Watford Director Handed Suspended Sentence for Covid Loan Abuse
On 29 November 2024, a Watford director was given a suspended prison sentence for fraudulently abusing a £50,000 COVID loan. The director was found to have submitted false information to obtain the loan, which was intended to support businesses during the pandemic.
The director, identified as 47-year-old Michael Jolley, pleaded guilty to fraud at St Albans Crown Court. The court heard that Jolley had applied for the government-backed Bounce Back Loan on behalf of his company, Watford-based Winners Consultancy Ltd, in May 2020.
Jolley submitted a false self-assessment tax return to the British Business Bank, which manages the Bounce Back Loan Scheme. He inflated his company’s turnover by more than £10 million, making it appear eligible for the maximum loan amount of £50,000.
The court was told that Jolley used the loan money for personal expenses, including purchasing a new car and paying off personal debts. He made no payments towards the loan and failed to notify the British Business Bank of his company’s financial difficulties.
Judge Andrew Bright sentenced Jolley to 12 months in prison, suspended for 18 months. Jolley was also ordered to carry out 250 hours of unpaid work and to repay the £50,000 loan.
Investigating officer Detective Constable Laura Walker of the City of London Police’s Fraud and Cyber Crime Unit said: “Michael Jolley fraudulently abused a government scheme designed to support businesses during a global pandemic. His actions were both dishonest and selfish, and he has rightly been sentenced.”
A spokesperson for the British Business Bank said: “We take fraud against the Bounce Back Loan Scheme extremely seriously. We have rigorous processes in place to identify and investigate fraudulent applications, and we will not hesitate to prosecute those who seek to profit from this scheme.”
The Bounce Back Loan Scheme was launched by the government in May 2020 to provide businesses with easy access to loans of up to £50,000 to help them navigate the financial challenges of the COVID-19 pandemic. The scheme was open to small businesses and sole traders with a turnover of less than £500,000.
The government has warned that it will take tough action against individuals and businesses who fraudulently abuse the Bounce Back Loan Scheme. Several cases of COVID loan fraud have already been brought to court, with a number of individuals receiving prison sentences.
Suspended sentence for Watford director following £50,000 covid loan abuse
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