Here are the details of this case.
Richard Stephen Jones (“Mr Jones”) caused and/or allowed The Portfolio Place Limited (“TPP”) to breach the terms and conditions of the Bounce Back Loan (“BBL”) scheme by overstating its turnover in an application to obtain a BBL of £45,000.
This resulted in the company receiving more than it was entitled to under the scheme.
In that:
- A company was entitled to apply for one Bounce Back Loan (“BBL”) of 25% of its 2019 turnover, up to a maximum of £50,000 under the government-backed BBL scheme.
- When making an application for a BBL, an applicant had to self-certify the company’s 2019 calendar year turnover.
- Where a company was established after 01 January 2019, the applicant was entitled to provide an estimate of the annual turnover from the date the company started.
- TPP was incorporated on 26 September 2019 and commenced trading on 25 October 2019. It was therefore permitted to estimate its annual turnover.
- On 5 August 2020 Mr Jones’ co-director applied for a BBL on behalf of TPP, stating that the company had an estimated turnover of £180,000 and TPP received a BBL of £45,000 on 6 August 2020.
- At the time of the BBL application, TPP had not produced accounts.
- However, bank statements show credits of £12,233.89 from the commencement of trading on 25 October 2019 to the date of the BBL application on 5 August 2020.
- Pro-rated for a period of 12 months this would give an approximate turnover figure of £16,312, entitling TPP to a BBL of £4,078.
- The Financial statements for the period 26 September 2019 to 30 September 2020 show actual turnover of £9,770 for the first year of trading.
- The statements were approved by Mr Jones on 14 June 2021.
- Repayments have been made to the BBL lender totalling £10,566.
- The BBL lender is a creditor in the liquidation in respect of the BBL in the sum of £36,319.82.
