Two flooring fitting directors have been banned from being company directors after they received and then spent a Covid Bounce Back Loan they were not eligible for.
Jim Darrah, 75, and Isobel Darrah, 73 of Carrickfergus, County Antrim were banned for 12 years – the maximum is 15 – for their actions as directors of J Flooring Global.
The company had ceased trading from 1 November 2019, but when the loan scheme was introduced in April 2000, they applied for and received a loan: which they spent on personal items.
High Court documents show that they withdrew £52,207.84 from the company bank account – including £49,891.44 of the loan.
J Flooring Global formally went into liquidation on 10 May 2022, owing creditors £50,610.18.
In place for 11 months, the loan scheme was designed to help small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover, with a maximum loan of £50,000. Loans were guaranteed by taxpayers and were interest free for the first year.
The Insolvency Practitioners Association estimates that 11% of all losses incurred through unpaid Bounce Back Loans are because of fraud.
Just over1.5million businesses shared £47bn under the scheme but £17bn is outstanding due to fraud and defaults, according to the Insolvency Service and National Investigation Service.
