Bounce Back Loan Fraud | Insolvency Service Successful Prosecution
On 13 October 2020 we published an article on this site warning against potential fraudulent use of the Government’s ‘Bounce Back Loan Scheme.’
To access that article please follow the link: Bounce Bank Loan Fraud
Subsequently, on the 25 November 2020 we reported the National Crime Agency had confirmed its first arrest of an individual suspected of committing a fraud against the scheme.
To access that article please follow the link: Bounce Back Loan NCA Arrest
The Insolvency Service has successfully prosecuted a defendant charged with ‘a Bounce Back Loan Fraud’ and Helen Holder of Kangs Solicitors now reports upon that prosecution. Kangs Solicitors is highly regarded for successfully defending clients facing prosecution
s for alleged financial offences of every nature.
Our team is led by Hamraj Kang who is recognised as a leading expert in the field. He is one of only two solicitors nationally to be ranked as a ‘star individual’ for six consecutive years in the leading law directory Chambers & Partners.
Other members of the team are ranked in the Legal 500 and in Chambers & Partners.
For an initial no obligation discussion, please call our Team at any of our offices detailed below:
The Circumstances Of The Prosecution | Kangs Bounce Back Loan Fraud Solicitors
- The defendant was the sole director of a ‘Pizza Takeaway’ business which had been incorporated in January 2020.
- Although application to dissolve the business had commenced in June 2020, less than two weeks later the defendant applied for ‘Bounce Back Loan’ for an amount of twenty thousand pounds.
- The defendant failed to disclose that the business was being dissolved and declared that the repayments under the loan could be met.
- When the loan was due to be repaid in June 2021, the dissolution of the business had already been completed.
- Although the loan had been made with the intent to support the business the defendant admitted that he never intended to use the funds for business purposes but had given fourteen thousand pounds to his family overseas and used the remainder to purchase a car and insurance.
- Having pleaded guilty to offences under section 2 of the Fraud Act 2006 (fraud by false representation) and s1007 of the Companies Act 2006 (aggravated striking off offence) the defendant was sentenced at Manchester Crown Court to imprisonment for twenty four months for the Fraud Act offence and twenty months imprisonment, to run concurrently, for the Companies Act offence.
- The defendant was also disqualified from acting as a director for seven years.
Julie Barnes, Chief Investigator at the Insolvency Service said:
‘Covid loans were designed to support viable businesses during the pandemic. Abdulrazag Zagroba, however, cynically sought to exploit the covid loan scheme and by dissolving his company, he intended to frustrate any attempt by the lender from taking action to recover the outstanding loan.
This sentence should serve as a warning to others who engaged in this behaviour, and they should come clean and repay the money before it is too late.’
How Can We Assist You? | Kangs Financial Crime Solicitors
Kangs Solicitors fields a nationally recognised financial crime defence team. We have over twenty years’ experience representing clients across the country accused of committing fraud offences of every nature, including those running into many millions of pounds.
We represent a wide range of clients including corporates, professional individuals such as lawyers, accountants and stockbrokers as well as other private individuals such as company directors and shareholders.
How To Contact Us | Kangs National Criminal Defence Solicitors
We welcome new enquiries by telephone or email and, when necessary, our expert 24/7 Rapid Response Police Station Team is here to assist you on 07989 521 210 should you require advice and assistance out of office hours.
We provide initial no obligation discussion at our three offices in London, Birmingham and Manchester.
Alternatively, discussions can be held virtually through live conferencing or telephone.