A West Midlands lettings agent and property developer ahas been sentenced after fraudulently obtaining Covid support loans worth tens of thousands of pounds during the pandemic.
Harjinder Singh, director of HP Property (International) Ltd, was handed a 22-month prison sentence, suspended for two years, after appearing at Birmingham Crown Court on Tuesday 12 May.
The 44-year-old, of Stonnall Road, Aldridge, was also disqualified from acting as a company director for seven years, ordered to complete 200 hours of unpaid work and undertake 20 days of rehabilitation activities.
The case followed an investigation by the Insolvency Service into fraudulent applications made under two separate Government-backed Covid business support schemes introduced during the pandemic.
BOUNCE BACK LOAN
Singh had legitimately secured a £20,000 Bounce Back Loan for HP Property (International) Ltd in May 2020.
However, the following month he successfully applied for a second Bounce Back Loan worth £30,000 from a different bank after falsely declaring it was his first application under the scheme.
Under the rules of the Bounce Back Loan scheme, businesses were only permitted to obtain one loan.
Later that year, Singh applied for a separate £95,000 Coronavirus Business Interruption Loan but failed to disclose the fraudulently obtained £30,000 Bounce Back Loan as required under the scheme’s conditions.
CBILS RULES
Rules surrounding the Coronavirus Business Interruption Loan Scheme required any outstanding Bounce Back Loans to be repaid using the new funding.
While Singh declared the original legitimate £20,000 loan, which was subsequently repaid, he omitted the second £30,000 loan, enabling him to retain money he was not entitled to.
HP Property (International) Ltd, which traded as a residential property developer and lettings agent, entered compulsory liquidation in November 2021 after the lender behind the business interruption loan pursued court action to recover outstanding debts.
During interviews with the Insolvency Service, Singh reportedly admitted the second Bounce Back Loan application breached the rules of the scheme.
According to investigators, Singh claimed he had not read the terms and conditions properly and said: “We just clicked it.”
FALSE DECLARATIONS
David Snasdell, Chief Investigator at the Insolvency Service, says: “Harjinder Singh exploited Covid support schemes that were created in good faith to help businesses survive one of the most difficult periods in recent memory.
“He made deliberate false declarations across two separate applications to keep money he had no right to.
“The Insolvency Service remains committed to ensuring that Covid fraudsters face the consequences of their actions.”
The Insolvency Service has confirmed it is now seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002.
The case is the latest in a series of prosecutions linked to abuse of Government-backed Covid support schemes introduced during the pandemic to help businesses deal with lost income and cashflow disruption.
