When asked if Santander would be relying on the Treasury guarantee if they cannot recover fraudulent funds, Susan Davies, Head of Business Banking, Santander UK said Yes, and as such one imagines today’s case which resulted in a 4-year disqualification for a Company Director will see the BBL associated with that case being paid back to her bank by HM Treasury.
Between May 2020 and October 2020 John Peter Gittins caused SDMF Ltd (“SDMF”) to breach the conditions of the Bounce Back Loan Scheme by applying the whole of the £8000 received in Bounce Back Loan funds for his personal benefit and not for the economic benefit of SDMF.
- In February 2020, SDMF lost a contract which was its only source of income.
- As a consequence, following advice from the company accounts Mr Gittins who was sole employee removed himself from the payroll and a P45 was issued on 6/3/2020, terminating his employment with SDMF.
- From March 2020, the company no longer engaged in trading or commercial activity. SDMF’s only creditor was HMRC in respect of Corporation Tax for £6020.
- In May 2020, Mr Gittins made application on behalf of the SDMF for a BBL with Santander Bank.
- Bank records show on 15 May 2020, SDMF received a payment of £8,000 into its bank account referenced ‘loan advance’.
- In the following months Mr Gittins withdrew £6840 and states he used this for ‘salary’ payments.
- A further £1205 was used to pay direct debits for personal benefit.
At liquidation on 23 June 2021, SDMF’s deficiency was £16,844 comprising of 3 liabilities being HMRC for £7126, Santander for £8000 and Accountants for £1717.