Bounce Back Loan fraudster convicted after Insolvency Service investigations
Ricky Harrison fraudulently obtained four Covid Bounce Back Loans, including three for dormant companies
Money from the loans was used by Harrison for his own personal benefit and he attempted to avoid having to make any repayments by applying to have all four of his companies struck-off the Companies House register
Harrison has been sentenced to more than three years in prison following Insolvency Service investigations into his conduct
A director who secured maximum-value Covid loans for three dormant companies and overstated his turnover to secure a fourth during the pandemic has been jailed.
Ricky Harrison received a total of £200,000 in Bounce Back Loans during 2020, when he was entitled to just £16,000 at most. He also spent the money for personal purposes, not for business use as was required.
Three of his companies, Hackney Works Ltd, Tower Hamlets Works Ltd and Ricky Harrison Holdings Ltd, were not trading at the time he made his fraudulent applications to the bank.
The 41-year-old also exaggerated his turnover by more than £150,000 for a fourth company, Newham Works Ltd.
Harrison, of Beacon Court, Hertford Heath, Hertfordshire, was sentenced to three years and two months in prison when he appeared at St Albans Crown Court on Friday 25 April.
He was also disqualified as a director for 10 years.
David Snasdell, Chief Investigator at the Insolvency Service, said:
Ricky Harrison's actions were deeply cynical. He exploited an opportunity to help himself to taxpayers' money during what was a national emergency.
Harrison did not co-operate with Insolvency Service investigations, failing to attend a pre-arranged interview and instead producing a typed statement where he implausibly claimed he was entitled to all the loans and was at liberty to spend the funds as he saw fit.
The reality is that Harrison was not entitled to the vast majority of the money he received and was required to spend the funds for the economic benefit of his business.
This was public money and we will continue to prosecute those who made such obvious false representations to secure Covid support.
Harrison's four companies were incorporated within a three-week period in December 2018 and January 2019.
Hackney Works, Tower Hamlets Works, and Newham Works were all described on Companies House as providing "educational support services". Ricky Harrison Holdings was described as a holding company.
Only Newham Works appeared to have any trading income in 2019.
Harrison himself admitted to an accountant that Hackney Works and Tower Hamlets Works were dormant and that there was no need to prepare any accounts for them.
Analysis of the accounts of Ricky Harrison Holdings revealed no evidence that the company had begun trading in its own right.
Despite this, Harrison falsely declared the companies had an annual turnover of £245,000, £232,000, and £315,000 respectively when he made the applications for three £50,000 Bounce Back Loans across a two-day period in May 2020.
At the same time, Harrison made a fraudulent application for a £50,000 Bounce Back Loan for Newham Works. He declared on the application form that the company's turnover was £215,000 when it was actually only £64,000.
Harrison transferred some of the money he received to his other companies, including Newham Works, and paid a percentage into his own personal account.
A total of £85,000 also appeared to be used for the purchase of a vehicle in June 2020.
Harrison told the bank he would repay the funds, as was required under the terms of the scheme.
However, in July 2020, just weeks after securing the loans, Harrison applied to have Hackney Works and Tower Hamlets Works struck-off the Companies House register.
Harrison subsequently attempted to strike-off Ricky Harrison Holdings and Newham Works in 2021 but was unsuccessful.
No loan repayments were made by Harrison aside from a single payment of £833.
