Charles Ling, of North Road, Havering-atte-Bower, had already received a 拢20,000 Bounce Back Loan in May 2020, which was both valid and used legitimately to support Bradcon (Bespoke) Joinery Ltd.
But the 57-year-old then successfully applied to a bank for a second Covid loan of 拢30,000 in June 2020.
In the days that followed, he withdrew 拢9,000 in cash and transferred a 拢2,500 mortgage payment from the loan.聽
The Insolvency Service investigation found that he had falsely claimed it was his first Bounce Back Loan and none of the 拢11,500 was used for business purposes.聽
Ling was charged with one count of fraud by false representation and sentenced to 15 months in custody, suspended for 18 months, at Snaresbrook Crown Court on Wednesday 2nd April. He was also ordered to carry out 100 hours of unpaid work. He paid back the 拢30,000 loan after prosecution action began.
David Snasdell, chief investigator at the Insolvency Service, said: 鈥淐harles Ling stated that this was his first Covid Bounce Back Loan, and that it would be spent wholly on his joinery business, but this was not the case. These loans were designed to help support businesses through the pandemic, not for personal use at the expense of the public purse.聽
鈥淲e are committed to investigating these cases and bringing those responsible to justice.鈥�
The Insolvency Service investigation found no wrongdoing with the use of Ling鈥檚 first Covid Bounce Back Loan of 拢20,000, to which he was entitled and it was used entirely for business purposes.
The maximum loan under the Bounce Back Loan Scheme was 拢50,000. Any loan must be paid back over six to 10 years. If the money is not repaid, then the Insolvency Service can investigate a company even if it has been dissolved.
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