By Samantha Jones-
The Insolvency Service has reported that more than 800 company directors have been disqualified for abusing Covid financial support schemes during the 2023-24 financial year.
This significant increase in director disqualifications, up over 80% from the previous year, highlights the severity of misconduct surrounding the Covid Bounce Back Loan Scheme.
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During the past financial year, a staggering total of 831 directors faced disqualification due to misconduct related to Covid support schemes. These directors, found guilty of exploiting the schemes for personal gain, now face an average disqualification period of over nine-and-a-half years.
The sheer scale of this abuse underscores the urgent need for robust enforcement measures to uphold the integrity of financial assistance programs designed to aid struggling businesses during the pandemic.
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Dean Beale, Chief Executive at the Insolvency Service, emphasized the agency’s unwavering commitment to tackling misconduct within the Bounce Back Loan Scheme.
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Beale stressed the importance of holding rogue company directors accountable for their actions, particularly amid the unprecedented challenges posed by the global pandemic.
The agency has dedicated specialized teams to investigate cases of Bounce Back Loan misconduct and is actively pursuing legal action against individuals who provided false information to obtain undeserved financial support.
Among the directors disqualified for Covid loan abuse in the 2023-24 financial year are Richard Ward and Darrel North, both facing 12-year bans from acting as directors.
Ward falsely applied for multiple Bounce Back Loans on behalf of his companies and misappropriated funds for personal use, while North inflated his company’s turnover to obtain additional loans, diverting substantial sums to his personal account.
The Insolvency Service remains steadfast in its efforts to safeguard the integrity of financial support schemes and hold accountable those who seek to exploit them.
Director disqualifications for Covid support scheme abuse continue to be secured, with numerous cases already underway in the 2024-25 financial year. These decisive actions send a clear message that fraudulent activity will not be tolerated and serve to protect the interests of legitimate businesses and taxpayers
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