A self-employed construction contractor was given one week to repay half of the Covid business loan he lied to get or face imprisonment.
Fraudster, Adam Lennard, of Woodford Green, in London, was recently ordered by Snaresbrook Crown Court to pay back half of a £20,000 Bounce Back Loan he falsely claimed in 2020 or be locked up.
The 58 year old claimed his East London Property Maintenance business turned over £80,000 a year when in fact the Smeaton Road company was pulling in less than £50,000 in 2019.
Before being declared bankrupt in August 2021, Lennard admitted using the loan for personal use.
The taxpayer-funded scheme was designed to support businesses through the pandemic, which is how Lennard said he would use it.
He was ordered to repay £10,000 of the loan and given an eight-month prison sentence suspended for 15 months.
“Adam Lennard abused the Bounce Back Loan scheme, backed by taxpayers to support businesses through the pandemic,” said Julie Barnes, chief investigator at the Insolvency Service.
“He overstated the turnover for his business, used the funds for his own personal and family use and had no intention of ever paying the money back.
“The Insolvency Service will not hesitate to prosecute cases like this, and Lennard now has a criminal conviction as a consequence of his fraudulent actions.”
Was this interesting? Try Why it’s time to rethink the way we do finance in construction
If you have a tip or story idea that fits with our publication, please contact the news editor rory@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.