Insolvency Practitioners Duties Regarding Bounce Back Loan Abuse!

[UK Contractor Accountant]

This is comforting to know! ​

"Rachel Reeves to Announce a New Covid Corruption Commissioner If Labour Win the Next Election to Go After All Manner of Abuse of the Public Purse During the Pandemic Such as Eat Out to Help Out Scheme Abusers, Council Business Grants Blaggers and Bounce Back Loan Scammers"​

f you got a Bounce Back Loan, a Council issued Business Grant during the pandemic or even money from the Eat Out to Help Out (EOTHO) Scheme, but committed any form of wrongdoing, such as over-egging your turnover to get a BBL, spending it in a way you were not allowed, or fiddling the figures to blag the EOTHO Scheme, or even skanked a council covid business grant, you may be about to have your collar felt, well if Labour get into power.

Is this going to be another Post Office type scandal if Labour win the next election and carry on with this pledge?

 

[Fagin2021]

Is this going to be another Post Office type scandal if Labour win the next election and carry on with this pledge?

Let me make a prediction...

1. To much fanfare, the new Commissioner will set up fully staffed central and local government departments.
2. After months and years of 'investigations' costing tens of millions, they'll recover tuppence from a couple of scoundrels who were too stupid to do a proper fiddle, cover their tracks, or liquidate their companies.
3. One of the scoundrels will claim he is being targeted because of racism.
4. The exercise will be pronounce a great success, then quietly abandoned.

Sound familiar?

 

[IanSuth]

I actually predict

There will be a couple of trial cases - there will be appeals which put other cases on hold.

At some point it will be found that the system was set up so quickly and in such a haphazard manner that people can claim their fiddling was due to poor systems/checks rather than fraud and the cases will collapse.

No more money will be recovered but the finger will be left pointing at Sunnak etc for a poorly implemented solution missing basic checks and balances (which would suit Reeves nicely)

 

[UK Contractor Accountant]

I actually predict

There will be a couple of trial cases - there will be appeals which put other cases on hold.

At some point it will be found that the system was set up so quickly and in such a haphazard manner that people can claim their fiddling was due to poor systems/checks rather than fraud and the cases will collapse.

No more money will be recovered but the finger will be left pointing at Sunnak etc for a poorly implemented solution missing basic checks and balances (which would suit Reeves nicely)

yep can see it coming up on the Horizon

 

[JEREMY HAWKE]

Bounty Hunters Update

Another BBL lender has signed up to use a Bounty Hunter firm- Barclays is one I know off

if you are a Limited Company Director with a Bounce Back Loan in default or on the way to being defaulted, you are urged to get your Company affairs in order, and quickly. If you are unaware of just what those Bounty Hunters do, well they are a firm of Litigation Funders, who pay to go chasing after money owed when a Company Director has done any form of wrongdoing and owes creditors money.

They pay for the privilege of doing so, and in return they then get a cut of all funds recovered.The BBL Lender applies to the High Court to get a Limited Company wound up, and then they designate an Insolvency Practitioner and in turn a Solicitor to go aggressively after the Directors of such firms, to get as much money back from those Directors as they can, even by going after their personal property and everything else if needed.

So what are red flags IP's are looking for when deciding to engage Solicitors who in turn team up with Bounty Hunters to go after Directors?

I like the sound of the bounty hunting game

How do I get involved?

 

[UK Contractor Accountant]

Here we go again - More Skulduggery resulting in a conviction. A few showcases to get everybody with a BBL in default rattled! It seems they are going after the ones that apply to dissolve their company shortly after receiving BBL funds. Easy pickings first before moving onto the next level up of defaulters who spent BBL funds on themselves.

A couple were sentenced at Liverpool Crown Court on 7 December, following an Insolvency Service investigation which found they had abused a £30,000 Bounce Back Loan, and then closed down their company in an attempt to avoid paying back the loan.

Matthew Christopher Wright, 54, from Liverpool, was sentenced to 14 months imprisonment for each offence of fraud and of failing to tell the bank which had lent his company the money that the business was to be dissolved. The two sentences are to run concurrently, suspended for a period of 18 months.

