trade as at 31 January 2020.

The Disqualified Director has provided copies of self-employed contractor payslip stubs relating to cash payments purportedly made to subcontractors during the months February 2020, and June 2020 to March 2021. However, it has not been possible to verify these cash payments to subcontractors during this period from the available Company records (including bank statements).

Consequently, The Liquidated Company appears not to have been engaged in trading or commercial activity as at 01 March 2020 or as at the date of the BBL application in June 2020. Further the maximum BBL for which the company would have qualified (assuming all other requirements were met) was £21,377.

Use of funds

On 08 June 2020 the sum of £50,000 was paid into The Liquidated Company’s bank account being the BBL funds. The BBL funds could only be used to provide economic benefit to the company and not for personal purposes.

On the same day, the sum of £10,000 was transferred to The Disqualified Director personally.

On 11 June 2020, a further payment was made from The Liquidated Company’s bank account to The Disqualified Director in the sum of £10,000.

The Disqualified Director claims that of these funds in the total sum of £20,000, £12,500 was used to repay money borrowed from a connected party and £3,410 was used by him in respect of catch up living costs. He claims that the balance of £4,360 was used to pay subcontractor wages.

On 25 August 2020, a lump sum payment in the sum of £6,000 was paid to The Disqualified Director from The Liquidated Company’s bank account. The Disqualified Director claims that, of this sum £5,136 was used to pay subcontractors wages and £1,864 was used by him in respect of personal expenses.

Between 08 June 2020 and 12 March 2021, The Disqualified Director received payments totalling £37,065 from The Liquidated Company.

A payment was also made with reference H&A Cars on 08 June 2020 in the sum of £5,000 relating to the purchase of a Volkswagen Transporter van.

A further payment was also made with reference Fresh Air Concept on 12 June 2020 in the sum of £2,379.64 which The Disqualified Director claims relates to a bathroom refit. The corresponding invoice provided to the liquidator by The Disqualified Director is made out to Fresh Air Plumbing Heating & Air. However, the contact details on this invoice relate a company called NW Plumbing & Gas. Internet search results indicate Fresh Air is an outdoor adventure sports retailer based in Canada. The Disqualified Director was visiting Canada at that time.

Therefore the purpose of these payments remains unclear and it has not been possible to establish that the BBL funds were used in their entirely for the benefit of The Liquidated Company given that Company records indicate that it ceased trading on 31 January 2020 and that the funds were paid to The Disqualified Director’ personal bank account.

This information is correct as at 30 / 7 / 2022

Case 290 – Director disqualification for breaches of the terms of use of Bounce Back Loan funds

Director Disqualified for 9 years by a signed undertaking of the director.

The Disqualified Director (DD) caused The Liquidated Company Limited (LC) to obtain a Government backed Bounce Back Loan (BBL) totalling £50,000 and failed to ensure all these funds were used for the economic benefit of LC business which was a breach of the terms of the BBL. In that: –

On 5 May 2020, LC applied for a BBL in the sum of £50,000.

On 7 May 2020, £50,000 was received into LC bank account.

Between 7 May 2020 to 29 May 2020 a total of £46,095 was paid to 3rd parties of which at least £16,515 was for the personal benefit of and £29,580 was in respect of failed investments.

There was no benefit to LC from these payments.

No payments have been identified as having been made by LC to repay the BBL.

LC BBL of £50,000 remained outstanding at Liquidation.

Case 291 – Director disqualification for using a Bounce Back Loan for personal benefit

Director Disqualified for 8 years by an undertaking agreed by the director.

On 19 May 2020 The Disqualified Director provided misleading information to make a Bounce back loan (BBL) application by making an unsupported claim of estimated annual turnover of £250,000. Based on financial accounts for year ending December 2019, showing a turnover figure of £50,093, the company would have been due a Bounce back loan / BBL of at most £12,523.

The Disqualified Director personally benefitted by £22,000 of the £50,000 BBL which did not provide economic benefit to The Liquidated Company, in breach of the terms and conditions of the BBL conditions.

Under the Bounce Back Loan scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of 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 turnover.

The Liquidated Company was incorporated on 17 December 2014

Financial accounts for year ending 31 December 2019 show turnover of £50,093 which would qualify the company for a Bounce back loan / BBL loan of at most, £12,523.

On 19 May 2020 The Disqualified Director applied for a bounce back loan of £50,000 on behalf of The Liquidated Company declaring that the future turnover for the next 12 month period was estimated to be £250,000.

The Liquidated Company received the BBL funds of £50,000 on 21 May 2020.

On 21 May 2020 payments totalling £22,000 were made for the benefit of The Disqualified Director and not for the economic benefit of The Liquidated Company.

At liquidation The Liquidated Company had declared liabilities of £51,087 of which £50,000 is in respect of the BBL.

Case 292 – Director disqualification for breaches of the terms of the Bounce Back Loan scheme

Director Disqualified for 5 years by a signed undertaking of the director.

On 17 May 2020 The Disqualified Director caused The Liquidated Company (the Company) to obtain a government backed Bounce Back Loan (BBL) totalling £50,000 by submitting false or knowingly inaccurate information. Thereafter, in breach of the BBL scheme, The Disqualified Director failed to use the BBL for the economic benefit of the business by transferring it to his personal bank account. In that:

On 17 May 2020 The Disqualified Director submitted an application to the bank for a BBL in the sum of £50,000.

Within the BBL application The Disqualified Director declared that the Company’s estimated turnover was £200,000.

Financial statements prepared by the Company’s accountants for the years ended 31 May 2018 and 2019 show that the turnover in those years was £35,591 and £10,315 respectively.

Within the BBL application The Disqualified Director declared that the Company was not insolvent or otherwise in difficulty on 31 December 2019.

In his questionnaire dated 11 November 2021 The Disqualified Director stated that the Company was suffering with low or negative profits, and that the Company was already in loss from 2019 to 2021.

Within the BBL application The Disqualified Director declared that the BBL would not (in whole or in part) be used to support export related activities.

In The Disqualified Director’s questionnaire dated 11 November 2021 he stated that the BBL was to be used to rebuild the Company as he had decided to import and export carpets and rugs.

On 19 May 2020 the sum of £50,000, being the BBL, was paid into the Company’s bank account. Prior to receipt of the loan the account balance was overdrawn in the sum of £45.02.

On 19 May 2020 The Disqualified Director transferred the sum of £47,500 into his personal bank account.

The Disqualified Director states that the £47,500 was given in cash to a friend who was visiting from Pakistan so that he could take the cash to The Disqualified Director’s cousin in Pakistan to buy rugs and carpets and that The Disqualified Director has no proof of this money transfer.

At liquidation on 13 April 2021, the Company’s only creditor was the bank for £50,000 for the BBL, which remains unpaid.

Case 293 – Director disqualification for breaches of the use of funds of the BBL scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director (DD), caused The Liquidated Company (the company) to apply for and receive a Bounce Back Loan (BBL) of £16,200 and a top up BBL of £1,300 following which he failed to ensure that funds totalling £16,550 were used for the economic benefit of the company, in that:

On 18 December 2020 £16,200 was introduced into the company by way of a BBL which was granted for the economic benefit of the company. On the same day £15,200 was transferred from the company bank account for the personal benefit of DD.

On 06 January 2021 £1,300 was introduced into the company by way of a BBL top up loan which was also granted for the economic benefit of the company. On the same day £1,350 was transferred from the company bank account for the personal benefit of DD.

On 22 April 2021 DD placed the company into Creditors Voluntary Liquidation with a deficiency of £17,500 owed to the bank, the company’s only creditor, in respect of the BBL.

Case 293 – Director disqualification for breaches of the terms of the Bounce Back Loan scheme

Director Disqualified for 9 years by Order of the Court.

In her capacity as a director of The Liquidated Company, The Disqualified Director caused or allowed The Liquidated Company to make an application for a Government-backed Bounce Back Loan (BBL) of £50,000, when she knew or ought to have known the company was not eligible for the full amount of the BBL, in that:

She caused or allowed The Liquidated Company to overstate its turnover on its application for the BBL

The BBL scheme rules allowed businesses to receive a loan of up to 25% of their annual turnover, which businesses would self-certify when completing the BBL application

No company accounts, including management accounts, have been provided to confirm the company’s turnover

An analysis of the bank statements for the company’s bank account for the period 17 January 2019 to 16 January 2020 shows income into the account of £80,969.34

However, the BBL application form gives the annual turnover as in excess of £200,000, when the figure should have been £120,000 and consequently the company received £50,000 on 12 May 2020. The application form is stated to be signed by The Disqualified Director, as Directors, and the applicant details include The Disqualified Director’s personal mobile phone number and her husband’s email address

Case 294 – Director disqualification for multiple breaches of the terms of the BBL scheme

Director Disqualified for 5 years by a signed undertaking of the director.

On 15 June 2020, The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to apply for a Bounce Back Loan (BBL) of £50,000, when he knew or ought to have known that The Liquidated Company was not eligible for at least £30,043 of the loan, and between 17 June 2020 and 27 August 2020 failed to use the funds in their entirety for the economic benefit of the company as follows:

During the Covid-19 pandemic, the Government backed loans to limited companies to assist them through a difficult and uncertain period. The BBL terms and conditions stipulated that the loan would be between £2,000 and £50,000 and no more that 25% of the company’s 2019 turnover. and that the funds should be used for the benefit of the business and not for personal purposes.

Accounts prepared for The Liquidated Company dated 30 April 2019 and 30 April 2020, show the company turnover was £79,827 and £67,243. These accounts were signed by The Disqualified Director on 9 January 2020 and 13 August 2020 respectively.

On 15 June 2020, The Liquidated Company applied for a Bounce Back Loan (BBL) of £50,000 with a stated turnover of £207,570.

On 17 June 2020, £50,000 BBL funds were paid into The Liquidated Company’s bank account and the bank account stood at £54,605

Between 17 June 2020 and 27 August 2020 the bank balance fell to £1,040, the BBL having been utilised in full. The expenditure in this period included one £10,000 payment made direct to The Disqualified Director, nine £3,000 debit payments and one £1,000 debit payment made from the bank account to an unknown recipient and £16,800 withdrawn in cash in round sum amounts.

The Disqualified Director has failed to evidence satisfactorily that any of these funds were utilised for the economic benefit of The Liquidated Company.

At the date of liquidation, The Liquidated Company had liabilities of £51,410 consisting of £1,410 Directors Loan and £50,000 Bank (BBL).

Case 295 – Director disqualification for breaches of the terms of the Bounce Back Loan scheme

Director Disqualified for 6 years by an undertaking agreed by the director.

On 4 May 2020 The Disqualified Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) of £36,000 which was in breach of BBL terms by using overstated turnover figures in the BBL loan application form. Consequently, The Liquidated Company received more monies than it was entitled to from the BBL scheme. From the loan proceeds received, he used £25,295 of those monies for his own personal benefit and which was not for the economic benefit of The Liquidated Company. In that:

 On 4 May 2020 DTS obtained a BBL of £36,000 despite its turnover for the year to 30 June 2019 totalling only £54,114.

 BBL application show that he stated that the company’s turnover was £152,000.

 He stated that The Liquidated Company turnover for the calendar year 2019 was £102,590 but no evidence of this was provided. A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019

 The terms of the BBL stated that its intended purpose was to provide economic benefit to the business and not for personal purposes. Having received the BBL of £36,000 on 14 May 2020, and on the same day he paid a relative £16,696 and also paid £8,599 for his personal benefit between 14 May 2020 and 16 June 2020 .

