Company directors banned over £200k Covid loan fraud

The money was intended to help real companies get through the pandemic

Two men who set up bogus businesses to fraudulently claim £200,000 in emergency Covid loans have been banned from running companies.

Muneef Ihsan was listed as the director of three companies given a total of £150,000 in government cash.

Mahir Towid Ul Haque got a £50,000 loan and had used it to buy a Rolex watch, the Insolvency Service said.

Investigators said there was no evidence any of the companies had ever traded.

The Bounce Back Loan was made available to genuine firms struggling to keep going during lockdown.

Both men, from Rotherham, triggered investigations when they put their companies into voluntary liquidation after claiming the loans.

Mr Ihsan, 26 was director of Porthart Ltd, Bargain Basement 90 Ltd and Bargains Basement 90 Ltd - all registered to the same Rotherham address.

The Insolvency Service found he had opened bank accounts for each company in June 2020 for the sole purpose of fraudulently obtaining three £50,000 loans.

He withdrew £24,342 in cash from the companies and set about transferring money to other people, including "close friend" Mahir Towid Ul Haque, said the service.

Mr Ul Haque, 21, was appointed director of Hiitness Ltd, purported to be an online sports retailer, in May 2020.

Before placing his company into liquidation in November 2020, he purchased a Rolex watch, transferred £16,050 to his personal account, withdrew £8,410 in cash and transferred £12,500 to other parties.

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The men were made subjects of disqualification undertakings - equivalent to a disqualification order but without court proceedings.

However, neither man can be involved in the promotion, formation or management of a company without the permission of a court.

Mr Ihsan was banned for 13 years and Mr Ul Haque for six.

It is understood the money has not yet been recovered but the men could face attempts to retrieve it.

Robert Clarke, for the Insolvency Service, said abuse of Covid-19 support schemes could not be tolerated.