A director claimed a £30,000 Bounce Back Loan that they were not in fact entitled to. Spending nearly a third of this amount on personal use.
The director, Richard Milne aged 44 was previously director of Langshot Ltd. This was a small consultancy incorporated in 2016. Richard applied for a Bounce Back Loan for the amount of £30k on behalf of the company where he was a director in May 2020. He did this despite the company account showing an annual turnover of approximately £50,000.
However, the maximum the company was actually eligible to claim under the Bounce Back Loan scheme was just under £13,000.
Langshot Ltd received a £30,000 BBL and director, Milne, spent around £8,000 on this personal expenditure. Even though the loan terms stated that the claimed money should be used for legitimate business purposes only.
Fast forward to March 2021, the company was placed into voluntary liquidation. Before the liquidator passed on concerns regarding Milne’s conduct to the Insolvency Service for further investigation.
When the company was placed in liquidation, the company director’s loan account was overdrawn by approximately £30,000. Richard Milne has since agreed to a repayment schedule, of £650 to the liquidator.
The Secretary of State for Business, Energy, and Industrial Strategy accepted a disqualification undertaking from Milne after he admitted to applying for a much large BBL (Bounce Back Loan) than Langshot Ltd was eligible for. Plus, he admitted to using some of the money for personal use.
Milne’s ban will run from 25th May 2022 and will last for 8 years.
About the author
Iain heads Beeston Shenton’s commercial litigation department.
Iain has 30 years of experience in Commercial Debt Recovery and Insolvency fields having worked in both Private Practice and Industry and has extensive experience working across all industry sectors and has particular expertise in working with Insolvency Practitioners in advising and recovering outstanding insolvent company ledgers.
Iain brings a pragmatic and commercial approach.
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