Zahoor Ahmed Chaudhry, 49, a resident of Leamington Spa, used to work at a nearby gas station but is now unemployed.
Despite the fact that his company had never traded and was therefore ineligible for financial support through the Bounce Back Loan initiative, which was designed to aid legitimate businesses devastated by the pandemic, he was able to acquire a £50,000 Bounce Back Loan for it in June 2020.
Additionally, in order to obtain the maximum £50,000 permissible under the scheme, he misrepresented to the bank that his turnover was £200,000.
After Chaudhry submitted his own bankruptcy petition in December 2021, the Insolvency Service’s investigators learned about his Bounce Back Loan.
However, Chaudhry claimed that his lately passed-away wife had taken over his bank account and squandered the money without his knowledge.
Further investigation revealed he had sent a law company £40,000 from the Bounce Back Loan, and it appeared he had left a positive review on their website, even though he denied doing so.
The Official Receiver has hired attorneys to pursue the recovery of this money and anticipates success.
Until June 20, 2032, Zahoor Ahmed Chaudhry agreed to a ten-year bankruptcy limitations undertaking, which was accepted by the Secretary of State for Business, Energy, and Industrial Strategy.
Official Receiver at the Insolvency Service Kevin Read said:
The Covid-19 support schemes generously donated taxpayer funds to help legitimate enterprises, and those who have misused the programme cynically, like Zahoor Chaudhry, should anticipate being identified and penalised.