The Insolvency Service has been chasing down more people who they believe to have misused the Bounce Back Loan system.
Junaid Dar – a 31-year-old from Birmingham – and David Michael Godderidge, 40, from Tamworth, were both tackled by the Insolvency Service after they applied for almost £60,000 in Bounce Back Loan funding.
Dar’s company, JDarPT Ltd, went into liquidation in July 2021.He has initially made a legitimate claim for Bounce Back Loan funding in May 2020 – acquiring £13,000.
Although, Dar then went on to make two more financial requests – illegitimately – and got £32,500 more in loans.
From 22 April 2022, Dar will be banned from acting as a director of a business for 11 years.
Godderidge made himself bankrupt in October 2021, declaring himself as a self-employed roofer.
The Official Receiver, who was analysing Godderidge’s assets in order to make payments to creditors, noted that Godderidge had put down false information in order to obtain a larger Bounce Back Loan.
The roofer had told a third-party to apply on his behalf and the third-party gambled away the £13,000 that he was given within just three weeks.
The Official Receiver decided to extend Gooderidge’s bankruptcy restrictions. These reactions will last for seven years and he will be limited in his ability to access credit. He cannot become a company director without permission from the court.
What the Insolvency Service said
Sue Macleod for the Insolvency Service, said: “Bounce Back Loans were made available for trading businesses adversely affected by the pandemic and were issued based on accurate financial statements.
“Both Junaid Dar and David Godderidge cynically applied for loans far greater than they were entitled to and clearly thought they could get away with it. Thankfully our interventions uncovered their abuse and their restrictions will prevent them from abusing their position in the future.”
At Business Helpline, we have been telling you about the government’s desire to try and recoup any money that they feel was illegitimately lost through financial schemes that were designed to help businesses during the pandemic.
If you feel like you might have got yourself into a pickle with your Bounce Back Loan, do not hesitate and get in touch with us at 0800 088 2142.