 The Liquidated Company ceased trading on 26 April 2021 and on 19 May 2021 it entered into creditors’ voluntary liquidation with assets of £1,950 and liabilities of £50,997 including £37,878 which is owed to in respect of the BBL and he stated as being owed £1,204.

Case 296 – Director disqualification for misapplication and misuse of Bounce Back Loan funds

Director Disqualified for 5 years by a director signed undertaking.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to breach the terms and conditions of the Bounce Back Loan Scheme (BBL) by applying for a BBL of £50,000 when he knew or ought to have known that LC was not eligible for the loan. The full sum received was paid out for the personal benefit of him, which was contrary to the conditions for the use of a BBL. In that: –

 The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (with a maximum loan of £50,000), for the purpose of a business carried on or intended to be carried on by the applicant.

 LC Profit & Loss Account for the period 1 April 2019 to 31 March 2020 shows that it had NIL turnover during the period.

 On 16 June 2020 he applied for a BBL of £50,000 for Charlie stating the estimated turnover as £210,000.

 On 18 June 2020, BBL funds of £50,000 were paid into LC bank account.

 On 22 June 2020 the £50,000 received in respect of the BBL was transferred to his personal bank account.

 At the date of the Liquidation on 11 August 2021, a total of £52,523 was owed to creditors, of which £50,023 was owed to the bank and £2,500 to a trade creditor.

Case 297 – Director disqualification for breaches of the terms of use of Bounce Back Loan funds

Director Disqualified for 6 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to obtain a Bounce Back Loan (BBL) totalling £45,000 which it was not entitled to, and failed to ensure the funds were used for the economic benefit of LC in breach of the terms and conditions of the BBL, in that:

Companies incorporated before 01 January 2019 could apply for a loan of up to 25% of turnover in the calendar year 2019, from a minimum of £2,000 up to maximum of £50,000. If the company was incorporated after 01 January 2019, then an estimated annual turnover could be used by the applicant.

Companies which were not actively trading on or before 01 March 2020 were not permitted to access the BBL scheme.

LC was incorporated on 30 March 2020.

Between the opening of SJSA’s bank account 17 April 2020 and 25 June 2020, LC received funds totalling £5,529.

On 25 June 2020, The Disqualified Director made an application for a £45,000 BBL on behalf of LC. In that application, The Disqualified Director declared LC had annual turnover of £180,000.

LC received a BBL of £45,000 into its bank account on 06 July 2020, resulting in a balance of £46,804 in credit.

Between 06 July 2020 and 10 July 2020, LC paid £35,000 to The Disqualified Director.

On 08 July 2020, LC paid £10,000 to a member of The Disqualified Director’s family.

Between receiving the BBL on 06 July 2020 and 10 July 2020, LC received further funds of £275.

At liquidation LC had declared liabilities of £45,000, the entirety of which is owed in respect of the unpaid BBL.

Case 298 – Director disqualification for multiple breaches of the terms and conditions of the BBL scheme

Director Disqualified for 9 years by Order of the Court.

On 5 May 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to make a false application for a Bounce Back Loan (BBL) of £25,000 in breach of the terms of the scheme, in that:

 Bounce Back Loans between £2,000 and 25% annual turnover (up to a maximum of £50,000) were made available from 5 May 2020;

 Accounts approved by him for years ended 31 January 2019 & 2020 show turnover of £1,195 & £2,488 respectively so The Liquidated Company would have been entitled to a maximum loan of £2,000;

 He knew or ought to have known that the turnover information supplied to support The Liquidated Company’s loan application was false.

Furthermore, he caused The Liquidated Company to supply a falsified invoice to the liquidator to explain a payment of £20,000 from the BBL funds made to a 3rd party:

 On 30 July 2020 £20,000 was paid from The Liquidated Company’s bank account to a 3rd party with the initial payment reference Car on the bank statements;

 On 22 September 2022, he emailed a copy invoice to the liquidator purportedly from a 3rd party to The Liquidated Company in respect of a business expense which appears to have been falsified.

 The payment of £20,000 does not appear to have been for the economic benefit of The Liquidated Company, and as such, was made contrary to the terms of the BBL scheme.

Case 299 – Director disqualification for not using BBL funds to the benefit of the company

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to apply for a Bounce Back Loan (BBL) of £50,000 to which it was not entitled to and failed to show whether it was for the economic benefit of the company, in that:

 A business could apply for a BBL of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019. 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 turnover. Businesses were required to use the loan only to provide economic benefit to the business, and not for personal purposes

 LC was incorporated on 08 January 2020, however it did not commence trading until February 2020 and had no bank account until June 2020.

 On 16 June 2020, he declared within the BBL application that LC had achieved annual (or estimated) turnover of £250,000 in the calendar year 2019.

 The first transaction into LC bank account was the BBL of £50,000 on 18 June 2020.

 Following receipt of the £50,000 BBL LC disbursed funds totalling £50,008 between 22 June 2020 and 24 August 2020 of which £16,000 was withdrawn for cash. The balance of £34,208 was paid to trade and expense suppliers.

 He was unable to provide evidence that these transactions were used for the benefit of the company.

 Between 19 July 2021 and 18 October 2021 LC made 4 repayments totalling £3,549 towards the BBL. On 02 December 2021 he in the absence of assets, placed LC into Creditors Voluntary Liquidation with a deficiency of £59,951 of which £46,735 is owed to the bank in respect of the BBL. The balance of £13,216 is owed to the local council in respect of unpaid non-domestic rates.

The Disqualified Director (The Disqualified Director) caused The Insolvent Company (IC) to breach the terms of the Bounce Bank Loan (BBL) scheme by overstating IC turnover in order to obtain BBL funds of £50,000 when IC was entitled to a maximum of £24,583

 A business could apply for a BBL of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019. 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 turnover.

 IC financial statements for the year ending 31 December 2019 shows a turnover of £98,332. Based on this turnover, IC was eligible to borrow a maximum of £24,583.

 He applied for a BBL of £50,000 on behalf of the company, stating in the loan application that NAZ’s turnover for 2019 was £200,000.

 As a consequence, of his overstating the turnover, IC received a BBL of £50,000 which gave IC the benefit of £25,417 that it was not entitled to.

 On 27 January 2022 he placed IC into Creditors Voluntary Liquidations with a deficiency of £46,667 owed to the bank, IC only creditor, in respect of the BBL.

Case 300 – Director disqualification for using inaccurate information on a Bounce Back Loan application

Director Disqualified for X years by a signed undertaking of the director.

In June 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to obtain a £50,000 government backed bounce back loan (BBL) when the company was not eligible for a loan of that amount by providing information to the lender which he knew or ought to have known was inaccurate

In that;

 In the BBL application dated the 2 June 2020 which was signed electronically by him stated that the annual turnover of the company was £200,000

 Company accounts made up to the 29 February 2020 show that the annual turnover of LC was £26,200. The BBL scheme allowed businesses to borrow up to 25% of their annual turnover. Therefore, the maximum amount that LC was entitled to borrow was £6,550

 At liquidation on 14 July 2021, the £50,000 BBL remained outstanding.

Case 301 – Director disqualification for breaches of the terms of use of funds of the BBL scheme

Director Disqualified for 9 years by Court Order.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to obtain a Bounce Back Loan (BBL) totalling £50,000 and did not use £36,400 of the funds for the economic benefit of the business, contrary to the terms of the scheme in that:

Within the BBL application, The Disqualified Director declared that the BBL would be used to provide economic benefit to the business and would be used wholly for business purposes and not personal purposes.

On 18 May 2020, the company received Bounce Back Loan (BBL) funds in the sum of £50,000. The funds were transferred to The Disqualified Director on the next day.

Between 22 May 2020 and 1 September 2020 The Disqualified Director repaid £13,600 to the company bank account.

At the date of liquidation, none of the BBL had been repaid and creditors were owed in excess of £690,000.

The Disqualified Director has not provided any records to the Liquidator to evidence that the BBL funds were used for the economic benefit of The Liquidated Company.

Case 302 – Director disqualification for non-repayment of a Bounce Back Loan

Director Disqualified for 8 years by a signed undertaking of the director.

The Banned Director caused The Insolvent Company to apply for a Bounce Back Loan of £50,000 at a time when he knew or ought to have known that The Insolvent Company was not eligible to apply for the loan and would not be able to repay the money received, in that:

The Insolvent Company accountant raised concerns about the company’s solvency following the preparation of the 31 March 2018 year end accounts which showed a loss of £74,527. The accounts were signed by the directors on 19 March 2019.

On 06 December 2019, an HMRC enforcement agent entered The Insolvent Company’ trade premises and seized control of company vehicles and stock in respect of outstanding tax liabilities of £146,272 owed by The Insolvent Company.

On 31 January 2020, The Insolvent Company and its directors were issued a Notice of Requirement by HMRC to provide security of £65,374 in respect of PAYE & NIC and £150,939 in respect of VAT.

Eligibility for the BBL required confirmation that a business was engaged in trading at the date of the application. In April 2020 The Insolvent Company ceased to trade its employees and assets transferred to a connected company. Therefore as The Insolvent Company was not trading at the date of the application, it did not meet the self-certified eligibility criteria.

On 24 June 2020, a credit provider invited The Insolvent Company to apply for a Bounce Back Loan (BBL) to repay an existing credit card debt it was owed by The Insolvent Company and which was personally guaranteed by The Banned Director.

On 25 June, The Insolvent Company applied for a BBL of £50,000. On the application form, completed by The Banned Director, The Banned Director stated The Insolvent Company had been adversely impacted by Covid-19 and had not been in any financial difficulty as at December 2019 and was engaged in trading.

On 30 June 2020, The Insolvent Company received a BBL of £50,000. £32,000 of the loan money was automatically used to clear credit card debt owed to the loan provider. The remaining loan monies were paid into The Banned Director’ personal account and later transferred to The Insolvent Company’ account.

Case 303 – Director disqualification for breaches of the terms of application and use of funds of the bounce back loan

Director Disqualified for 5 years by an undertaking agreed by the director.

The Disqualified Director caused or allowed The Liquidated Company to apply for a Bounce Back Loan (BBL) of £17,500, on behalf of The Liquidated Company, when she knew or ought to have known that The Liquidated Company failed to be eligible for the loan, and subsequently, caused The Liquidated Company to misuse the funds:

The BBL criteria included:

 that the applicant must be trading in the UK at the date of the application.

 that the applicant must use the funds to provide economic benefit.

 that the funds must not be used for personal benefit.

 That the applicant be able and intend to complete timely repayments.

On 30 October 2020 The Liquidated Company applied for a BBL declaring a Turnover of £75,000 in the application. In the absence of any Accounts since the date of incorporation on 15 July 2019, Insolvency Service (IS) carried out a bank analysis of the 2 company accounts, which disclosed the following:

 In bank account A, which was opened on 3 June 2020, the total income received into the bank account, to the date of liquidation was £17,902, which was mainly made up of the 3 small payment after opening, totalling £110, paid in from a co-director, the BBL payment (£17,500) , and £292 from BBL interest rebates. Therefore this demonstrates there was no trading income to be included in a turnover figure.

 In bank account B, which was opened on incorporation, the total income for the period from 15 July 2019 to July 2020 was £26,186.

 Turnover was therefore overstated.

The company’s sole income was from a company based in Kilmarnock, which closed down in March 2020, with no employees retained.

