28th Jun, 2022

Coventry mechanic banned from being company director after fraudulently claiming £40,000 Covid Bounce Back Loan

Coventry Editorial 11th Mar, 2022 Updated: 11th Mar, 2022

A MOBILE mechanic from Coventry has been disqualified from being a company director for ten years after receiving a £40,000 bounce back loan he was not entitled to.

Raitis Dzerkalis, 32, was sole director of RDZ Solution Ltd, which was incorporated in 2015 and was registered at an address in Coventry. RDZ provided a mobile vehicle breakdown service.

In June 2020, however, Raitis Dzerkalis applied for and secured £40,000 through the Bounce Back Loan scheme.

The company’s accounts ending October 2019 showed 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.

He then spent nearly the full loan amount for his own personal benefit and not for legitimate business requirements, breaching the terms of the Bounce Back Loan scheme.

Recovery of the funds is ongoing with £8,000 recouped to date.

The Secretary of State for Business, Energy and Industrial Strategy accepted a disqualification undertaking from Raitis Dzerkalis after he admitted securing the Bounce Back Loan fraudulently. His ban began on February 28 to February 27, 2032.

The disqualification prevents him from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court.

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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