Karl Thomas Mathers, 50, also from Liverpool, received 10 months imprisonment, suspended for a period of 18 months, for failing to inform the bank that they had applied to dissolve the business.

Wright and Mathers were directors of Northgate Property Associates Ltd in Liverpool, which was incorporated in August 2013, and was used to collect rental income on a property the pair rented out.

The court heard that Wright applied for a £30,000 Bounce Back Loan on behalf of the company in May 2020. Under the rules of the scheme, the money had to be used for the economic benefit of the business.

Investigators discovered that two days after applying for the loan, the pair withdrew the full amount from the company bank account. They paid £21,500 into their joint bank account and £7,450 into Wright’s personal account. And the following day they moved £30,000 from their joint account into Wright’s mother’s bank account.

Shortly afterwards the couple withdrew around another £1,600 from the company to spend on a loan and other expenditure unrelated to the business.

Yet within six days of first applying for the Bounce Back Loan, the pair took steps to close down the company, and applied to Companies House to strike off Northgate Property Associates from the register.

Neither director informed the bank that they planned to dissolve the business, breaching a legal obligation to inform any lenders to whom the company owed money. When Wright and Mathers were sentenced, almost £29,000 was still owed towards the loan. The Insolvency Service continues to work towards recovery of the money.

Julie Barnes, Chief Investigator at the Insolvency Service, said:

Matthew Wright and Karl Mathers abused a scheme that was designed to offer genuine support to businesses through the pandemic.

They cheated the taxpayer for personal gain before swiftly closing down their company.

Their sentences serve as a warning that the Insolvency Service will take action against those who abuse the public purse.

The two were sentenced by Her Honour Judge Pierpoint, who included 100 hours unpaid work and 15 days for a Rehabilitation Activity Requirement – a measure which helps to address offending behaviour – for each as part of their sentence.

 

[UK Contractor Accountant]

Jailbird conviction no 2 for today. Double wammy for this this builder who thought he could secure a gain on ****** using taxpayers money but backfired when the ****** Broker turned out to be wrong-en!

Lukasz Nowak, 43, a self-employed builder from Hounslow, West London, has been sentenced to 20 months imprisonment, suspended for two years, at Lincoln Crown Court. He was also ordered to pay £12,000 compensation to the bank from which he borrowed the money.

Nowak applied for a £50,000 Bounce Back Loan in October 2020. He received the maximum £50,000 loan after stating on the loan application that his business had a turnover of £205,000 for the previous tax year.

But the court heard that Nowak had overstated his income, which was approximately £20,000 for the relevant period, in order to claim the money.

Under the rules of the scheme businesses could claim up to £50,000, depending on their previous year’s turnover, and the money had to be used for the financial support of the business. However Nowak used the loan money to invest in cryptocurrency through an online broker.

But the ****** broker was also committing fraud and stole the full amount of the Bounce Back Loan money that Nowak had believed he was investing. Nowak was later declared bankrupt in July 2021.

 

[N-UPS]

Doesn't say much for his business skills.

Guessing he sold it to his friend and either kept use of the car or got cash on the side - ostensibly this loss makes the £20K unrecoverable should he be tasked on it.

 

[N-UPS]

I woke up at 1:30 AM last night, and for some reason the logical thing to do seemed to be to read this whole thread.

At the start I was shocked at how weak the punishments were.
And how little checking was done.

6 year directorship disqualification for 50K - many people would knowingly go for that even if it was a dead cert. Get your wife to direct the company etc, run a sole trader, go back to work. Not much hinderance for the money.

Only on the last few pages there have been some sentences, I think without exception the sentence was suspended.

Brief thoughts:

Obviously no checks were being done - they should have been checking companies house at least, and supporting evidence of turn over should have been needed.

The Banks should not get taxpayer protection for the cases where the fraud was possible to easily check as above.

The max loan should have been the corporation tax paid on the most recent ct600 (in the last x years) limited to 50K. This is similar to the 1/4th of recent turn over figure, but easier to check against data already submit

These low hanging fruit should be the cases that they are absolutely nailing people for. Sentences, community service on TOP of repayment and all the stress + hassle of the process.

It will be interesting to see how much the figures have changed on repayments / default etc in the 2024 March update.

