Seven-year sanction for Middlesbrough electrician who abused Covid loans
An electrician has been given a seven-year disqualification order for abusing government-backed Covid loans.
Christopher Lee applied for two bounce back loans totalling £50,000 – designed to help businesses during the pandemic – despite not being eligible.
Middlesbrough Council’s Trading Standards team investigated and found Lee had already closed his electrical business when he applied for the cash in May 2020.
He admitted two offences of furnishing false information to obtain a bounce back loan.
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What is a bounce back loan?
Bounce back loans were introduced by the government in 2020 to help businesses during the pandemic.
They were designed to be quick and easy to apply for, and businesses did not have to provide any security.
The loans were 100% guaranteed by the government, meaning that if a business was unable to repay the loan, the government would cover the cost.
How did Christopher Lee abuse the scheme?
Lee applied for two bounce back loans totalling £50,000 in May 2020.
However, he was not eligible for the loans because he had already closed his electrical business.
Lee admitted two offences of furnishing false information to obtain a bounce back loan.
He was given a seven-year disqualification order, which means that he is banned from being a director of a company for seven years.
What is the impact of Lee’s actions?
Lee’s actions have cost the taxpayer £50,000.
They have also damaged the reputation of the bounce back loan scheme.
The government has said that it will take action against anyone who abuses the scheme.
What can businesses do to avoid being scammed?
Businesses should be aware of the following tips to avoid being scammed:
- Only apply for loans from reputable lenders.
- Be wary of lenders who offer loans that seem too good to be true.
- Read the terms and conditions of any loan agreement carefully before signing it.
- If you are unsure about a loan, seek advice from a financial adviser.
What should businesses do if they have been scammed?
Businesses that have been scammed should report it to the police and to Action Fraud.
They can also contact their bank or building society for advice.
Seven-year sanction for Middlesbrough electrician who abused Covid loans
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