Pair banned for fleecing Covid scheme

TWO men who pocketed almost £60,000 after abusing a Covid loan scheme for struggling businesses have been banned from running companies.

Junaid Dar, from Birmingham, and David Michael Godderidge, from Tamworth, falsely applied for tens of thousands of pounds after duping government officials into thinking they were entitled to support.

They have now been banned from running companies after deceitfully claiming cash as part of the national Bounce Back Loan Scheme, which helped smaller business access cash quicker during the outbreak.

Sue Macleod, for the Insolvency Service, said: “Bounce Back Loans were made available for trading businesses adversely affected by the pandemic and were issued based on accurate financial statements. Both Dar and Godderidge cynically applied for loans far greater than they were entitled to and clearly thought they could get away it.

“Thankfully, our interventions uncovered their abuse and their restrictions will prevent them from abusing their position in the future.”

Dar was investigated by the Insolvency Service after his company JDarPT Ltd entered into liquidation last July. Investigators discovered Dar legitimately applied for a loan after submitting accurate financial statements and received £13,000 in May 2020.

But the 31-year-old gym operator also applied for extra loans at two separate financial institutions. In total the company received a further £32,500 in loans which it was not entitled to. Dar has now been banned from running companies for 11 years.

In a separate case, Godderidge, 40, applied for his own bankruptcy last October and declared himself as a self-employed roofer. The Official Receiver at the Insolvency Service assessed his assets to make payments to creditors but found out he had provided incorrect information to obtain a larger loan than he was entitled to in September 2020.

He had instructed a third party to make the loan application on his behalf using inflated turnover figures before spending the £13,000 loan on gambling in just three weeks.

His bankruptcy restrictions have since been extended for seven years. It means the 40-year-old is limited to what credit he can access and he cannot act as a company director without the permission of the court.

The liquidator and trustee in bankruptcy are now assessing if Dar and Godderidge can repay the funds, the Insolvency Service said.