The head of a car sales company has had to repay more than £35,000 after taking out two Covid Bounce Back loans.
Joseph Harrison, who ran South East Commercials Ltd, has been banned from being a director for 12 years after “abusing” the scheme.
The car dealer from Wrotham, who is now living in Spain, dissolved the company in January.
An Insolvency Service investigation found that the 38-year-old applied for a Covid loan of £45,000 in June 2020.
However, he applied for a second loan in August 2020 for a further £45,000, having declared this was his first and only application for his business.
Measures were introduced during the pandemic to support companies, which included loans, grants and tax allowances.
The Bounce Back loan scheme helped small and medium-sized businesses to borrow between £2,000 and £50,000 at a low interest rate, guaranteed by the Government.
On Tuesday, April 15, a hearing was held at the High Court in London, where Harrison was disqualified from being a director for 12 years, with his ban beginning last Tuesday (May 6).
He was also ordered to repay the current balance of £38,295 from the second loan.
Ann Oliver, chief investigator at the Insolvency Service, said: “Joseph Harrison applied for and received a second Covid loan when he was only entitled to one for his car sales business.
“A 12-year ban is a significant disqualification and demonstrates the seriousness of his actions.
“The Insolvency Service is committed to ensuring those who abused this scheme – which was designed to benefit the economy and help small businesses – are brought to justice.”
Joseph Harrison operated as a sole trader for several years before South East Commercials Ltd was incorporated in May 2020.
The company sold used cars and light motor vehicles, such as motorcycles.
In the report to creditors, Harrison stated that the first Bounce Back loan application was made by a third party on his behalf.
The Insolvency Service did not find evidence of a third party’s involvement.
He also stated that he did not know that only one successful loan application was permitted under the scheme.
However, the Insolvency Service has seen evidence that Harrison signed the declaration on his company’s second loan application, confirming that this was his first and only application.
He was disqualified for 12 years under sections 6 and 15A of the Company Directors Disqualification Act 1986.
