The Company Director named below got three Bounce Back Loans, all of which have not been repaid, due to the wrongdoing listed he is now starting a 13 year disqualification.
Shanti Services Ltd
Between 18 July 2020 and 8 December 2020, Amit Dass (“Mr Dass”) provided misleading information to two banks, causing Shanti Services Ltd (“Shanti”) 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.
- 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. Shanti
- Bank statements for Shanti indicate sales receipts of £64,815 during calendar year 2019, meaning that Shanti was eligible for a BBL of no more than £16,204.
- On 18 July 2020, he made application to Bank A on behalf of Shanti. In his application he also misleadingly stated that Shanti’s turnover for calendar year 2019 was £105,000 and requested a BBL of £26,000.
- On 30 July 2020, he caused Shanti to apply for a second BBL from Bank B, contrary to the terms of the scheme. He confirmed that the application was Shanti’s only application for a BBL, and that Shanti was not in the process of applying for or had already received a BBL.
- He misleadingly confirmed that Shanti’s turnover was £115,000, and requested a BBL of £24,000, which Bank B paid to Shanti 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 Shanti 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 Shanti 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 Shanti from the two banks to £54,750, more than the £50,000 maximum allowed under the BBL scheme, and £38,546 more than Shanti 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 Shanti.
Between 3 March 2021 and 24 March 2021, Amit Dass (“Mr Dass”) provided misleading information to a bank, causing Filterology Ltd (“Filterology”) 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 Filterology.
- Filterology was incorporated on 12 December 2019. He purchased the company in early 2021 for £400, and he became the sole director of Filterology on 12 February 2021.
- He stated that Filterology never commenced trading.
- As such, it had no turnover, and was not entitled to a BBL.
- On 03 March 2021, he, on behalf of Filterology, applied for a BBL from a Bank B, claiming that turnover for Filterology was £160,000.
- On 05 March 2021, the Bank B paid £28,000 to Filterology. 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 Filterology. Between 24 and 25 March 2021, £11,500 of the BBL funds were transferred to him.