The period between getting the loan and sending to your bank account seems to figure in the prosecutions. This just makes it blatant. Smarter people dripping it here and there that are closing / dwindling companies out need forensic investigating.

The comedian's case of using the money to live does have some legs, his humour is the companies only asset, so he needs to exist. The question is, was any rainy day saving done, were there assets that could have been used, IE was it necessary. If faced with having this decided by a court we might find repayments flying back in.

Its 50K a time, its worth spending the country £ effort to recover. I don't understand why they did not give more to the investigations team as presumably it is a profit center.

From this

https://www.gov.uk/government/publications/covid-19-loan-guarantee-schemes-repayment-data/covid-19-loan-guarantee-schemes-performance-data-as-at-31-march-2023

~£77B drawn - or a £1180 contribution from every man woman and child.
around £51B is on target to be repaid

this leaves about £230 currently looking dicey / defaulted / required / will require settlement from gov that every person will contribute to. Disgusting and the perpetrators need to be held to account, literally.



I'm sure we've all heard stories. I'd hoped that people would not get away with it, or with just a disqualification from holding directorship.

 

[N-UPS]

Who are connister finance? Are they buying suspect debt?

 

[UK Contractor Accountant]

Who are connister finance? Are they buying suspect debt?

They provided BBL finance :

Conister Finance and Leasing Who Have Admitted Using Private Investigators to Spy On Their Bounce Back Loan Defaulters Are Left Licking Their Wounds But Joyful for the Government Guarantee as Only 61 of Their 275 BBLs are Being Repaid on Schedule​

 

[N-UPS]

Looking at the chart for them, they are out of control. The bounce back loan arena is toxic anyway, but Conster Finance look like a full blown a nuclear meltdown.

 

[Frank Wessely]

Bounty Hunters Update

Another BBL lender has signed up to use a Bounty Hunter firm- Barclays is one I know off

if you are a Limited Company Director with a Bounce Back Loan in default or on the way to being defaulted, you are urged to get your Company affairs in order, and quickly. If you are unaware of just what those Bounty Hunters do, well they are a firm of Litigation Funders, who pay to go chasing after money owed when a Company Director has done any form of wrongdoing and owes creditors money.

They pay for the privilege of doing so, and in return they then get a cut of all funds recovered.The BBL Lender applies to the High Court to get a Limited Company wound up, and then they designate an Insolvency Practitioner and in turn a Solicitor to go aggressively after the Directors of such firms, to get as much money back from those Directors as they can, even by going after their personal property and everything else if needed.

So what are red flags IP's are looking for when deciding to engage Solicitors who in turn team up with Bounty Hunters to go after Directors?

IPs are obliged to look carefully at:-

The financial position of the borrower when the BBL was taken out
The accuracy of financial information provided to the BBL lender in support of the application
How the BBL funds were spent

This is just in respect of BBLs; IPs also have broader responsibilities to investigate the use of all types of Covid support obtained as part of their review of the collapse of a company and directors' conduct.

Thanks.

 

[Frank Wessely]

Another case of abuse of the Bounce Back Loan scheme, but this one caught my eye as I haven't previously seen reference to the purchase of a puppy.......

Plumber handed suspended sentence for spending Covid loans on holiday, gambling and puppy​

 

[WaveJumper]

Basically a slap on the wrist then, probably 150 hours litter picking on the A30 ?

 

[Newchodge]

Another case of abuse of the Bounce Back Loan scheme, but this one caught my eye as I haven't previously seen reference to the purchase of a puppy.......

Plumber handed suspended sentence for spending Covid loans on holiday, gambling and puppy​

What breed?

 

[N-UPS]

IPs are obliged to look carefully at:-

The financial position of the borrower when the BBL was taken out
The accuracy of financial information provided to the BBL lender in support of the application
How the BBL funds were spent

This is just in respect of BBLs; IPs also have broader responsibilities to investigate the use of all types of Covid support obtained as part of their review of the collapse of a company and directors' conduct.

Thanks.

They sound like HR departments. Designed to sound like they are there to help the staff, but they are for the company.

You pay an IP to investigate your companies actions. Worth knowing!

