Balloon business owner banned for 9 years after Bounce Back Loan fraud

A retailer from Walsall has been disqualified from running companies for nine years after abusing £45,000 Bounce Back Loan to which she was not entitled.

Rebecca Simmons was a director of Tia-Bella Limited, trading from premises in Queen Street, Wolverhampton.

The company, a specialty balloon and gifts retailer, was incorporated in March 2019 but just over two years later in July 2021, Tia-Bella entered into creditors’ voluntary liquidation. Tia-Bella’s insolvency, however, triggered further inquiries from the Insolvency Service.

Investigators discovered that Ms Simmons had applied for a Bounce Back Loan in May 2020, a loan from the government to support viable businesses during the pandemic, but received funds far greater than what Tia-Bella was entitled to.

Ms Simmons had exaggerated the company’s turnover claiming it to be £180,000 and received a £45,000 loan.

But investigators uncovered that based on available records, Tia-Bella’s annual turnover was a maximum of £1,300. This meant Tia-Bella was not entitled to even the minimum Bounce Back Loan of £2,000.

Further inquiries uncovered that in the space of two months, Ms Simmons caused the company to make payments worth just over £31,000, including a £10,000 directors’ loans, £10,000 towards a company car, and £10,000 worth of repayments of deposits incurred before the pandemic.

Source Financial Accountant click here to read more.