The income was paid through a recruitment agency and the bank analysis carried out by IS, for the period from 1 March 2020 discloses that the company received 11 income payments totalling £11,501 in the period from 1 January 2020 to the date of the last income payment on 3 July 2020. This agency has confirmed that the company was engaged for the period from July 2019 to 6 March 2020, and that the payments made between 6 March 2020 and 3 July 2020 related to hours missed in the final timesheet and back-dated VAT. This demonstrates that there was no further trading after 6 March 2020, and therefore at the time when the company applied for the BBL.

Prior to the BBL of £17,500 being paid by bank A on 30 October 2020, the bank A account disclosed a balance of £0 and bank B account disclosed an Overdrawn balance of £69.

Therefore the Directors knew or ought to have known that The Liquidated Company would not be in a position to make timely repayments.

Following the payment of the £17,500 on 30 October 2020, £10,000 was paid to the Cano and £2,500 paid to the co-director both within 2 days, and subsequent payments totalling a further £3,040 to the co-director and £300 to Cano by 16 December 2020. A further £1,040 to the co-director in January 2021. The payments totalling £16,880 were paid to the two Directors within 12 weeks of the BBL being paid, and were not used for the economic benefit of The Liquidated Company but for personal gain.

On 12 July 2021 The Liquidated Company entered liquidation with liabilities of £17,500 owed for the BBL and a Trade & expense claims of £860.

Case 304 – Director disqualification for breaches of the terms of the BBL scheme

Director Disqualified for 9 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused the Company (the Company) to obtain a Government-backed Bounce Back Loan (BBL) totalling £50,000 for which he knew or ought to have known it was not eligible for and did not use the BBL for the economic benefit of the Company, contrary to the terms of the BBL. In that:

 On 27 May 2020, he declared that the Company’s estimated turnover was £220,000 within the BBL application form.

 The Company’s bank statements reveal that in the entire period in which it traded (September 2019 to June 2021), aside from the BBL funds, only £6,303.05 was ever received into the Company’s sole bank account. Of that £6303.05, £3000 relates to money paid into the account at the very end of that period, to cover the Insolvency Practitioners’ fees for the liquidation.

 On 29 May 2020 £50,000 was received in the Company’s only bank account, being the proceeds of the BBL.

 Following receipt of the £50,000 BBL funds, the following sums were paid out of the Company’s account:

o A total of £15,000 was paid directly to him between 29 May and 26 October 2020;

o A total of £7,200 was withdrawn in cash on 25 June 2020 and 22 October 2020;

o £5,000 was paid to Party A on 8 June 2020;

o £4,000 was paid to Party B on 10 June 2020;

o £15,000 was paid to Party C (which relates to the purchase of a Van) on 29 May 2020;

o £5,000 was paid to Party D (which relates to the purchase of a Generator) on 10 June 2020.

 He has provided no evidence to demonstrate that the BBL was used in its entirety for the economic benefit of the Company or of how the anticipated turnover was calculated.

 At liquidation, the BBL remained outstanding in full.

Case 305 – Director disqualification for misrepresentation of a company on a Bounce Back Loan application

Director Disqualified for 8 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company), (LC) to apply for a £50,000 Bounce Back Loan (BBL), using an overstated turnover figure of £210,000 in the loan application form, in consequence of which LC received more monies than it was entitled to from the BBL scheme on 08 June 2020 in that,

 Companies incorporated before 01 January 2019 could apply for a loan of up to 25% of turnover in the calendar year 2019, from a minimum of £2,000 up to a maximum of £50,000. If the company was incorporated after 01 January 2019 then an estimated annual turnover could be used by the applicant.

 LC was incorporated on 13 February 2018.

 LC financial statements for the period ending 28 February 2020 record annual turnover at £114,400, which would have allowed LC to apply for a BBL of £28,600 (LC management accounts for the previous period, to 28 February 2019, recorded turnover of £104,000). LC bank statements show deposits totalling £43,271 for the calendar year 2019.

 On the application form she declared LC  turnover in calendar year 2019 at £210,000 and applied for a £50,000 BBL, £21,400 more than LC was entitled to based on 2019 turnover.

 BBL funds of £50,000 were deposited into LC bank account on 08 June 2020, leaving a credit balance of £61,319.

 LC entered liquidation on 31 January 2022. The Statement of Affairs reports creditors of LC totalling £51,200, of which £50,000 is owed to the bank in respect of the unpaid BBL.

Case 306 – Director disqualification for personal use of a Bounce Back Loan

Director Disqualified for 10 years by a director signed undertaking.

On 2 March 2021 The Liquidated Company received £30,000 from a Bounce Back Loan (BBL). The Disqualified Director caused The Liquidated Company to transfer £30,000 of those monies to himself for his own personal benefit rather than using the funds for the economic benefit of the business in breach of the terms of the loan scheme, in that:

 The company obtained a Bounce Back Loan for £30,000 on 2 March 2021 leaving a balance in the bank account of £34,237.

 On 8 April 2021, 20 April 2021, 18 June 2021 and 21 June 2021 a total of £30,000 was transferred to him.

 At liquidation on the 27 August 2021 the company had assets of £3,852 and it owed £31,342 to HMRC, £30,000 in respect of a BBL to a bank and £13,612 to other creditors.

Case 307 – Director disqualification for fraudulently obtaining a bounce back loan

Director Disqualified for 9 years by a signed undertaking of the director.

On 28 May 2020, The Company Director caused The Dissolved Company

to fraudulently obtain a bounce back loan (BBL) of £50,000 by falsely stating that

The Dissolved Company turnover for 2019 was £275,000. In that:

The Dissolved Company was incorporated on 18 June 2019. As The Dissolved Company was incorporated after 01 January 2019, it was able to apply for a BBL based on 25% of its estimated annual turnover from the date that it started business;

The Company Director was a director of The Dissolved Company from 18 June 2019 onwards;

The Dissolved Company carried on business providing mobile sales of beverages and snacks from

July 2019 to November 2019. The Dissolved Company accounting records show that total sales in the period July 2019 to July 2020 were £1,476;

In addition, The Dissolved Company  carried out research into the viability of importing electric vending trucks from China from September 2019 until August 2020. The Dissolved Company derived no income from this source;

On 28 May 2020, The Company Director caused The Dissolved Company to obtain a BBL of £50,000 by falsely stating that The Dissolved Company turnover for 2019 was £275,000;

On the same day, the sum of £50,000 was transferred to The Company Director;

The Dissolved Company BBL of £50,000 remained outstanding at liquidation on 05 May 2021.

Case 308 – Director disqualification for breaching the terms of use of BBL funds

Director Disqualified for 5 years by a director signed undertaking.

The Disqualified Director allowed  The Liquidated Company to apply for a Bounce Back Loan (BBL) of £45,000 and failed to ensure the funds were used for the economic benefit of the company, in that:

 £45,000 was introduced into The Liquidated Company on 15 May 2020 by way of a Government Guaranteed Bounce Back Loan and which was granted with the intention of providing economic benefit to the Company;

 On 18 May 2020 a payment of £45,000 was made from The Liquidated Company’s bank account to a bank account operated by The Disqualified Director’s co-director which was out of the ordinary course of business;

 No evidence has been provided that these funds were used for the economic benefit of The Liquidated Company;

 At liquidation £99,475 was owed to creditors of which £45,000 was in respect of the BBL.

Case 309 – Director disqualification for fraudulently applying for multiple Bounce Back Loans

Director Disqualified for 14 years by Court Order.

Between 05 May 2020 and 12 August 2020, The Disqualified Director caused The Liquidated Company to breach the conditions of the Bounce Back Loan Scheme by applying for two separate Bounce Back Loans (BBL) totalling £80,000. In that:

BBL Scheme conditions state that a business should not apply for a loan if it is already in the process of applying for (or has already received) a BBL scheme facility, the exception being a top-up if they originally borrowed less than the maximum amount (25% of turnover up to a maximum loan of £50,000) available.

The Disqualified Director applied for a BBL on behalf of The Liquidated Company and on 05 May 2020 funds of £50,000 were credited to one of The Liquidated Company bank accounts.

The Disqualified Director applied for a second BBL on behalf of The Liquidated Company and on 13 August 2020 funds of £30,000 were credited to another of The Liquidated Company bank accounts.

At the date of liquidation on 23 December 2020, a total of £236,235 was owed to creditors, of which £80,000 was in respect of the BBL’s.

Case 310 – Director disqualification for breaches of the conditions of the BBL scheme

Director Disqualified for 10 years by a signed undertaking of the director.

On 05 May 2020, The Disqualified Director (The Disqualified Director) caused the Liquidated Company (LC) to provide misleading information to a bank to obtain a Bounce Back Loan (BBL) of £20,000, when he knew or ought to have known that LC was not eligible for a BBL of that amount, in that:

Ahamdiani was the sole director of LC from incorporation on 07 June 2018.

A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019.

The accounts for period 07 June 2018 to 30 June 2019 confirm that LC had a total turnover of £24,330. The Disqualified Director approved the accounts on 05 March 2020.

On 05 May 2020 The Disqualified Director applied for a BBL for the value of £20,000, which was paid into the company bank account on 12 May 2020.

In his application The Disqualified Director stated LC had a turnover of £80,000 for calendar year 2019.

Based on the last set of accounts and entries of the company bank statements it is estimated that the actual turnover for 2019 was £22,531. Using this figure, LC would have been eligible for a BBL of no more than £5,633.

By providing the misleading information, LC obtained a BBL, of at least £14,367 in excess of the BBL amount that it was eligible for.

Creditors at liquidation total £33,341, which includes the BBL of £20,000

Case 311 – Director disqualification for using a false turnover figure to obtain a Bounce Back Loan

Director Disqualified for 5 years by a director signed undertaking.

On 18 May 2020 The Disqualified Director caused The Liquidated Company to make false representations in a Bounce Back Loan (BBL) application of £50,000 on behalf of The Liquidated Company using an overstated turnover figure of £210,000 when it was only entitled to receive £5,713, in that

Under the Bounce Back Loan scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of 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 turnover.

The Liquidated Company was incorporated on 5 October 2016.

 Financial accounts year ending 31 October 2019 show a turnover of £18,867.

 Financial accounts year ending 31 October 2020 show a turnover of £42,799.

 Based on The Liquidated Company’s average monthly turnover for the 2019 calendar year it would only have been entitled to a BBL of £5,713.

 On 18 May 2020 she applied for a bounce back loan of £50,000 on behalf of The Liquidated Company, declaring its turnover in the calendar year of 2019 was £210,000.

 The Disqualified Directorv5 received the BBL funds of £50,000 on 19 May 2020

 At liquidation The Liquidated Company had declared liabilities of £54,972 which include £50,000 in respect of the BBL, £2,500 to her, £2,108 to employee claims and £100 to trade creditors.

Case 311 – Director disqualification for misrepresentations on a Bounce Back Loan application

Director Disqualified for 9 years by an undertaking agreed by the director.

Compensation order case

The Disqualified Director (The Disqualified Director) caused the Insolvent Company (IC) to apply for a Bounce Back Loan (BBL) of £50,000 on 23 September 2020 using overstated turnover figures on the application form. Consequently, IC received monies from the BBL scheme, which it was not entitled to receive:

 The terms of the BBL scheme stated that the company:

– must have been established and carrying on business on 1 March 2020;

– could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019.

 IC was incorporated and trading prior to 1 January 2019. Credits to IC’s bank account from 1 January 2019 to 7 August 2019 totalled £6,451. Dormant accounts were filed for the period from 8 August 2019 to 7 August 2020.

