Two East Midlands businessmen have been banned from acting as directors after being found to have fraudulently taken out Covid Bounce Back loans
The Insolvency Service said the two – who were not connected – were disqualified following separate investigations into tens of thousands of pounds worth of fraud.
It said Savio Gilbert Pereira, (aged 46), from Market Harborough made a false claim in connection to a business he ran called Himalayan Zest Takeaway. It was based in Market Street in Lutterworth, and went into went into liquidation in November last year.
Back in June 2020 the service said Pereira received the maximum £50,000 loan after claiming the takeaway had a £207,500 turnover. The loans were created to help businesses stay afloat during the pandemic.
Investigators became suspicious after the company went under owing around £51,500, and determined that Pereira had exaggerated the turnover to falsely claim the loan.
It said Pereira was unable to prove that three significant transactions after he got the loan – a £10,000 payment to himself, £28,000 in payments to an unknown recipient and £16,800 in cash – were for the economic support of the restaurant.
In the other, unrelated case, the Insolvency Services said Sajid Anver Valimohammed, (aged 37) and from Leicester, was director of J Dee Designs, until it went into liquidation in December 2020. The business was incorporated in July 2019 and traded as a fashionwear finisher from Upper Charnwood Street.
The service said Valimohammed had failed to keep business accounts and records – a legal requirement of company directors – and was unable to hand them over to the liquidators, which led to an investigation.
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It said that it discovered that he had withdrawn more than £286,000 from the company bank account through 199 separate transfers with the same reference while J Dee Design was in business.
In all the service said £315,300 was withdrawn from the business which Valimohammed could not prove was for legitimate trading activity. Likewise it said he could not prove that a £30,000 Bounce Back Loan had been used for the benefit of the company.
It also said investigators were unable to verify if the business had paid enough tax or whether liquidators would be able to make any recovery of debts.
In a statement it said: “Valimohammed did not contest the disqualification order at court and was banned from being a director for eight years on 9 November this year.
“His ban began on 30 November and the court also awarded full costs to the Insolvency Service.
“Separately, the Secretary of State accepted a disqualification undertaking from Savio Pereira in October, after he did not dispute that he had caused his restaurant to falsely apply for a Bounce Back Loan of £50,000, and had failed to use the money for the economic benefit of the company.
“Pereira’s disqualification started on 15 November this year and lasts for 11 years. The bans prevent the two directors from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court.”
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Dave Elliott, chief examiner at The Insolvency Service, said: “The Insolvency Service takes Bounce Back Loan abuse and the failure to keep, preserve and deliver up books and records very seriously.
“The length of these directors’ bans reflects the gravity of their misconduct, and should serve as a warning to others.”