 

[N-UPS]

Basically a slap on the wrist then, probably 150 hours litter picking on the A30 ?

So 10K to his honest business (but dishonestly declaring turnover) then 50K when he found out how easy it was

60K/150 hrs = £400 per hour
not bad for a plumber with gambling problems.

anyone see the problem here?
the country is paying for people to be dicks. We could pay them to for example maintain the countries roads/paths/parks/hospitals.

 

[IanSuth]

They sound like HR departments. Designed to sound like they are there to help the staff, but they are for the company.

You pay an IP to investigate your companies actions. Worth knowing!

You have to think of it that the IP is paid to help the company (and it's debtors), they investigate you as the individual in charge to check what you did wasn't deliberately detrimental to the company or debtors

As long as you think about these things with Individual entity does not = ltd co entity head on - it all makes sense

 

[Frank Wessely]

You have to think of it that the IP is paid to help the company (and it's debtors), they investigate you as the individual in charge to check what you did wasn't deliberately detrimental to the company or debtors

As long as you think about these things with Individual entity does not = ltd co entity head on - it all makes sense

Indeed, it also is vital to ask the right questions of the IP prior to engagement so you have a good understanding of what to expect and do not have any nasty surprises.

Thanks.

 

[WaveJumper]

So 10K to his honest business (but dishonestly declaring turnover) then 50K when he found out how easy it was

60K/150 hrs = £400 per hour
not bad for a plumber with gambling problems.

anyone see the problem here?
the country is paying for people to be dicks. We could pay them to for example maintain the countries roads/paths/parks/hospitals.

Would be slightly concerned with out roads and paths as they never seem to make a go of laying any driveways ..... but I have a feeling they never really tried ?

 

[UK Contractor Accountant]

Another bit of skulduggery resulting in 24 months prison sentence with a Compensation Order thrown in for good measure. Whats the betting that the £500 per month CO wont be adhered to?

A director of a non-existent courier business from London has been sentenced after using a £50,000 bounce back loan for his own personal use

Salih Ozhot, 41, was given a two-year prison sentence, suspended for two years, at Wood Green Crown Court after he admitted cheating taxpayers out of £50,000 by fraudulently applying for a Covid loan.

The Insolvency Service also successfully applied for a compensation order, meaning Ozhot will have to repay the £50,000 he fraudulently obtained in full.

Ozhot, of Southgate, London, claimed to run businesses as a courier and a shisha cafe, and applied for a bounce back loan in September 2020. He applied for the loan on behalf of Kangaroo Courier Services, claiming the business had been set-up in November 2019. However, the business never traded and was ineligible for government support.

He withdrew £19,000 within one week of receiving the loan. Insolvency Service analysis of Ozhot’s transactions between September 2020 and February 2021 indicated he used the loan for personal rather than business purposes.

When questioned by Insolvency Service investigators, he claimed that he had spent £15,000 setting up a website for the bogus company called Kangaroo Courier Services. Ozhot was declared bankrupt in October 2021 and accepted an eight-year bankruptcy undertaking in May 2022, restricting him from being able to borrow more than £500 without disclosing his bankrupt status. He also cannot act as a company director without permission from a court.

Ozhot pleaded guilty to one count of fraud by false representation when he appeared at Highbury Corner Magistrates’ Court in December 2023.

The court ordered Ozhot to pay the loan back at a rate of £500 a month.

 

[UK Contractor Accountant]

Bad boy no2 for today - A Devon Plumber who ran the taps dry on a £60K BBL. Well at least he ended up with a nice family holiday and a puppy (lets hope its wasn't a XL bully!), followed by a bit of gambling with taxpayers money.

Michael Bingham, was sentenced to 20 months in prison, suspended for two years, when he appeared at Plymouth Crown Court on Thursday, January 25. He was sentenced for two counts of fraud by false representation, contrary to section 2 of the Fraud Act 2006.

He must do 150 hours of unpaid work to be completed in the next 12 months. Julie Barnes, Chief Investigator at the Insolvency Service, said: “Michael Bingham showed a complete disregard for a scheme to help businesses survive in the pandemic on not just one, but two separate occasions.

