You can see why Santander are snooping in the accounts of their customers who got a Bounce Back Loan to see if things do not match up with the application for those loans when you read the ease at which this Company Director got and spent his BBL, and the wrongdoing ultimately uncovered saw him disqualified for 7 years.
In February 2021 Mr Helal Uddin (“Mr Uddin”) caused Spice Merchant St Neots Ltd (“SMST”) to provide misleading information to a bank to obtain a Bounce Back Loan (“BBL”) of £50,000 which SMST received on 01 February 2021, when he knew or ought to have known that SMST was eligible for a BBL of no more than £20,337.
In that:
- Mr Uddin was the sole director of SMST from incorporation on 20 April 2015.
- The accounts for period ending 30 April 2019 confirm that SMST had a total turnover of £81,346.
- The accounts for period ending 30 April 2020 confirm that SMST had a turnover of £84,095.
- BBL’s were limited to a maximum of 25% annual turnover in 2019.
- Mr Uddin applied for a BBL for the value of £50,000, which was paid into the company bank account on 01 February 2021.
- Mr Uddin stated on the application form that the turnover for SMST for 2019 was £210,000.
- Mr Uddin has failed to explain or provide any evidence to why he used the £210,000 turnover figure on the application form.
- Bank statements show from 01 May 2020, the first day after the last accounts, to 18 February 2021, the company received a trading income of £124,740.
- By providing the misleading information, SMST obtained a BBL of £50,000, at least £29,663 in excess of the BBL amount that it was eligible for.
Creditors at liquidation total £68,770, which includes the BBL of £50,000