Zahoor Ahmed Chaudhry, 49, from Leamington Spa, had worked at a local petrol station and is currently unemployed.
He secured a £50,000 Bounce Back Loan for his business in June 2020 despite it having never traded, and therefore not being eligible for financial support through the Bounce Back Loan scheme, which was to support genuine businesses affected by the pandemic.
In addition, he falsely told the bank his turnover was £200,000, in order to secure the maximum £50,000 available under the scheme.
Chaudhry subsequently filed for his own bankruptcy in December 2021, at which point Insolvency Service investigators uncovered his Bounce Back Loan. But Chaudhry stated that his recently deceased wife had taken control of his bank account and spent the money without his knowledge.
However further enquiries showed he had transferred £40,000 of the Bounce Back Loan to a firm of solicitors, and it appeared he had provided a glowing review on their website, although he denied posting it.
The Official Receiver has engaged solicitors to recover this money and expects a positive outcome.
The Secretary of State for Business, Energy and Industrial Strategy accepted a ten-year bankruptcy restrictions undertaking from Zahoor Ahmed Chaudhry, which runs to 20 June 2032.
Kevin Read, Official Receiver at the Insolvency Service, said:
The Covid-19 support schemes generously provided taxpayer money to support genuine businesses and those like Zahoor Chaudhry who have cynically abused the scheme should expect to be caught and punished.
Notes
Zahoor Ahmed Chaudhry is of Leamington Spa and his date of birth is December 1972.
Details of Zahoor Ahmed Chaudhry's undertaking is available on the Individual Insolvency Register
Bankruptcy restrictions are wide ranging. The effects are the same whether you are subject to a bankruptcy restrictions order or to an undertaking. Guidance on the main statutory consequences flowing from a bankruptcy restrictions order or undertaking.
Information about the work of the Insolvency Service, and how to complain about financial misconduct.