 Despite being dormant on 1 March 2020 and with 25% of a turnover of £6,541 being £1,635, which is below the minimum BBL figure of £2,000, The Disqualified Director applied for a BBL on behalf of IC on 23 September 2020 stating that the company turnover was £200,000.

 On 28 October 2021 IC entered into creditors’ voluntary liquidation with liabilities of £60,000 including £50,000 which is owed in respect of the BBL.

Case 312 – Director disqualification for breaches of the conditions of the Bounce Back Loan scheme

Director Disqualified for 5 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to breach the conditions of the Bounce Back Loan (BBL) Scheme, by allowing the company to apply for and obtain a BBL of £50,000 when she knew or ought to have known that The Liquidated Company was not entitled to this sum. A proportion of the funds obtained were also used for personal purposes rather than for the economic benefit of the business, as was required by the terms of the BBL scheme.

 The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan).

 On 06 August 2020 The Disqualified Director’s co-director, giving his position as ‘Director’, applied for a BBL of £50,000, which The Liquidated Company received on 07 August 2020;

 For a company to be eligible for a BBL of £50,000, an annual turnover of £200,000 was required, the turnover figure concerned being that for the calendar year 2019;

 In the BBL application, her co-director stated that The Liquidated Company had a turnover of £250,000. However The Liquidated Company’ financial statements show turnovers of £54,221 and £46,717 respectively for the years ended 31 March 2019 and 31 March 2020;

 Based on The Liquidated Company’ turnover for the year ended 31 March 2019, the largest BBL the company was entitled to receive was a loan of £13,556;

 The Liquidated Company’ therefore received £36,444 more monies than it was entitled to from the BBL scheme;

 The Disqualified Director has indicated that £35,0000 of the BBL funds was used to pay personal credit card debts and bank analysis shows that in the period immediately following receipt of the BBL on 7 August 2020 to 11 August 2020, £20,956 was used to repay personal credit.

 The Liquidated Company entered liquidation on 05 October 2021 with outstanding liabilities of £60,313, including the bank for the full amount of the BBL.

Case 313 – Director disqualification for overstating turnover on a Bounce Back Loan application

Director Disqualified for 9 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused or allowed 5 Stars The Liquidated Company (LC) to overstate its turnover in its application for a Bounce Back Loan (BBL) resulting in 5 Stars receiving a BBL of £50,000 on the 16 November 2020 which he knew or ought to have known LC was not eligible for. Further, The Disqualified Director failed to use the BBL funds for the economic benefit of LC, which was a requirement of the BBL scheme, in that:

The BBL scheme allowed businesses affected by the Coronavirus pandemic to apply for a government backed loan of between £2,000 and £50,000, up to a maximum of 25% of turnover in the calendar year 2019. Where a business had not traded for the whole of 2019, a business could provide an estimate of their annual turnover.

On 16 November 2020, The Disqualified Director completed and signed the application form for a BBL of £50,000 on behalf of LC. In the application form, LC’ turnover in the calendar year 2019 was stated to be £225,000.

In the calendar year 2019 bank statements show that total deposits of £2,026 were paid into LC’ bank account. This was below the turnover level of £8,000 that was required to obtain the minimum BBL of £2,000 meaning LC was not eligible for the BBL scheme.

It is a condition of the BBL scheme that funds must be used for the economic benefit of the company.

Between 17 December 2020 and 10 March 2021, LC made 3 payments totalling £10,500 to company A which The Disqualified Director’ co-director was the sole director of.

Between 23 December 2020 and 31 December 2020 5 Stars made two payments totalling £14,000 to company B, which The Disqualified Director is associated with.

The £50,000 BBL remains outstanding as at the date of liquidation.

Case 314 – Director disqualification for providing false information on a Bounce Back Loan application

Director Disqualified for 6 years by a director signed undertaking.

In or around June 2020 The Disqualified Director caused The Liquidated Company to apply for and obtain a government backed Business Bounce Back Loan (BBL) totalling £50,000 (‘the loan monies’) for which it was not eligible by providing inaccurate and/or false information and did not use the loan monies for the economic benefit of The Liquidated Company, contrary to the terms of the loan. These actions constitute a misuse of the Covid business support finance scheme. In that:

Application  criteria and miss-statements

 In submitting The Liquidated Company’s BBL application he declared on its behalf that its turnover in 2019 was, or was expected to be, at least £200,000,

 According to The Liquidated Company’s financial statements for the year to 30 September 2019, turnover in that period had been £49,195;

 According to the company’s bank statements, credits of £11,638 were received into the account in the period 1 October 2019 to 31 December 2019.

 He knowingly overstated the turnover of The Liquidated Company by at least £139,167 in order to obtain the maximum BBL permitted

Misuse of monies obtained contrary to terms of BBL

The Liquidated Company’s bank account had an overdrawn balance of £29.89 immediately prior to receipt of the loan monies of £50,000;

 In the five days following receipt of the loan monies he caused The Liquidated Company to make three payments to himself of a total of £23,920 at a time when his directors loan account showed him to be owed £114 by the Company;

 On 10 July 2020, by which time the Company had received further sale credits of only £3,094, he caused The Liquidated Company to make a payment of £8,000 to himself in relation to the construction of a garage at his home; and

 The BBL monies were further defrayed by subsequent payments to him in excess of sale credits marked as ‘expenses’ but for which there is no supporting evidence.

 The Statement of Affairs signed by him on 17 July 2021 shows the BBL lender as a creditor for the full value of the loan monies i.e. £50,000.

 The loan monies were not applied for the benefit of the Company.

Case 315 – Director disqualification for personal use of a Bounce Back Loan

Director Disqualified for 10 years by a signed undertaking of the director.

The Disqualified Director caused The Liquidated Companys to obtain Covid financial support funding totalling £45,841.42 between 6 May 2020 and 11 March 2021 and utilised those funds by making payments to himself, a connected party, and/or for his personal benefit, rather than for the economic benefit of the business of The Liquidated Companys, or in discharging its outstanding liabilities, particularly sums owed to HMRC. In that:

On 04 May 2020, The Disqualified Director applied for a government back Bounce Back Loan (BBL) totalling £15,000 and the monies being credited to MDL’s bank account on 6 May 2020.

On 26 February 2021 The Disqualified Director applied for a top up BBL totalling £14,000, these monies being credited to The Liquidated Companys bank account on 1 March 2021. The terms of the BBL stated that it must be used to provide economic benefit for the business and not for any personal purpose.

In or around June 2020, The Liquidated Companys made an application to the local District Council for a Discretionary Grant and, on 23 June 2020, was advised by email that such application had been successful and that an award of £10,000 was deposited into The Liquidated Companys bank account on 24 June 2020.

In or around March 2021, The Liquidated Companys made further application to the local District Council and, on 11 March 2021, was advised by email that such further application had been successful and that the company had been awarded Additional Restrictions & Local Restrictions Support grants in the total sum of £6,841.42.

Between 06 May 2020 and 11 March 2021 a total of £45,81.42,821.47 was paid into The Liquidated Companys bank account by way of BBL and local authority support grant.

In addition between 28 May 2020 and 26 April 2021 the Company received £22,348.59 through Job Retention Scheme (Furlough) grants from HMRC relating to the employees, being himself.

The only income The Liquidated Companys received during the period 6 May 2020 to liquidation resulted from Covid support schemes.

Expenditure during the same period totalled £62,045.77, of which £32,825.27 was paid to The Disqualified Director, £15,344.36 to a connected party, £7,792.34 to retail outlets (principally food shopping), £1,384.15 on entertainment, £1,118.80 on motor fuel and £673 was withdrawn in cash.

At liquidation the only creditors, other than himself, were the bank in relation to the BBL, totalling £29,000, and £21,401 to HMRC in respect of PAYE and VAT.

No payments were made to HMRC after 12 February 2020 and no payments were or have been made in relation to the BBL.

Case 316 – Director disqualification for misuse of Bounce Back Loan funds

Director Disqualified for 6 years by a signed undertaking of the director.

On 9 May 2020 The Disqualified Director (The Disqualified Director) caused the Liquidated Company (LC) to obtain a Government backed Bounce Back Loan (BBL) totalling £50,000. These funds were not used in their entirety for the economic benefit of the business as required but were used to make investments and to pay his co-director and a connected party. More specifically:

 On 9 May 2020, £2,000 was paid to his co-director. It has been stated that this was a payment for work carried out for LC but no evidence of work having been carried out has been provided.

 On 15 May 2020 and 18 May 2020, two payments of £10,000 each were paid to a third party by way of an investment in that third party’s business.

 On 3 June 2020 and 7 June 20220, £3,000 and £10,000 respectively was paid to a connected party. It has been stated that this was a payment for work carried out for LC, but no evidence of work having been carried out has been provided.

Case 317 – Director disqualification for breaches of the Bounce Back Loan scheme

Director Disqualified for 6 years by an undertaking agreed by the director.

The Disqualified Director caused the Liquidated Company to apply for a Bounce Back Loan (BBL) of £17,500, when he knew or ought to have known that the Liquidated Company failed to be eligible for the loan, and subsequently, caused the Liquidated Company to misuse the funds:

The BBL criteria included:

 that the applicant must be trading in the UK at the date of the application.

 that the applicant must use the funds to provide economic benefit.

 that the funds must not be used for personal benefit.

 That the applicant be able and intend to complete timely repayments.

On 30 October 2020, the Liquidated Company applied for a BBL of £75,000 declaring a turnover of £75,000 in the application. In the absence of any Accounts since the date of incorporation on 15 July 2019, Insolvency Service (IS) carried out a bank analysis of the 2 company accounts, which disclosed the following:

 In the bank account A, which was opened on 3 June 2020, the total income to the date of liquidation was £17,902, which was mainly made up of the 3 small payment after opening, totalling £110, paid in from The Disqualified Director, the BBL payment (£17,500), and £292 from BBL interest rebates. Therefore this demonstrates there was no trading income to be included in a turnover figure.

 In bank account B, which was opened on incorporation, the total income for the period from 15 July 2019 to July 2020, was £26,186.

 Turnover was therefore overstated.

The company’s sole income was from a company based in A, closed down in March 2020, with no employees retained.

The income was paid through a recruitment agency and the bank analysis carried out by IS, for the period from 1 March 2020 discloses that the company received 11 income payments totalling £11,501 in the period from 1 January 2020 to the date of the last income payment on 3 July 2020. This agency has confirmed that the company was engaged for the period from July 2019 to 6 March 2020, and that the payments made between 6 March 2020 and 3 July 2020 related to hours missed in the final timesheet and back-dated VAT. This demonstrates that there was no further trading after 6 March 2020, and therefore at the time when the company applied for the BBL.

Prior to the BBL of £17,500 being paid by bank A on 30 October 2020, bank account A disclosed a balance of £0 and bank account B disclosed an Overdrawn balance of £69.

Therefore the Directors knew or ought to have known that SJS would not be in a position to make timely repayments.

Following the payment of the £17,500 on 30 October 2020, £10,000 was paid to the co-director and £2,500 paid to The Disqualified Director both within 2 days, and subsequent payments totalling a further £3,040 to The Disqualified Director and £300 to the co-director by 16 December 2020. A further £1,040 to The Disqualified Director in January 2021. The payments totalling £16,880 were paid to the two Directors within 12 weeks of the BBL being paid into the company bank account, and were not used for the economic benefit of SJS but for personal gain.

