Having Told Barclays Her Business Turnover Was £210k When it Was Just £4 to Blag a £50k Bounce Back Loan from Them and Not Using the Money for the Benefit of That Business a Company Director is Banned for 11 Years

It must have felt like Christmas had came early for the Company Director named in this case, as she blagged Barclays out of a £50k BBL with a turnover of just £4 and didn’t spend it on the Business. She is now starting an 11 year ban.

On 22 June 2020, Fatima Karaca (“Mrs Karaca”) caused EAAS Consultancy Ltd (“EAAS”) to make a Bounce Back Loan (“BBL”) application of £50,000 when she knew or ought to have known that EAAS was not entitled to access the scheme.

In that:

  • Mrs Karaca made a wrongful declaration by overstating EAAS’s turnover, as a result EAAS has received BBL funds of £50,000 that it was not entitled to.
  • Mrs Karaca caused EAAS to expend the £50,000 BBL funds for purposes that did not provide economic benefit to EAAS, in breach of the BBL terms and conditions.
  • 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.
  • EAAS was incorporated on 15 December 2017.
  • On 22 June 2020, Mrs Karaca applied for a BBL of £50,000 on behalf of EAAS declaring that its turnover for the calendar year 2019 was £210,000.
  • Financial accounts for year ending 31 December 2019 show that EAAS had a turnover of £4.
  • EAAS received the BBL funds of £50,000 on 22 June 2020.
  • Between 2 July 2020 to 16 December 2020, the £50,000 BBL funds were utilised to make payments that did not provide economic benefit to EAAS.

At liquidation, EAAS had declared liabilities of £50,505 which is in respect of the BBL.