A businessman has been disqualified as a company director for seven years after he falsely claimed £125,000 in Covid loans. Harjinder Singh, 44, a property developer and lettings agent from Aldridge, legitimately claimed a £20,000 Bounce Back Loan for HP Property (International) Ltd in May 2020. However, he went on to claim a further £30,000 the following month, which he was not entitled to, by falsely declaring it was his first application. He then failed to declare the £30,000 loan when he applied for a £95,000 Coronavirus Business Interruption Loan later that year.
When asked about the incident, Singh told the Insolvency Service he had not read the terms and conditions and said 'we just clicked it.' He was sentenced to 22 months in prison, suspended for two years, when he appeared at Birmingham Crown Court on Tuesday, May 12. He was also disqualified as a company director for seven years, ordered to complete 200 hours of unpaid work, and 20 days of rehabilitation activities.
Exploitation of Covid Support Schemes
David Snasdell, Chief Investigator at the Insolvency Service, said: '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.'
Details of the Fraud
HP Property (International) Ltd was set up in January 2016 and traded as a residential property developer and letting agent. In an interview with the Insolvency Service, Singh acknowledged the application for a £30,000 Bounce Back Loan broke the rules of the scheme. His application for a Coronavirus Business Interruption Loan was made in October 2020. Under the scheme's rules, any outstanding Bounce Back Loan had to be repaid using the new funding, meaning Singh was legally required to disclose it. He disclosed the first £20,000 Bounce Back Loan, which was duly repaid, but failed to declare the fraudulent £30,000, allowing him to keep the money.
HP Property (International) Ltd went into compulsory liquidation in November 2021 after the lender of the business interruption loan went to court to recover the money it was owed. The Insolvency Service is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002.