On 12 July 2021 the Liquidated Company entered liquidation with liabilities of £17,500 owed for the BBL and a Trade & expense claims of £860.

Case 318 – Director disqualification for breaches of the terms of the use of funds of the Bounce Back Loan scheme

Director Disqualified for 10 years by a director signed undertaking.

Between 12 May 2020 and 02 March 2021, The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to breach the conditions of the Bounce Back Loan Scheme by applying £40,300 of the £44,000 Bounce Back Loan funds for his personal benefit and not for the economic benefit of LC. In that:

The terms of the Bounce Back Loan Scheme conditions state that the loan should be used only for the economic benefit of the business. As per the terms of the loan agreement, the purpose of the loan is for Business expenditure wholly for the purpose of a business carried on by the customer or intended to be carried on by the customer.

On 12 May 2020, LC received a BBL of £44,000.

Between 12 May 2020 and 02 March 2021, 38 cash withdrawals were made totalling £17,300 and which were not for the economic benefit of LC.

Between 12 May 2020 and 02 March 2021, 10 transfers were made to S L The Disqualified Director totalling £11,000.

On 02 March 2021 a transaction of £12,000 was detailed as self-withdrawal. This transaction caused the company account to be overdrawn and was the last significant transaction made by the company as they ceased trading in March 2021.

At the date of the Liquidation on 31 August 2021, as per the statement of affairs, funds of at least £106,658 were owed to creditors, of which £59,292 was owed to the bank (£44,000 in respect of the Bounce Back Loan), £47,145 to trade creditors, £200 to HMRC.

Case 320 – Director disqualification for breaches of the Bounce Back Loan terms and conditions

Director Disqualified for 3 years by an undertaking agreed by the director.

On 11 July 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company to apply for a Bounce Back Loan (BBL) of £24,625 using overstated turnover figures in the loan application form. Consequently, The Liquidated Company received more monies than it was entitled to from the BBL scheme. In that:

On 11 July 2020 The Liquidated Company obtained a BBL of £24,625 despite its turnover for the year ending 30 June 2019 being only £41,048 (turnover for the year 30 June 2020 was only £41,457). A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019. The company would have been eligible for a BBL loan of £10,262.

On 13 September 2021 The Liquidated Company entered into creditors’ voluntary liquidation with liabilities of £34,542 including £24,625 which is owed in respect of the BBL and £9,917 which is owed to HM Revenue and Customs.

Case 321 – Director disqualification for multiple breaches of the terms of the BBL scheme

Director Disqualified for 3 years by a signed undertaking of the director.

1.The Disqualified Director caused The Liquidated Company to apply for a Government-backed Bounce Back Loan (BBL) of £50,000 and contrary to the terms of the scheme did not use it in its entirety for the economic benefit of the business. In that:

 A company was entitled to apply for a BBL of up to 25% of its turnover under the BBL scheme. It was a requirement of the covid support scheme that the applicant be actively trading on 1 March 2020 to be eligible for the loan and that the proceeds be used for the economic benefit of the company making the application.

 On 12 May 2020 the Company applied to Starling Bank for a BBL of £50,000.

 On 13 May 2020, a BBL for £50,000 was paid into the Company’s bank account.

 Contrary to the terms of the scheme, the entirety of the BBL was paid to M between 13 May 2020 and 18 June 2020.

 On Liquidation the Company’s only creditor was the bounce back loan provider, to whom the outstanding sum due shown in the Estimated Statement of Affairs was £50,000.

2. The Disqualified Director failed to disclose information to the Liquidator in that:

 On 12 May 2020 the Company applied for a BBL of £50,000. The application stated that the Company was actively trading on 1 March 2020 and declared an anticipated turnover for 2020 of £296,000.

 The Report to Creditors in the liquidation signed by him on 13 April 2022 states that the Company never traded.

 He subsequently produced bank statements to show that the Company had opened a bank account with another bank on 16 January 2020 into which funds amounting to £63,512 were credited between January and May 2020.

 Credits paid into both of the Company’s bank accounts were paid out to The Liquidated Company. He has stated that Company sales related to the sale of supplies ordered via The Liquidated Company’ trading account. He is the sole director and shareholder of The Liquidated Company.

 Given the number of transactions through The Liquidated Company’s bank account he provided false information to the Liquidator concerning The Liquidated Company’s trading status and the liquidation of the Company proceeded on that basis.

Case 322 – Director disqualification for several breaches of the terms of the Bounce Back Loan scheme

Director Disqualified for 8 years by a signed undertaking of the director.

Between 04 May 2020 and 21 May 2020, The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to breach the conditions of the Bounce Back Loan Scheme by applying for two Bounce Back Loans of £50,000 each and removing those funds for his personal benefit which was not for the economic benefit of LC. Furthermore, The Disqualified Director failed to disclose the existence of the Bounce Back Loans to the Liquidator as liabilities in the liquidation proceedings. In that:

Bounce Back Loan Scheme conditions state that a business should not apply for a loan if it is already in the process of applying for, or has already received, a Bounce Back Loan Scheme facility, the exception being a top-up if they originally borrowed less than the maximum amount (£50,000) available. The funds are to be used for the economic benefit of the business;

On 04 May 2020, The Disqualified Director applied for a Bounce Back Loan of £50,000 on behalf of LC;

On 08 May 2020, funds of £50,000 were credited to LC current bank account 1;

Between 09 May 2020 and 14 May 2020, funds of at least £50,000 were transferred from DD account 1 to The Disqualified Director’ personal bank account;

On 21 May 2020, The Disqualified Director applied on behalf of LC for a second Bounce Back Loan of £50,000 with a different financial institution;

Also, on 21 May 2021, funds of £50,000 were credited to LC current bank account 2. On the same day, an amount of £50,000 was transferred to The Disqualified Director’ personal bank account;

On 05 June 2020, and following advice from LC accountant, The Disqualified Director instructed the Insolvency Practitioner to commence the liquidation proceedings. The Disqualified Director then failed to schedule both loans as liabilities in the signed Statement of Affairs;

At the date of the Liquidation on 16 June 2020, a total of £161,552 was owed to creditors, of which at least £59,152 was owed to HMRC in respect of CT and VAT, £100,000 in respect of the Bounce Back Loans and £2,400 to trade creditors.

Case 323 – Director disqualification for two breaches of the terms of the Bounce Back Loan scheme

Director Disqualified for 11 years by an undertaking agreed by the director.

On 15 June 2020 The Disqualified Director caused The Liquidated Company to obtain a Government backed Bounce Back Loan (BBL) totalling £50,000 and did not use it in its entirety for the economic benefit of the business, contrary to the terms of the BBL. In that:

 On 15 June 2020, he applied for a Government BBL in the sum of £15,000 which was paid to the Company on 16 June 2020.

 On 17 November 2020 he applied for a Top-Up BBL in the sum of £35,000 which was paid to the Company on 19 November 2020. Prior to receipt of the loan the account balance was overdrawn in the sum of £4,037.20.

 Within the BBL application he declared that the BBL would be used to provide economic benefit to the business.

 He has stated that the Company used the BBL for payment of outstanding debts, rent, insurances, utilities and vehicle taxes. However he has confirmed that the following repayments have been made to himself:

– On 16 June 2020 the sum of £2,500 was paid to him with the description repayment of B&P Loan.

– On 30 November 2020 the sum of £4,000 was paid to him with the description repay loan.

– On 18 January 2021 the sum of £17,697 was paid to him with the description repay director account used to repay directors loan account.

 Consequently there’s no evidence to demonstrate that the BBL was used in its entirety for the business expenditure and economic benefit of the Company.

 He states that the Company ceased to trade on 30 April 2021.

Case 324 – Director disqualification for misrepresentation on a bounce back loan application

Director Disqualified for 3 years by an undertaking agreed by the director.

On 3 August 2020 The Disqualified Director caused the Insolvent Company to obtain a Bounce Back Loan (BBL) of £49,500 to which it was not entitled. From the loan proceeds received, The Disqualified Director used £42,800 of those monies in a way that was not for the economic benefit to the company. In that:

The terms of the BBL scheme stated that the company must have been established and operating before 1 March 2020 and that a business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019 or where a business was established after 1 January 2019 it is their estimated turnover.

the Insolvent Company was incorporated on the 19 November 2019 but there were no business transactions on the company’s bank account until after 1 March 2020, and the company did not commence trading until April 2020. Consequently, the company was not entitled to apply for a BBL of £49,500 on the 3 August 2020.

The terms of the BBL also stated that its intended purpose was to provide economic benefit to the business and not for personal purposes. Having received the BBL of £49,500 on 3 August 2020, most of the funds where unused until £42,800 was paid to a third party between 11 January 2021 and 15 January 2021 after which date there were no business transactions on the company’s bank account and the company ceased trading. The amount of the payments was excessive for the services stated to have been provided.

On 8 September 2021 the Insolvent Company entered creditors’ voluntary liquidation with liabilities of £49,515 including £49,500 which is owed in respect of the BBL.

Case 325 – Director disqualification for breaches of the terms of application for a Bounce Back Loan

Director Disqualified for 3 years by a director signed undertaking.

On 4 May 2020 The Company Director caused The Dissolved Company to fraudulently apply for a bounce back loan (BBL) of £21,250 on behalf of The Dissolved Company and used £20,000 for his personal benefit when he knew or ought to have known The Dissolved Company was entitled to a maximum of £9,985.

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 turnover. 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 turnover. The business should be engaged in trading or commercial activity in the UK at the date of the application, carrying on business on 1 March 2020 and have been adversely affected by coronavirus.

The Dissolved Company was incorporated on 11 June 2019

Bank statements show The Dissolved Company had credits totalling £19,970 for 2019 over a 6-month period

On 4 May 2020, on behalf of The Dissolved Company, The Company Director applied for a BBL of £21,250, declaring a turnover of £85,000.

On 8 May 2020 The Dissolved Company received £21,250 into it bank account.

Between 9 May 2020 and 10 May 2020 payments totalling £20,000 were made to ‘A’

Total liabilities at liquidation are £29,250 including £21,250 in respect of the BBL and £3,000 claimed by the director.

On 12 May 2020 The Company Director caused The Dissolved Company to fraudulently apply for a bounce back loan (BBL) of £21,250 on behalf of The Dissolved Company and used £21,250 for his personal benefit when he knew or ought to have known The Dissolved Company was not eligible for the scheme.

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 turnover. 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 turnover. The business should be engaged in trading or commercial activity in the UK at the date of the application, carrying on business on 1 March 2020 and have been adversely affected by coronavirus.

The Dissolved Company was incorporated on 12 June 2019

The Dissolved Company bank account analysis shows no income received between 12 June 2019 and 9 November 2021, the period the account was operated.

On 12 May 2020, on behalf of The Dissolved Company, The Company Director applied for a BBL of £21,250, declaring The Dissolved Company had an estimated turnover of £85,000.

On 30 June 2020 The Dissolved Company received £21,250 into its bank account.

Between 1 July 2020 and 3 July 2020 £21,200 was transferred to The Company Director

Total liabilities at liquidation are £24,790 including £21,250 in respect of the BBL and £3,540 claimed by the director.

On 11 June 2020 The Company Director allowed The Dissolved Company to fraudulently apply for a bounce back loan (BBL) of £21,250 and received £21,250 for his personal benefit when he knew or ought to have known The Dissolved Company was not eligible for the scheme.

