Here are the details of each case.
11 Year Ban
Mr Stephen Stewart (“Mr Stewart”) caused Panacheict Ltd (“Panacheict”) to apply for a Bounce Back Loan (“BBL”) of £31,000, this sum being received on 27 May 2020, which Panacheict was not eligible to apply for. Furthermore, BBL funds obtained were not used for the economic benefit of Panacheict, as was required by the terms of the BBL scheme.
In that:
- Under the BBL scheme, businesses established prior to 01 January 2019 were entitled to borrow between £2,000 and £50,000 up to a maximum of 25% of turnover in the calendar year 2019.
- A business had to be trading at 01 March 2020 to be eligible to apply. Panacheict was incorporated on 14 November 2016 and began trading immediately.
- Mr Stewart applied for a BBL of £31,000 on behalf of Panacheict declaring that the company’s turnover for the calendar year 2019 was £130,000.
- Panacheict’s accounts for the year ended 31 October 2019 disclose that the company had no turnover for the year, Panacheict having ceased to trade on 31 October 2018.
- Panacheict received the BBL funds of £31,000 on 27 May 2020.
- Between 28 May 2020 and 05 June 2020, following receipt of the BBL, payments were made to Mr Stewart totalling £30,615.
- Total liabilities at liquidation amount to £43,919 of which £29,974 relates to the amount owed in respect of the BBL.
10 Year Ban
Alina Elena Brenciu (“Ms Brenciu”) caused A’s Pristine Cleaning Limited (“Pristine”) to apply for a Bounce Back Loan (BBL) of £49,000 on 19 June 2020 using overstated estimated turnover figures in the BBL application form. Consequently, Pristine received more monies than it was entitled to from the BBL scheme.
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.
- Pristine was incorporated on 22 July 2019.
- On 19 June 2020 Ms Brenciu applied for a BBL of £49,000 on behalf of Pristine declaring that its estimated turnover was £196,000.
- Company Accounts show that Pristine’s turnover for YE 31.07.20 was £18,336, which represented 9 months of trading. Based on these figures, the annual turnover for 12 months would be £24,444.
- The amount of BBL the company was entitled to was at most £6,112. Pristine therefore received at least £42,888 more than it was entitled to under the BBL scheme.
- On 22 June 2020 Pristine received the BBL funds of £49,000
- On 02 November 2020 the bank retained the £17,439 of BBL funds remaining in Pristine’s bank account.
- On 03 March 2022 Pristine entered Creditors Voluntary Liquidation with total liabilities of £33,767 of which £31,561 relates to the outstanding BBL.