“He spent taxpayers’ money on his own personal living expenses, using the loans for a family holiday, gambling, and even to buy a puppy. Bingham provided a totally fictitious turnover for his business, invented another, and never had any intention of paying the money back.”

Bingham first applied for a £10,000 loan in June 2020, claiming his PCB Plumbing business had a turnover of £40,000. In subsequent interviews, he admitted to Insolvency Service investigators that he invented this figure.

Bingham ignored the rules of the scheme which stated the loans had to be used for the economic benefit of the business by transferring the money to his personal account.

Just one month later, Bingham successfully applied for a £50,000 loan, inventing the company name M and B Gas Installations the day before his application. M and B Gas Installations never traded or was registered with Companies House.

Bingham transferred £22,000 to his father-in-law with a view to starting a drive-laying business which ultimately turned out to be short-lived. He spent the remainder of the money on a camping holiday with his family, Christmas presents, a puppy, and gambling, the court heard.

 

[N-UPS]

Kangaroo couriers?
they could do with that variety of court.

 

[japancool]

Bad boy no2 for today - A Devon Plumber who ran the taps dry on a £60K BBL. Well at least he ended up with a nice family holiday and a puppy (lets hope its wasn't a XL bully!), followed by a bit of gambling with taxpayers money.

Michael Bingham, was sentenced to 20 months in prison, suspended for two years, when he appeared at Plymouth Crown Court on Thursday, January 25. He was sentenced for two counts of fraud by false representation, contrary to section 2 of the Fraud Act 2006.

He must do 150 hours of unpaid work to be completed in the next 12 months. Julie Barnes, Chief Investigator at the Insolvency Service, said: “Michael Bingham showed a complete disregard for a scheme to help businesses survive in the pandemic on not just one, but two separate occasions.

“He spent taxpayers’ money on his own personal living expenses, using the loans for a family holiday, gambling, and even to buy a puppy. Bingham provided a totally fictitious turnover for his business, invented another, and never had any intention of paying the money back.”

Bingham first applied for a £10,000 loan in June 2020, claiming his PCB Plumbing business had a turnover of £40,000. In subsequent interviews, he admitted to Insolvency Service investigators that he invented this figure.

Bingham ignored the rules of the scheme which stated the loans had to be used for the economic benefit of the business by transferring the money to his personal account.

Just one month later, Bingham successfully applied for a £50,000 loan, inventing the company name M and B Gas Installations the day before his application. M and B Gas Installations never traded or was registered with Companies House.

Bingham transferred £22,000 to his father-in-law with a view to starting a drive-laying business which ultimately turned out to be short-lived. He spent the remainder of the money on a camping holiday with his family, Christmas presents, a puppy, and gambling, the court heard.

Frank Wessley already did this one in post 294.

 

[JEREMY HAWKE]

A courier company and a bloke from Devon
FFS

 

[UK Contractor Accountant]

Bad Boy Case file for today - Judge lost his wrag with this one! On top of a 15 month suspended sentence was given 7 days to pay back £10K.​

Not sure what happened after the 7 days expired and the non payment of the £10K. The suspended sentence is no longer suspended?

Self-employed construction contractor transferred Covid funds to his own bank account ​

A man from east London must repay £10,000 within one week after falsely applying for a Covid Bounce Back Loan.

• Adam Lennard inflated the turnover of his East London Property Maintenance business to secure the loan
• He then used the funds for his own personal use
• Lennard must pay half of the £20,000 back within seven days after appearing in court

A man from east London has been ordered to pay £10,000 within one week after transferring a Bounce Back Loan to his own personal account.
Adam Lennard, 58, was sentenced to eight months in prison, suspended for 15 months, after appearing at Snaresbrook Crown Court on Monday 5 February.
Julie Barnes, Chief Investigator at the Insolvency Service, said:

Adam Lennard abused the Bounce Back Loan scheme, backed by taxpayers to support businesses through the pandemic.

He overstated the turnover for his business, used the funds for his own personal and family use and had no intention of ever paying the money back.

The Insolvency Service will not hesitate to prosecute cases like this and Lennard now has a criminal conviction as a consequence of his fraudulent actions.