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 turnover. 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 turnover. The business should be engaged in trading or commercial activity in the UK at the date of the application, carrying on business on 1 March 2020 and have been adversely affected by coronavirus.

The Dissolved Company was incorporated on 16 July 2018

Financial accounts ending 31 July 2019 show The Dissolved Company had no turnover.

The Dissolved Company bank account shows no trade income was received between 30 September 2019 and 01 December 2021, the period the account operated.

On 11 June 2020, on behalf of The Dissolved Company , Maqsood Begum applied for a BBL of £21,250, declaring DC had turnover of £85,000.

On 7 August 2020 The Dissolved Company received £21,250 into its bank account.

Between 15 August 2020 and 17 August 2020 £21,250 was transferred to The Company Director

Total liabilities at liquidation are £174,835 including £21,250 in respect of the BBL and £153,540 claimed by directors.

Case 326 – Director disqualification for fraudulent application for a Bounce Back Loan

Director Disqualified for 10 years by a director signed undertaking.

On 16 May 2020 The Company Director (The Company Director) caused The Dissolved Company (DC) to fraudulently apply for a Bounce Back Loan (BBL) of £21,250 on behalf of DC when she knew or ought to have known that TA TEC was not eligible for the scheme. Between 11 June 2020 and 12 September 2020 BBL funds of £21,200 were transferred to a third party for no known economic benefit to the business.

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 turnover. The turnover figure was self-certified by the applicant. The turnover figure required was that for calendar year 2019 or where a business was established after 1 January 2019 their estimated turnover. The business should be engaged in trading or commercial activity in the UK at the date of the application, carrying on business on 1 March 2020 and have been adversely affected by coronavirus.

DC was incorporated on 10 January 2019.

DC’s bank account analysis shows no income was received between 10 January 2019 and 26 August 2021, the period the account was operated.

DC filed dormant accounts for the period ending 31 January 2020.

On 16 May 2020 The Company Director, on behalf of DC, applied for a BBL of £21,250, declaring DC had an estimated turnover of £85,000.

On 10 June 2020 DC received £21,250 into its bank account.

Between 11 June 2020 and 15 June 2020 £21,000 was transferred to a third party

Total liabilities at liquidation are £24,790 including £21,250 in respect of the BBL and £3,540 claimed by the director.

Case 327 – Director disqualification for breaches of the terms and conditions of the Bounce Back Loan Scheme

Director Disqualified for 11 years by a signed undertaking of the director.

The Disqualified Director caused The Liquidated Company to obtain a Government-backed bounce back loan (‘BBL’) of £35,000 for which it was not eligible, by providing false or knowingly inaccurate information to the bank. In addition, she did not .use the entirety of the monies obtained for the economic benefit of The Liquidated Company, contrary to the terms of the loan.

These actions constitute a misuse of the Covid business support finance scheme. In that:

The Liquidated Company obtained a BBL of £35,000 by stating that its turnover in 2019 was £155,000;

Bank statements disclose total income of £35,040 in 2019;

The loan was received on 27 May 2020;

On 20 July 2020 £23,000 was transferred to The Disqualified Director, which she has stated was to reimburse her for payments that she had made personally in respect of The Liquidated Company expenditure;

The use of BBL moneys to repay personal loans to a business is contrary to the intended purpose of the scheme;

At the date of the liquidation the only creditor was the bank for the BBL.

Case 329 – Director disqualification for breaches of the terms of application to the BBL Scheme

Director Disqualified for 9 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) of £50,000 on 24 September 2020 when he knew, or ought to have known, that The Liquidated Company did not meet the criteria for that loan.

In order to be eligible for a Bounce Back Loan, both the Government and the Royal Bank of Scotland’s guidance stated that a company had to be established and operating before 1 March 2020 in order to meet the application criteria. The Liquidated Company was incorporated on 6 March 2020, commenced to trade on that date and therefore was not eligible to apply

On 24 September 2020 The Disqualified Director applied for a Bounce Back Loan on behalf of The Liquidated Company and made a declaration that the company met the eligible criteria for that loan

On 24 September 2020 The Disqualified Director stated on the application for the Bounce Back Loan that the annual turnover of the company was, or was estimated to be, £247,034

On 24 September 2020, a BBL of £50,000 was paid into a bank account in the name of The Liquidated Company.

Draft accounts prepared by the company accountant, based on information provided by The Disqualified Director and signed off by him on 7 April 2021, show that the turnover for the year ending 31 March 2021 was £1,297 gross

Draft accounts prepared by the company accountant, based on information provided to by The Disqualified Director and signed off by him on 7 April 2021, along with company bank statements provided by the Liquidator show that the company appeared to have no income prior to 25 September 2020, when the BBL was paid into the account

Analysis of the company bank account identified payments of £37,051 debited from the account between 1 April 2021 and 5 May 2021, the day after Liquidation, for which no explanation has been provided. This included £21,576.08 by online transfer to loans; £874.49 by card payment to a credit card bill; £1,426.17 by online transfer to an RBS Black account; an unknown debit of £10,000 and an online payment of £2,900

No repayments were made to the BBL other than a Right of Set Off transfer of £41.36 from the company bank account on 13 May 2021

At Liquidation, the only known creditors were RBS and the company accountant

Case 330 – Director disqualification for multiple breaches of the terms of the BBL Scheme

Director Disqualified for 9 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (the Company) to apply for and obtain two separate Government backed Bounce Back Loans (BBL) totalling £60,000 in breach of the BBL scheme. The second submitted BBL application contained false or inaccurate information. Thereafter in breach of the BBL scheme neither BBL was used in its entirety for the economic benefit of the business of the Company. In that:

First BBL application

– In May 2020 the Company applied to Bank A for a Government BBL of £10,000;

– On 12 May 2020 the sum of £10,000, being the BBL, was paid into the Company bank account by Bank A. Prior to receipt of the BBL the bank account balance stood at £119.82 in credit.

– Following receipt of the BBL in the period between 18 May 2020 and 7 July 2020 the Company expended (i) £3,367.36 in Romania, (ii) £1,500 towards an unknown bank loan, (iii) £800 to an unknown entity, (iv) £75 to a finance company and (v) £59.81 to supermarkets & food stores.

– On 18 June 2021 the Company made one repayment towards the BBL in the sum of £187.21, being the only repayment made.

Second BBL application

– In August 2020 in breach of the BBL scheme the Company applied to Bank B for a second Government BBL in the sum of £50,000;

– On 24 September 2020 the sum of £50,000, being the second BBL, was paid into the Company bank account by Bank B. Prior to receipt of the second BBL the bank account balance stood at £2,002.79 in credit.

– In the BBL application form the annual turnover of the Company is stated as £225,000. This is notwithstanding that an analysis of turnover from the Company bank statements in the period 14 August 2019 to 10 August 2020 disclosed turnover as £45,723.88.

– The BBL application form requested an up-to-date annual turnover figure. The Disqualified Director knew or ought to have known that the turnover of the Company was not £225,000. By overstating the turnover the Company received the maximum amount of £50,000, which it was not entitled to.

– Following receipt of the BBL in the period between 24 September 2020 and 29 March 2021 the Company expended: (i) £3,160.40 in Romania; (ii) £2,092.31 to supermarkets & food stores; (iii) £3,200 to an unknown entity; (iv) £25,500 to a car vehicle sales group; (v) £5,000 to a finance company; (vi) £3,350 to individual persons; (v) £430 in ATM withdrawals in the UK; (vi) £366.05 in ATM withdrawals in Egypt; & (vii) £316.32 paid to restaurants & coffee shops.

An analysis of turnover from the Company Bank statements in the period between 24 September 2020 and 29 March 2021 discloses the Company was not trading.

At liquidation in February 2022 the Company owed its creditors at least £60,664.05. Bank A submitted a claim in the sum of £10,030.75. Bank B submitted a claim in the sum of £50,633.30.

Case 331 – Director disqualification for misuse of Bounce Back Loan funds

Director Disqualified for 5 years by an undertaking agreed by the director.

On 03 July 2020 The Disqualified Director caused the Failed Company to transfer £11,900 of monies received by way of a bounce back loan (bbl) to himself for his own personal benefit rather than using the funds for the economic benefit of the business in breach of the terms of the loan scheme, in that:

The company obtained a bbl for £22,450 on 05 June 2020 leaving a balance in the bank account of £23,013.48.

On 03 July 2020 a total of £11,900 was transferred to The Disqualified Director.

At liquidation on the 07 April 2021 the company had no assets and it owed £14,111.93 to HMRC, £22,500 in respect of a BBL to a bank and £720 to other creditors.

Case 332 – Director disqualification for breaches of the terms of the BBL scheme

Director Disqualified for 10 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to overstate its turnover on its application for a Bounce Back Loan (BBL) resulting in The Liquidated Company receiving £18,248 more than it was entitled to. In that:

 The Liquidated Company financial statements for the year ending 30 November 2019 shows a turnover of £123,010.

 The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan).

 Based on the turnover in the 2019 annual accounts, The Liquidated Company would have been entitled to receive £30,752.

 She applied for a BBL of £40,000 on behalf of the company, stating in the loan application that The Liquidated Company’ turnover for 2019 was £200,000.

 On 16 July 2020, funds of £40,000 were credited to The Liquidated Company’ bank account.

 She on behalf of the company, subsequently applied for a top up to the BBL.

 On 18 December 2020 funds of £9,000 were credited to The Liquidated Company’ bank account.

 At the date of liquidation on 14 September 2021 a total of £102,383 was due to creditors including the full amount of the BBL.

Case 333 – Director disqualification for using BBL funds for personal benefit

Director Disqualified for 11 years by Order of the Court.

The Disqualified Director caused The Liquidated Company apply for and receive a Government backed Bounce Back Loan (BBL) of £25,000 of which at least £17,909 was not used for the for the economic benefit of the business but for the personal benefit of The Disqualified Director, in that:

On 07 July 2020 the credit balance in The Liquidated Company bank account was £131, on 08 July 2020 the BBL funds of £25,000 was received into The Liquidated Company bank account increasing the credit balance to £25,131.

On 09 July 2020, a payment of £7,500 was transferred to The Disqualified Director, on 10 July 2020 a payment of £9,329 was paid to a personal credit card provider and on 13 July 2020 a further £3,000 was paid to The Disqualified Director.

The sales income of The Liquidated Company between 08 July 2020 and 13 July 2020 was £1,920. There was no further sales income received until 24 July 2020.

The Disqualified Director has received the economic benefit totalling £17,909 (payments to The Disqualified Director totalling £10,500 on 09 July 2020 and 13 July 2020 plus the £9,329 to a personal credit card provider less the trading income of £1,920) of the BBL funds of £25,000 instead of The Liquidated Company for which it was intended.

The BBL funds transferred totalling £17,909 were over and above director’s weekly remuneration of £1,000. The balance of the BBL funds totalling £7,091 were used for day-to-day business expenditure including a payment of £5,650 to HM Revenue & Customs on 20 July 2020 leaving a balance in the bank account at £349.

At the date of the liquidation creditors totalled £26,209, including the BBL of £25,000.

Case 334 – Director disqualification for false representation on a Bounce Back Loan application

Director Disqualified for 8 years by a signed undertaking of the director.

On 25 August 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company Ltd (The Liquidated Company) to make false representations about the company’s turnover in an application for a Government backed Bounce Back Loan (BBL) totalling £50,000 which was materially greater than that which the Company was eligible to apply for

In that:

 On 25 August 2020, The Liquidated Company obtained a BBL of £50,000 despite it having no turnover for the year to 30 September 2019 or for the year to 30 September 2020. Bank statements do not show the receipt of any trading income until 22 May 2021. A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019.

