A mobile mechanic has been disqualified from being a company director for 10 years after he fraudulently took a £40,000 bounce back loan (BBL).
Raitis Dzerkalis, from Coventry, was given the 10-year disqualification from the Insolvency Service, which began on 28 February 2022 and runs until 27 February 2032.
The ban means that Dzerkalis cannot directly, or indirectly, be involved in the promotion, formation, or management of a company, without the permission of the court.
Dzerkalis was the sole director of RDZ Solution Ltd, which was incorporated in 2015 and provided a mobile vehicle breakdown service. In September 2021, the company was placed into voluntary liquidation which triggered an investigation by the Insolvency Service.
The investigation revealed that in June 2020 Dzerkalis applied for and secured £40,000 through the bounce back loan scheme.
However, the company’s accounts ending October 2019 showed a turnover of just £12,240, but Dzerkalis fraudulently stated the turnover as £162,240. In reality, the most the company was eligible for under the scheme was £3,060.
The Insolvency Service found that Dzerkalis had spent the full loan amount for his own personal use, and not for legitimate business requirements, which breached the terms of the scheme.
The Insolvency Service is recovering the funds with £8,000 recovered to date.
Dave Elliott, chief investigator at the Insolvency Service said: ‘Covid support schemes were a lifeline to businesses across the UK protecting jobs and preserving businesses.
‘As this case shows the Insolvency Service will take swift firm action against directors who sought to abuse the scheme.’
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