Insolvency Service tackles further Bounce Back Loan abusers

The Insolvency Service has successfully secured restrictions against a gym operator and roofer after they falsely applied for Bounce Back Loans.

In separate applications, Junaid Dar (31), from Birmingham, and David Michael Godderidge (40), from Tamworth, falsely applied for close to £60,000 from the Bounce Back Loan Scheme, intended to support businesses during the pandemic.

In Mr Dar’s case, the Insolvency Service began to investigate his conduct after his company, JDarPT Ltd, entered into liquidation in July 2021.

Investigators uncovered that Mr Dar legitimately applied for a Bounce Bank Loan after he submitted accurate financial statements and in May 2020, received £13,000.

However, Mr Dar also applied for additional loans by applying to two separate financial institutions. The company received in total a further £32,500 in loans that it was not entitled to.

Mr Dar is now banned from running companies for 11 years, effective from 27 April 2022.

Mr Godderidge applied for his own bankruptcy in October 2021 and declared himself as a self-employed roofer.

While assessing Mr Godderidge’s assets to make payments to his creditors, the official receiver uncovered in September 2020 that he had provided incorrect information to obtain a Bounce Back Loan far greater than he was entitled to.

The self-employed roofer had instructed a third party to make the loan application on his behalf using inflated turnover figures before spending the £13,000 Bounce Back Loan on gambling in just three weeks.

Source Financial Accountant click here to read more.