Director Given a 10 Year Disqualification for the Usual “Over-Egging of Business Turnover” to Blag HSBC Out of a £50k Bounce Back Loan, Leaving it Unpaid and Taking the Insolvency Route

March 24, 2023 The Disqualification Files, Todays News

Here is the story behind the 10 year Disqualification handed out to the Company Director named for not only blagging a £50k BBL from HSBC but also misusing it.

close a limited company

Ivelin Plamenov Stoynev (“Mr Stoynev”) caused VIP Group Hodl Limited (“VIP”) to breach the conditions of the Bounce Back Loan (“BBL”) Scheme by applying for a BBL of £50,000 when he knew or ought to have known that VIP was only eligible for a loan to a maximum of £9,471, based on the turnover listed for the year ending 31 August 2019 and receipts into the company bank account for the period 1 September 2019 to 31 December 2019.

Of the £50,000 VIP received, Mr Stoynev failed to use £33,595 for the economic benefit of VIP.

In that:

  • The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover, with a maximum loan of £50,000 for the purpose of a business carried on or intended to be carried on by the applicant.
  • The Accounts for the year ended 31 August 2019 showed a turnover of £27,199.
  • This equates to £2,266.58 a month and so for the period 1 January 2019 to 31 August 2019 the turnover would be £18,133.
  • Payments into the company bank account for the period 1 September 2019 to 31 December 2019 totalled £19,751 so in the absence of any records showing otherwise for the period 1 September 2019 to 31 December 2019 the turnover would have been £19,751.
  • A total sum of £37,884 was therefore the maximum allowed to be considered for the company’s turnover for 2019.
  • VIP was eligible to borrow a maximum of £9,471.
  • On 11 July 2020 Mr Stoynev applied for a BBL of £50,000, stating that the annual turnover was £200,000.
  • On 14 July 2020, BBL funds of £50,000 were paid into VIP’s bank account with HSBC.
  • Between 18 July 2020 and 7 September 2020 payments totalling £49,905 were paid out of VIP’s bank account with HSBC, of which £33,595 were not to the economic benefit of VIP.
  • At the date of the Liquidation on 18 February 2022, a total of £51,200 was owed to creditors, of which at least £50,000 is due to a bank in respect of the BBL and £1,200 is due to a trade creditor.