Fraud: Convictions and sentences February 2023

Bounce back loan: Company director jailed for 12 months

– A director of a haulage company has been jailed for 12 months after fraudulently applying for a £50,000 bounce back loan

– He applied for a £50,000 bounce back loan and transferred the funds to his personal bank accounting within two days of receipt.

– Once the loan was paid into the company bank account, he filed paperwork with Companies House to have the business dissolved. 

Bounce back loan: Company director banned

– A Scottish director fraudulently claimed a £50,000 bounce back loan for a dormant restructuring business months before it went bust

– The claim was based on non-existent income of £250,000. He withdrew all the cash before the company was wound up.

Bounce back loan: Midland Scaffolder banned

– The boss of a Midlands scaffolding firm was given a £50,000 bounce back loan after inflating company turnover, then transferring funds for personal use

– Investigators found that he had stated the company’s turnover as nearly £300,000 when the accounts for 2019 showed turnover of less than £20,000. The company would therefore have only been entitled to a bounce back loan of around £4,000.

Builder jailed for £158k VAT fraud

– A builder from Hull has been jailed for three years following his involvement with a VAT refunds scam

– claimed VAT totalling £378,303, and HMRC paid £158,330 before suspicions were raised.

Family jailed for £2.8m property fraud

– A mother and her three sons have been jailed after a mortgage and property investment fraud which resulted in losses to investors of over £1.5m

– Four property developers have been jailed for multiple counts of mortgage and investment fraud which resulted in losses to investors of over £1.5m with the defendants benefitting from over £2.8m.

Car dealer banned for £50k bounce back fraud

– A car dealer has been disqualified as a director for 11 years after fraudulently taking a £50,000 bounce back loan

– In his application, Thompson stated that the dealership’s turnover for 2019 was around £287,500.

– Investigators discovered that West Midz Cars’ turnover in 2019 had been only £2,500 

Directors given suspended prison sentences over bounce back loans

– A duo of directors who fraudulently claimed bounce back loans have been given suspended prison sentences

– London and Conwy based directors have each been convicted for offences under the Companies Act, after being found to have abused the bounce back loan financial support scheme in 2020.