Fraud: Convictions & sentences - September 2022

Takeaway owner spared jail for £50k VAT fraud

– A takeaway owner based in Knaresborough has been spared jail after admitting to a £50,000 VAT fraud, which spanned more than three years

– The Business was deregistered from VAT in 2015 after claiming that the takeaway was under the income threshold for paying the VAT.

– An investigation, aided by two delivery firms suggested that the takeaway’s turnover was way over the threshold.

Director banned over £200k covid loan abuse

– A company director overstated turnover for his 4 companies to secure £200,000 in Bounce Back loans to pay off a personal loan

– The director has been disqualified for 11 years after he took taxpayers’ money that his companies were not entitled to

– One of the four companies was listed as dormant with Companies House by January 2020

Retailer banned over £45k bounce back loan fraud

– A balloon and gifts retailer has been disqualified for nine years after taking a £45,000 bounce back loan she was not entitled to 

– was a maximum of £1,300. This meant that the company was not entitled to even the minimum bounce back loan of £2,000

– The company entered into creditors voluntary liquidation in July 2021, which triggered an investigation by the Insolvency Service.

Company director sentenced to 100 hours of unpaid community work

 – The director of a roofing company has been sentenced to 100 hours of unpaid community work after failing to maintain company accounts and owing £85,000 to HMRC

– He was sentenced to a 12-month community order at Gloucester Crown Court

Five directors banned over £198k bounce back loan fraud

– In the drive to catch bounce back loan fraudsters, bankruptcy restrictions totalling 48 years have been given to five individuals who took £198,894 in Covid-19 financial support

– In each of the five cases, the bounce back loans were either wrongfully obtained through overstating their businesses turnover, or on behalf of a company that had already ceased trading prior to the pandemic.

A Leamington Spa man banned from acting as director

 – He secured a £50,000 bounce back loan for his business in June 2020 despite it having never traded

– He falsely told the bank his turnover was £200,000, in order to secure the maximum £50,000 available under the scheme.