 On 23 November 2021 The Liquidated Company entered creditors’ voluntary liquidation with liabilities of £80,000 including £50,000 which is owed to in respect of the BBL, and The Disqualified Director stated as being owed £30,000.

Case 335 – Director disqualification for obtaining multiple Bounce Back Loans

Director Disqualified for 9 years by Court Order.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to obtain 2 Bounce Back Loans (BBL) and a Coronavirus Business Interruption Loan (CBIL) with three separate lenders totalling £106,000, when he knew or ought to have known that The Liquidated Company was not eligible for the second BBL. He subsequently failed to ensure the BBL funds were used in their entirety for the economic benefit of the company:

Only one BBL, up to a maximum value of £50,000.00, was permitted with one lender and The Liquidated Company was not permitted to hold both a BBL and a CBIL. As a result he breached the terms of the CBIL, as The Liquidated Company obtained a loan of £41,000 and failed to use the loan amount (or part of it) to repay in full the outstanding balance of its existing BBL.

 On 11 May 2020 a BBL payment of £32,500.00 was paid from Bank A into DD bank account held with them.

 On 22 May 2020 a CBIL payment of £41,000 was paid into The Liquidated Company’s savings bank account held with Bank A.

 On 12 June 2020 a second BBL of £32,500.00 was paid from Bank B into an unknown bank account. He has failed to provide evidence of where this money was paid and if it has been used for the economic benefit of the company.

 Between 11 May 2020 and 01 March 2021, 16 payments were made from the company bank account to him totalling £53,588.00.

 At liquidation The Liquidated Company had liabilities of £131,343.98 including £106,000.00 owing in respect of the two BBLs and one CBIL.

Case 336 – Director disqualification for breaches of the terms of the BBL Scheme

Director Disqualified for 5 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) totalling £25,000 that he knew or ought to have known that The Liquidated Company was not eligible for. Of these funds at least £16,318 was transferred to his personal bank account and was therefore not used for the economic benefit of the company. In that:

The Disqualified Director was a director of The Liquidated Company from incorporation on 25th November 2019

Part of the BBL eligibility criteria was that the company must be actively trading as at 1 March 2020.

According to bank activity, as at 1 March 2020 The Liquidated Company had not traded in terms of generating any turnover. Credits received into the account totalled £50 in 2020 prior to receipt of the BBL and £0 in 2019.

Information from the director revealed that The Liquidated Company had only been able to tender for one contract in May 2020, prior to obtaining the BBL and that all other tenders were dated after obtaining the BBL in September 2020.

No company records have been provided to support that the company ever generated any turnover. On his own admission The Disqualified Director has stated that the company never issued any sales invoices.

On 14 May 2020, The Disqualified Director applied for a BBL of £25,000 on behalf of The Liquidated Company. The loan terms allowed The Liquidated Company to apply for a loan up to 25% of the annual turnover of the company from £2,000 – £50,000.

In the application form, The Disqualified Director declared that The Liquidated Company’s turnover for the calendar year of 2019 was £100,000.

On 10 July 2020 £25,000 was credited to the company bank account.

Between 10 July 2020 and 5 November 2020 The Disqualified Director transferred £21,500 to himself during which time the company had no other trading receipts reducing the balance of the account to £1.559;

On 28 May 2021 The Disqualified Director transferred a further £1,000 to himself. On the company bank statements these payments totalling £22,500 were described as salary yet the company was not registered for PAYE with HMRC and no salary was declared to HMRC. These payments breached the conditions of the BBL which stated that it should be used for the economic benefit of the business.

The Disqualified Director has stated that from July 2020 the sum of £6,182 of the BBL monies were used for company expenses from his personal bank account, copy invoices have been provided for most of the expenditure but not confirmation of payment for all of the transactions. After deducting those expenses The Disqualified Director still would have received £16,318 from the BBL that was not used for the economic benefit of the company.

At the date of liquidation on 22 June 2021 the BBL remained unpaid.

Case 337 – Director disqualification for fraudulent applications to the CJR Scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

Between 01 April 2020 and 28 May 2021 the Disqualified Director caused the Liquidated Company to misuse the Coronavirus Job Retention Scheme (CJRS) by falsely claiming payments from HM Revenue & Customs (HMRC) totalling £84,575 to which it was not entitled. In that:

the full CJRS entitlement was claimed by the Liquidated Company in respect of 3 employees despite those employees not having been furloughed and despite those same employees having continued to work full time for the Liquidated Company.

Case 338 – Director disqualification for misleading application to the Bounce Back Loan scheme

Director Disqualified for 9 years by Order at trial.

On 11 May 2020, The Disqualified Director caused The Liquidated Company to provide misleading information to a bank, to obtain a Bounce Back Loan (BBL) of £50,000 when the insolvent company was eligible for a Bounce Back Loan / BBL of no more than £27,675. In that:

 He was a director of the insolvent company from incorporation on 10 July 2014.

 BBLs were limited to 25% of 2019 calendar year turnover, to a maximum loan value of £50,000, and were to be used for the economic benefit of the company.

 Bank statements for 2019 show sales receipts of £110,702, so the insolvent company was eligible for a Bounce Back Loan of no more than £27,675.

 In the Bounce Back Loan application dated 11 May 2020, he provided a turnover figure of £212,000 for the 2019 calendar year, when turnover was actually £110,702 in 2019.

 By providing the misleading turnover information, the insolvent company obtained a BBL of £50,000, at least £22,325 in excess of the Bounce Back Loan amount that it was eligible for.

 Bank statements confirm receipt of the BBL of £50,000 on 14 May 2020. Prior to receipt of the Bounce Back Loan, the balance on the bank account was £2,044.

 Following receipt of the BBL, between 18 May 2020 and 19 June 2020, there were vehicles purchased totalling £49,100, which were not for the economic benefit of the bust company

Case 339 – Director disqualification for causing an insolvent company to apply for a Bounce Back Loan

Director Disqualified for 9 years by Court Order.

On 04 May 2020 The Disqualified Director caused The Liquidated Company to apply for a Bounce Back Loan (BBL) of £50,000 at a time when he knew or ought to have known that The Liquidated Company was insolvent and furthermore the BBL funds were not used for the economic benefit of The Liquidated Company, in that:

 On 18 March 2020, a winding up petition was served on The Liquidated Company at its registered office;

 A CCJ was issued against The Liquidated Company in the sum of £3,097 on 16 April 2020 and remained unpaid at liquidation;

 On 05 May 2020 BBL funds of £50,000 were paid into The Disqualified Director’s bank account and were not used for the economic benefit of The Liquidated Company

At Liquidation The Liquidated Company owed £129,119 to its creditors, of which £50,000 was in respect of the BBL and £76,454 owed to trade creditors.

Case 340 – Director disqualification for making a BBL application for an insolvent company

Director Disqualified for 6 years by a signed undertaking of the director.

On 04 May 2020 The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to apply for a Bounce Back Loan (BBL) of £50,000 at a time when she knew or ought to have known that LC was insolvent and furthermore the BBL funds were not used for the economic benefit of LC, in that:

 On 18 March 2020, a winding up petition was served on LC at its registered office;

 A CCJ was issued against LC in the sum of £3,097 on 16 April 2020 and remained unpaid at liquidation;

 On 05 May 2020 BBL funds of £50,000 were paid into her co director’s bank account and were not used for the economic benefit of LC

At Liquidation LC owed £129,119 to its creditors, of which £50,000 was in respect of the BBL and £76,454 owed to trade creditors.

Case 341 – Director disqualification for using a BBL to repay a directors loan

Director Disqualified for 9 years by an undertaking agreed by the director.

On 15 June 2020 The Disqualified Director (The Disqualified Director) allowed The Liquidated Company (The Liquidated Company) to breach the conditions of the Bounce Back Loan (BBL) scheme by utilising £28,044 of the BBL advance to repay loans that the directors had previously made to the company, which was not for the economic benefit of The Liquidated Company.

In that

The Liquidated Company obtained a BBL of £47,500 on 01 June 2020 and it was a condition of the loan that The Liquidated Company would use the loan to provide economic benefit to the business and not for personal purposes;

on 15 June 2020 The Disqualified Director allowed The Liquidated Company to repay £30,000 to the directors, of which at least £28,044 could only have come from the BBL advance;

The Liquidated Company went into liquidation on 26 October 2021 without having made any BBL repayments.

Case 342 – Director disqualification for using false information to obtain a bounce back loan

Director Disqualified for 9 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to apply and receive a Bounce Back Loan (BBL) of £35,000 on 11 May 2020 using overstated turnover figures in the application form on 6 May 2020. Consequently, LC received more monies than it was entitled to from the BBL scheme, in that:

 On 11 May 2020 LC obtained a BBL of £35,000 which it was not entitled to. A Business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019. In the application LC’s turnover was stated as £150,000.

 Company Annual Report and Unaudited Accounts for LC Year Ended 30 November 2019 show that the company turnover was £9,396. This would have allowed a BBL of £2,349. Therefore, LC received £32,651 more than it was entitled to.

 Bank statements covering period 4 January 2019 to 12 December 2019 show trade deposits of £8,073.

On 29 October 2021 LC entered liquidation with total liabilities of £41,192 as £37,892 stated as BBL and £3,300 as himself.

Case 343 – Director disqualification for multiple breaches of the BBL Scheme

Director Disqualified for 4 years by an undertaking agreed by the director.

The Disqualified Director caused the Insolvent Company to breach the terms and conditions of the Bounce Back Loan (BBL) scheme by overstating the Insolvent Company’s annual turnover which resulted in the Insolvent Company obtaining the maximum loan value of £50,000 when he knew or ought to have known that it was not entitled to that amount. In that:

 BBL’s were available for an amount of up to 25% of turnover for the calendar year 2019, to a maximum of £50,000. If a company was incorporated after 1 January 2019, an estimated turnover figure could be used.

 As the Insolvent Company was incorporated on 21 October 2011, the turnover figure for the calendar year 2019 should have been quoted on the BBL application form.

 On 11 June 2020, he and his co-director applied for a BBL of £50,000 on behalf of the Insolvent Company, quoting a turnover of £220,000 on the BBL application form. However, accounts for year ended 31 October 2019 show turnover of £40,054 and bank statements for the period 1 November 2019-31 December 2019 show receipts of £61,811. Therefore, the Insolvent Company was not entitled to a BBL of £50,000 which was received on 12 June 2020.

 At the date of liquidation on 14 October 2021, £46,953 was owed to him, £47,948.50 was owed to his co-director and £50,000 was owed to the bank in respect of the BBL. There were no other creditors.

Case 344 – Director disqualification for obtaining a Bounce Back Loan larger than the company was entitled to

Director Disqualified for 9 years by a director signed undertaking.

The Disqualified Director caused The Liquidated Company (hereinafter referred to as LC) to obtain a Bounce Back Loan (BBL) in excess of the amount allowed as per the terms of the Bounce Back Loan scheme, in that:

The terms of the Bounce Back Loan scheme as administered by the British Business Bank state that businesses can apply for between £2,000 up to 25% of their turnover, with the maximum loan being £50,000;

An application for a £50,000 Bounce Back Loan was submitted to Barclays Bank Plc on 5 June 2020 by The Disqualified Director;

In application for the Bounce Back Loan, The Disqualified Director stated that the turnover was £280,000 and that the £50,000 applied for was equal to or less than 25% of the annual turnover for 2019;

The full amount of £50,000 was received into the company bank account on 8 June 2020;

Accounts filed for period ending 31 October 2019, turnover was declared as £46,512. Company bank statements show that the turnover for the 2019 was £49,205.57 meaning the maximum loan permitted was £12,301.40;

No repayments were made towards the bank Bounce Back Loan.

