Bounce Back Loan Fraud

There seem to be an increasing number of cases going to courts relating to prosecusion of directors for bounce back loan fraud.

Typically the facts relating to the cases are as follows:

a) In the bounce back loan application, the director claimed turnover significanltly in excess of the actual turnover of the company. Consequently bounce back loans were claimed fraudulently.

b) The bounce back loan is then transferred to the directors private bank account.

c) The director then applies for the company to be dissolved. The strike off application form states that creditors must be informed of the strike off request.

In many cases the courts impose a confiscation order on the director and hence the director effectively becomes personally liable to repay the fraudulently claimed bounce back loan.