Sure, here is a detailed article on the GOV UK news item titled, “Former London minicab driver handed 11-year sanctions for Covid loan abuse”:
Former London minicab driver handed 11-year sanctions for Covid loan abuse
A former minicab driver has been disqualified from being a company director for 11 years – one of the longest disqualifications handed out for COVID-19 Business Interruption Loan Scheme (CBILS) fraud.
Pervez Lorgat claimed almost £50,000 under the government-backed scheme, which was introduced to help companies pay wages throughout the pandemic.
However, he has now been banned from running limited companies until January 2034 following an Insolvency Service investigation.
Lorgat, from Willesden, north London, was the sole director of Greenline Travel Services. The company had a small turnover in 2019 but when applying for the Bounce Back Loan in June 2020 falsely stated it had a £5 million turnover and employed 18 staff.
Lorgat used the loan to pay off personal debts, including a £10,000 credit card bill. He also transferred some of the loan funds to his family members.
The Insolvency Service investigation found that Lorgat had no intention of using the money for the benefit of the company and that he had abused the Bounce Back Loan Scheme.
Lorgat was also ordered to pay £7,000 in legal costs.
Commenting on his disqualification, David Hill, Chief Investigator at the Insolvency Service said:
“Company directors must not abuse COVID-19 support schemes, which were put in place to help otherwise viable businesses survive the pandemic.
“Lorgat deliberately and knowingly provided false information to obtain a Bounce Back Loan, which he then used to pay off his personal debts.”
The Insolvency Service is continuing to investigate those who have abused COVID-19 support schemes. Anyone with information about suspected abuse can report it via the government’s dedicated fraud hotline on 0800 068 4382 or email: COVIDfraud@insolvency.gov.uk.
Additional information
The Bounce Back Loan Scheme was launched by the government in May 2020 to provide financial support to businesses affected by the COVID-19 pandemic. The scheme allowed businesses to borrow up to £50,000, with the government guaranteeing 100% of the loan.
The Insolvency Service is responsible for investigating and prosecuting cases of corporate fraud and misconduct. The Service has a range of powers, including the power to disqualify directors from running limited companies.
Sources
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Former London minicab driver handed 11-year sanctions for Covid loan abuse
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GOV UK a new article on 2025-01-17 14:17 titled “Former London minicab driver handed 11-year sanctions for Covid loan abuse”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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