Bounce Back Fraud Ban Of Ten Years
Coventry Director’s Bounce Back Loan fraud leads to a ten year ban.
Mobile mechanic disqualified following receipt of £40,000 Bounce Back Loan to which director was not entitled.
32 year old Raitis Dzerkalis from Coventry has been given a ten year disqualification as a director.
RDZ Solutions Limited
He was sole director of a Coventry based company, RDZ Solution Ltd (“RDZ”), which was incorporated in 2015. RDZ provided a mobile vehicle breakdown service. RDZ has gone into Creditors Voluntary Liquidation.
However, in June 2020, he applied for and secured £40,000 through the Bounce Back Loan scheme. The Company’s accounts for the year end October 2019 showed a small turnover of £12,240, but Dzerkalis stated the turnover as more than ten times that figure at £162,240. In reality, the most the Company was eligible for under the scheme was £3,060.
Personal Benefit Of Bounce Back Loan
He then proceeded to spend almost the full loan amount for his own personal benefit, and not for legitimate business requirements, breaching the terms of the Bounce Back Loan scheme.
Recoveries
Recovery of the funds is ongoing with £8,000 recovered to date.
Director Disqualification
The Secretary of State for Business, Energy and Industrial Strategy accepted a disqualification undertaking from Raitis Dzerkalis after he admitted securing the Bounce Back Loan fraudulently. He has a ten-year ban from 28 February 2022.
The disqualification undertaking prevents him from directly (or indirectly) becoming involved in the promotion, formation or management of a company, without the permission of the Court.
Insolvency Service Comment
Dave Elliott, Chief Investigator at The Insolvency Service said:
Covid Support Schemes were a lifeline to businesses across the UK protecting jobs and preserving businesses.
As this case shows The Insolvency Service will take swift firm action against directors who sought to abuse the scheme.
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