Lennard applied for a £20,000 loan in August 2020, claiming the annual turnover of his East London Property Maintenance business was £80,000.
The real turnover of the company, based in Smeaton Road, Woodford Green, was under £50,000 in 2019.
Lennard also fraudulently declared he would use the funds for his business in his application.
During interviews with the Insolvency Service, he admitted to using the loan for his personal use, transferring the money to his own bank account between August and November 2020.

 

[Newchodge]

The court ordered Ozhot to pay the loan back at a rate of £500 a month

When he is on an 8 year bankruptcy? How is he going to do that?

 

[UK Contractor Accountant]

Just doesn't seem any consistency in the cases sent for prosecution.

Ive seen Directors who have blagged their turnover and also applied for multiple BBL's just given lengthy bans and other with far less skulduggery sent for prosecution.

Also no mention of confiscation orders or having to repay when only a Ban given down.

 

[Newchodge]

Just doesn't seem any consistency in the cases sent for prosecution.

Ive seen Directors who have blagged their turnover and also applied for multiple BBL's just given lengthy bans and other with far less skulduggery sent for prosecution.

Also no mention of confiscation orders or having to repay when only a Ban given down.

Perhaps it depends on the way they respond to the investigation?

 

[N-UPS]

The Judges should be loosing their rags a lot more often.

 

[UK Contractor Accountant]

This take-away owner "literately" took away all the cash from a £30K BBL - 3 year Jail sentence suspended and told to pay costs of £6K. No mention having to pay the scammed money back though.

A takeaway owner who transferred a £30,000 Covid Bounce Back Loan into personal accounts has been handed a suspended prison sentence.

Zaman Shaa of Woodside Road, Salisbury, was director of Shaa Ventures Ltd, which managed Chutneys Indian takeaway on Estcourt Road, Salisbury, when he applied for the loan in August 2020.

Investigations by the Insolvency Service found he had not used the funds as stated in his application, but transferred the money into personal accounts, sent some abroad and withdrawn significant amounts in cash.

Shaa was also found to have applied to dissolve the business without informing creditors, despite it having traded in the preceding three months.

On Friday 23 February he was sentenced at Winchester Crown Court to 36 weeks in prison, suspended for 18 months, banned from being a company director for two years and told to pay costs of £6,000.

Pete Fulham, chief investigator at the Insolvency Service, said: "Zaman Shaa exploited a scheme intended to help businesses during a national emergency for his own personal gain. His actions cannot simply be dismissed as something he did in the spur of the moment. They required a degree of planning and sophistication over a number of weeks to execute.

"The sentence and disqualification order for Shaa demonstrate we will not hesitate to take action against directors who have abused Covid financial support in such a manner."

 

[N-UPS]

"The sentence and disqualification order for Shaa demonstrate we will not hesitate to take action against directors who have abused Covid financial support in such a manner."

not hesitate to take weak, limp, damp action against directors, leaving them with most of the money they defrauded, and giving an incentive for people to do it again as it pays.

 

[UK Contractor Accountant]

Scammer conviction update for today! this time its a Shisha cafe & courier business owner. Managed to secure a ha-trick- 2 year jail sentence, 8 year Bankruptcy Order and Compensation Order

• Salih Ozhot applied for a £50,000 Bounce Back Loan to support his business, but ended up using the money for his own personal gain
• His actions were described by Insolvency Service investigators as “cynical”, “sophisticated” and “pre-planned”
• Ozhot, who was declared bankrupt in 2021, will have to repay the loan in full

A North London man who admitted cheating taxpayers out of £50,000 by fraudulently applying for a Covid loan has been ordered to pay the money back in full.

Salih Ozhot, 41, was sentenced to two years in prison, suspended for two years, when he appeared at Wood Green Crown Court on Friday 2 February.

The Insolvency Service also successfully applied for a compensation order, meaning Ozhot will have to repay the £50,000 he fraudulently obtained.

Julie Barnes, Chief Investigator at the Insolvency Service, said:

Salih Ozhot abused a scheme designed to offer genuine support to businesses through the pandemic. His actions were cynical, sophisticated and pre-planned.

He cheated the taxpayer for personal gain when the loans specified they were only to be used for the economic benefit of the business.

