* Fraudster used government-backed Bounce Back Loan for personal use
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* Todd was in full time employment at the start of the pandemic and when he applied for the loan in
* He received the money in mid-July and had spent all but £245 of it on personal purposes by the end of the month
A man who cheated taxpayers out of £50,000 by using the funds from a Covid loan to replace his car has been sentenced for fraud.
Todd was also ordered to complete 240 hours of unpaid work and pay compensation of £2,000 at a rate of £100 a month.
Todd then used the loan entirely for personal purposes, upgrading his car and selling his previous vehicle within just a few weeks.
This was taxpayers' money and the Insolvency Service will not hesitate to take action against those who have so flagrantly stolen from the public purse.
Todd, of Milnrow View, Sheffield, applied for the £50,000 Bounce Back Loan in
However, Insolvency Service investigations revealed that Pro Detailing was not trading and that Todd was actually in full-time employment both at the start of the pandemic and when he made his loan application.
Todd transferred £32,500 of the funds to his own personal account within just six days of receiving the loan. He also withdrew £1,250 and transferred a further £16,500 to associates in the same period.
Analysis of Todd's bank account by the Insolvency Service revealed he made two payments totalling £11,929 to a car finance company for his
Todd accepted a 10-year Bankruptcy Restrictions Undertaking in
The bankruptcy restrictions also mean he cannot act as a company director without permission from a court.
Further information
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* Sentenced for: Fraud by false representation, contrary to section 2 of the Fraud Act 2006
* Read more about the Bounce Back Loan Scheme and the action the Insolvency Service can take if it finds misconduct
* Guidance on the main statutory consequences from a Bankruptcy Restrictions Order or Undertaking
* Further information about the work of the Insolvency Service, and how to complain about financial misconduct.
Published
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