Case 345 – Director disqualification for obtaining a BBL that the company was not entitled to

Director Disqualified for 8 years by an undertaking agreed by the director.

The Banned Directo caused The Liquidated Company to apply for a Bounce Back Loan (BBL) of £46,000 on 13 May 2020 when it was not entitled to funds from the BBL scheme, in that:

 A Business could apply for a BBL if it had been adversely affected by Covid-19 and had been trading on 01.03.20.

 Companies House submissions show that The Liquidated Company submitted dormant accounts’ for YE 31.08.18, YE 31.08.19 and YE 31.08.20.

 Between 29.08.17 and 13.05.20 The Liquidated Company’ s only income was £845 from him.

 Bank Records show between receipt of the BBL on 13.05.20 and 25 September 2020 The Liquidated Company had no trading income and the BBL was used to pay creditors £3,707 and £42,307 wages.

 Between 25 September 2020 and 05 March 2021 The Liquidated Company had a turnover of £542,166.

Therefore, The Liquidated Company was not trading on 01.03.20, was therefore not adversely affected by Covid-19 and was not entitled to any loan from the BBL scheme.

On 27 April 2021 The Liquidated Company entered liquidation with total liabilities of £120,382, of which £44,639 was the BBL.

Case 346 – Director disqualification for making a BBL application for a company that was not trading

Director Disqualified for 10 years by a signed undertaking of the director.

The Disqualified Director caused The Liquidated Company to breach the terms and conditions of the Bounce Back Loan (BBL) scheme by obtaining a BBL of £47,000 to which it was not entitled, in that:

 The BBL scheme was open to businesses carrying on business on 1 March 2020, engaged in trading or commercial activity in the UK at the date of the application and were adversely affected by Coronavirus.

 The Liquidated Company was incorporated on 16 December 2019 and a bank account was opened on 8 January 2020 although no transactions took place until 27 May 2020 when £8,468 was credited to the account. This was the only amount, other than monies received from the BBL, credited to the bank account before liquidation.

 Payroll records show no PAYE returns until March 2021.

 The Liquidated Company was unable to purchase goods from its supplier until September 2020 and those goods would not have been received or sold on until at least March/April 2021.

 On 31 May 2020, The Disqualified Director applied for a BBL of £47,000 on behalf of The Liquidated Company stating in the application form that annual turnover was £195,200.

 On 9 June 2020, the BBL of £47,000 for which The Liquidated Company was not entitled, was credited to the bank account and was then spent between 11 June 2020 and 19 August 2021.

 No evidence has been provided to show that The Liquidated Company was trading on 1 March 2020 or that it was adversely affected by Covid 19.

 At liquidation on 6 December 2021, The Liquidated Company’s liabilities totalled £48,498 of which £46,198 was owed to the bank in respect of the BBL, £1,700 was owed in respect of a Director’s Loan and £600 was owed to an accountant.

Case 347 – Director disqualification for making false application to the Bounce Back Loan scheme

Director Disqualified for 10 years by a signed undertaking of the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company (The Liquidated Company) to overstate its turnover on its application for a Bounce Back Loan (BBL) resulting in The Liquidated Company receiving £17,040 more than it was entitled to. In that:

The Liquidated Company’s financial statements for the year ending 21 June 2019 shows a turnover of £13,155.

The Liquidated Company’s financial statements for the year ending 21 June 2020 shows a turnover of £7,870.

The Liquidated Company’s bank statements show that income of £11,842 was received throughout 2019.

The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan).

Based on income received and banked during 2019, The Liquidated Company would have been entitled to receive £2,960.

The Disqualified Director applied for a BBL of £20,000 on behalf of the company, stating in the loan application that The Liquidated Company’s turnover for 2019 was £100,000.

On 21 August 2020, funds of £20,000 were credited to The Liquidated Company’s bank account.

At the date of liquidation on 01 October 2021 a total of £20,822 was due to creditors including the full amount of the BBL.

Case 348 – Director disqualification for multiple breaches of the terms and conditions of the BBL scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director caused or allowed The Liquidated Company to overstate its turnover in its application for a Bounce Back Loan (BBL) resulting in 5 Stars receiving a BBL of £50,000 on the 16 November 2020 which she knew or ought to have known that The Liquidated Company  was not eligible for. Further, she failed to use the BBL funds for the economic benefit of The Liquidated Company, which was a requirement of the BBL scheme, in that:

 The BBL scheme allowed businesses affected by the Coronavirus pandemic to apply for a government backed loan of between £2,000 and £50,000, up to a maximum of 25% of turnover in the calendar year 2019. Where a business had not traded for the whole of 2019, a business could provide an estimate of their annual turnover.

 On 19 November 2020, she signed an agreement applying for a BBL of £50,000 on behalf of The Liquidated Company. In the application form, The Liquidated Company’ turnover in the calendar year 2019 was stated to be £225,000.

 In the calendar year 2019 bank statements show that total deposits of £2,026 were paid into The Liquidated Company’ bank account. This was below the turnover level of £8,000 that was required to obtain the minimum BBL of £2,000 meaning The Liquidated Company was not eligible for the BBL scheme.

 It is a condition of the BBL scheme that funds must be used for the economic benefit of the company.

 Between 17 December 2020 and 10 March 2021, The Liquidated Company  made 3 payments totalling £10,500 to company A which she is the sole director of.

 Between 23 December 2020 and 31 December 2020, The Liquidated Company made two payments totalling £14,000 to company B, which her co-director was associated with.

 On the 10 March 2021, The Liquidated Company made a payment of £10,000 to an individual associated with her.

 The £50,000 BBL remains outstanding as at the date of liquidation.

Case 349 – Director disqualification for excessive application to the BBL scheme

Director Disqualified for 8 years by a signed undertaking of the director.

The Disqualified Director caused The Liquidated Company to apply for a Government backed Bounce Back Loan (BBL) on 02 September 2020 totalling £50,000 for which it was not eligible for, by including false information relating to its turnover. Consequently, The Liquidated Company received £45,062 more than it was entitled to from the Bounce Back Loan scheme. In that:

The Disqualified Director applied for, and The Liquidated Company received on 02 September 2020, a BBL of £50,000;

The Bounce Back Loan criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover (up to a maximum of a £50,000 loan). For a company to be eligible for a Bounce Back Loan of £50,000, an annual turnover of £200,000 was required, the turnover figure concerned being that for the calendar year 2019;

In the BBL application, The Disqualified Director stated that The Liquidated Company had a turnover of £255,000. However The Liquidated Company’s financial statements show turnovers of £19,749 and £67,487, respectively, for the years ended 28 February 2019 and 28 February 2020;

Based on The Liquidated Company’s turnover for the year ended 28 February 2019, the largest BBL the company was entitled to receive was a loan of £4,938;

The Liquidated Company entered liquidation on 19 October 2021 with outstanding liabilities of £53,878, including the bank for the full amount of the Bounce Back Loan .

Case 350 – Director disqualification for using misleading information to apply for a Bounce Back Loan

Director Disqualified for 3 years by an undertaking agreed by the director.

The Disqualified Director (The Disqualified Director) caused The Liquidated Company Limited (SSSL) to apply for a £50,000 Bounce Back Loan (BBL) on 11 August 2020, using overstated turnover figures in the application form. The Disqualified Director further failed to use the loan monies obtained for the economic benefit of SSSL breaching the terms of the BBL scheme.

 Companies could apply for a loan of up to 25% of turnover in the calendar year 2019, from a minimum of £2,000 up to a maximum of £50,000. SSSL’s financial statements for the period ending 31 August 2019 (approved by The Disqualified Director on 15 December 2020) record annual turnover at £39,075, which would have allowed SSSL to apply for a maximum BBL of £9,769.

 Further SSSL’s Bank statement shows funds received of £37,377.40 between 1 January 2019 and 31 December 2019, which would allow a maximum BBL loan of £9,344.

 On the application form The Disqualified Director declared SSSL’s turnover at £230,000 and applied for a £50,000 BBL, more than SSSL was entitled to, based on its 2019 turnover. This was deposited into SSSL’s bank account on 12 August 2020, leaving a credit balance of £54,517.

 The terms and conditions of the loan stated that it was to be used only to provide economic benefit to the business, and not for personal purposes. However, after the receipt of the BBL The Disqualified Director caused SSSL to enter into the following transactions which provided no apparent economic benefit to SSSL,

 Between 13 August 2020 and 18 August 2021, ATM cash withdrawals were made totalling £13,212.

 Between 21 August 2020 and 22 October 2021, payments totalling £19,158 were made to a third party.

. Between 13 August 2020 and 12 April 2021, payments totalling £13,700 were made to The Disqualified Director in addition to 2 further payments of £2,000 each, withdrawn on 17 August 2020 and 05 January 2021.

. On 24 August 2020, £7,000 was transferred to Omar St ref payment.

. Bank statements record that after the receipt of the BBL, £68,320 was debited from the account with credits of £13,803, of which £2,491 was transferred in from The Disqualified Director.

. The Liquidator reported that SSSL ceased trading on 18 August 2021.

. The books and records delivered up to the liquidator by The Disqualified Director are insufficient to clarify the reasons for the above payments.

Case 351 – Director disqualification for breaches of the terms of application to the BBL scheme

Director Disqualified for 10 years by an undertaking agreed by the director.

The Disqualified Director caused The Liquidated Company to receive a Bounce Back Loan (BBL) of £45,000 on 18 May 2020 using overstated turnover figures in the application form. Consequently, The Liquidated Company received more monies than it was entitled to from the BBL scheme, in that:

On 18 May 2020 The Liquidated Company obtained a BBL of £45,000 which it was not entitled to. A Business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in the calendar year 2019. In the application The Liquidated Company turnover was stated as £180,000.

Bank Records show that turnover for The Liquidated Company for calendar year ending 31.12.19 was £48,180.07. This would have allowed a BBL of £12,045. Therefore, The Liquidated Company received £32,955 more than it was entitled to.

On 05 August 2021 The Liquidated Company entered liquidation with total liabilities of £94,171, of which £45,000 was the BBL.

Case 352 – Director disqualification for applying to the BBL scheme for a company that was not trading

Director Disqualified for 8 years by a signed undertaking of the director.

On 28 May 2020, The Disqualified Director (The Disqualified Director) caused The Liquidated Company (LC) to breach the terms of the bounce back loan scheme (BBLS) by causing LC to obtain a bounce back loan (BBL) of £50,000 when LC was not carrying on business on 01 March 2020. In that:

The Disqualified Director was appointed as a director of LC on 26 April 2019;

It was a condition of the bounce back loan scheme that the business was engaged in trading or commercial activity in the United Kingdom at the date of the application, was carrying on business on 01 March 2020 and had been adversely affected by coronavirus (COVID-19);

LC filed dormant accounts for the period ended 30 April 2020;

LC traded from 07 May 2020 until 30 April 2021;

On 28 May 2020, LC obtained a bounce back loan of £50,000;

The bounce back loan of £50,000 remained outstanding at liquidation on 20 July 2021.