The Insolvency Service will not hesitate to take action against those who so flagrantly steal from the public purse.

Ozhot, of The Bourne, Southgate, London, who claimed to run businesses as a courier and a shisha cafe, applied for a Bounce Back Loan in September 2020.

He withdrew £19,000 within one week of receiving the loan. Insolvency Service analysis of Ozhot’s transactions between September 2020 and February 2021 indicated he used the loan for personal rather than business purposes.

Ozhot was declared bankrupt in October 2021 and accepted an eight-year bankruptcy undertaking in May 2022, restricting him from being able to borrow more than £500 without disclosing his bankrupt status.

He also cannot act as a company director without permission from a court.

Ozhot pleaded guilty to one count of fraud by false representation when he appeared at Highbury Corner Magistrates’ Court in December 2023.

The court ordered Ozhot to pay the loan back at a rate of £500 a month.

 

[N-UPS]

• Ozhot, who was declared bankrupt in 2021, will have to repay the loan in full

Now we're getting somewhere! Thank you for the update.

 

[IanSuth]

Sounds great in theory but how is an bankrupt supposed to pay back £500 as well as live -either he will end up getting benefits to survive, default, move abroad or work cash in hand/disguise earnings.

I doubt he will even be covering the interest on his debt

 

[N-UPS]

Its better than just letting people off.

 

[UK Contractor Accountant]

Should get a Charging Order on Property if a home owner.

 

[Lisa Thomas]

Sounds great in theory but how is an bankrupt supposed to pay back £500 as well as live -either he will end up getting benefits to survive, default, move abroad or work cash in hand/disguise earnings.

I doubt he will even be covering the interest on his debt

He won't have to pay any of his creditors any more, freeing up his income.

 

[UK Contractor Accountant]

Bad boy case for toady - this one is a case of Turkish delight! 30 month Jail time for his laying his hands on the Turkish Delight (BBL funds) and a confiscation order thrown in for good measure.

Are The Insolvency Service targeting the fast food/restaurant trade for rich pickings?

• Ilhan Kekec fraudulently secured a £30,000 Covid Bounce Back Loan just months into the pandemic
• Within weeks, he had applied to dissolve his business without informing creditors
• He has been jailed for two-and-a-half years and banned as a company director for three years

The owner of a Turkish restaurant who illegally applied for a Covid Bounce Back Loan and then applied to dissolve his company without informing creditors has been jailed.

Ilhan Kekec was sentenced to two-and-a-half years in prison when he appeared at Isleworth Crown Court for sentencing on Monday 18 March.

He was also disqualified as a company director for three years.

Kekec had denied charges of fraud by false representation and failing to notify creditors of a voluntary strike-off but was found guilty by a jury in December 2023.

Julie Barnes, Chief Investigator at the Insolvency Service, said:

Ilhan Kekec saw an opportunity in the early weeks of the pandemic to receive a Covid loan which he never intended to repay.

His actions were thoroughly dishonest and at no point did he ever own up to his crimes.

He will now have the chance to reflect on his behaviour from behind bars.

Kekec, of Abbotts Drive, Waltham Abbey, Essex, applied for a £30,000 Bounce Back Loan in May 2020, falsely claiming the turnover of this Hizirali Ltd business was £125,000.

Hizirali was set up by Kekec to run the Derwish Kebab Restaurant inside the food court of the East Shopping Centre on Green Street, Forest Gate, London.

Kekec had traded for three years through Helosh Ltd as the Derwish Restaurant on St Albans Road, Watford, before opening this second restaurant.

However, his new venture only traded for three weeks before the Covid lockdown, and he was unable to open during that period.

Kekec withdrew the Bounce Back Loan money in cash and later admitted to Insolvency Service investigators that he spent the funds on clearing personal debts.

He applied to dissolve his company in June 2020, claiming it was no longer economically viable for him to run the restaurant.

However, he deliberately failed in his statutory duty to inform his creditors within seven days of his voluntary strike-off application with Companies House.

Kekec was sentenced to two-and-a-half years each for two counts of fraud by false representation, and two years and four months respectively for offences under the Companies Act, with the sentences to run concurrently.

He is now subject to confiscation proceedings which have been scheduled for this year.