Scaffolding boss told to repay £100k Covid loan

Mark Degnan "cynically exploited" the government's support scheme for businesses during the pandemic, the Insolvency Service said

The boss of a scaffolding firm who fraudulently claimed £100,000 in Covid loan funds has been ordered to repay the money in full, with interest added.

Mark Degnan, 56, "cynically exploited" the government's scheme to help small businesses during the pandemic in 2020 by falsely inflating his firm's turnover, the Insolvency Service said.

At Leeds Crown Court on Monday, Degnan was told to repay more than £59,500 on top of the £55,608 he had already returned.

In January, Degnan, of Wellhams Road in Pontefract, was given a two-year suspended prison sentence after admitting two counts of fraud by false representation.

'Abused scheme'

Across applications to separate banks in May and July 2020, Degnan fraudulently claimed MBL Scaffolding Services Ltd's turnover was £500,000, the Insolvency Service said.

Investigators later found the company's turnover in 2019 was closer to £162,000, meaning it was ineligible for the full amount.

Under the rules of the scheme, businesses could borrow up to a quarter of their annual turnover, with a maximum loan of £50,000.

Alexander Grierson, head of asset recovery at the Insolvency Service, said: "Securing this confiscation order is important as it means Degnan must pay all the money back plus interest, or go to jail.

"The Insolvency Service remains committed to pursuing fraudsters who abused the Bounce Back Loan Scheme and will continue to use all available powers to ensure criminals do not financially benefit from their illegal activities."

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