Man jailed over £150k Covid Bounce Back loan fraud

A businessman has been jailed after admitting claiming £150,000 in Covid Bounce Back loans he was not entitled to.

Matloob Hussain, 49, was also running a clothes wholesaler and online retailer despite having been disqualified from acting as a company director for 10 years in 2021.

The Insolvency Service said Hussain, of Eccles, Salford, applied for three loans across three companies in 2020 when the government was offering support to help businesses survive lockdown measures imposed during the coronavirus pandemic.

He admitted three counts of fraud and one of acting as a director while disqualified and was jailed for two years and four months at Manchester Crown Court on 25 March, it added.

The government agency said Hussain was the director of Dynasty Group Ltd, an Eccles-based wholesaler of clothes and footwear, and NA Collection Mcr Ltd, based in Manchester, which provided online sales of products such as confectionery.

Each business was entitled to one loan, but Hussain claimed a second £50,000 loan for both businesses, while overstating the turnover of NA Collection.

The third Bounce Back Loan related to a sole-tradership, but Hussain again overestimated the turnover and provided a false statement that the money would be used to the benefit of the business.

Insolvency Service chief investigator Darren Bailey said: "Matloob Hussain clearly thought he was above the law and blatantly disregarded the rules of a loan scheme designed to help struggling businesses.

"By applying for multiple loans and continuing to act while disqualified, he caused significant loss to the public purse and undermined the insolvency system."

The Insolvency Service said it would also look to recover the loans via the Proceeds of Crime Act, in addition to about £27,000 already returned.

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