Contractor must repay £10k Covid loan within a week

Contractor must repay £10k Covid loan within a week

Feb 22, 2024

A self employed building contractor avoided jail but must repay £10,000 within one week after fraudulently applying for a Covid bounce back loan

Adam Lennard, 58, inflated the turnover of his East London Property Maintenance business to secure the £20,000 loan and then used the funds for his own personal use.

He was sentenced to eight months in prison, suspended for 15 months, after appearing at Snaresbrook Crown Court on 5 February.

Lennard applied for a £20,000 loan in August 2020, claiming the annual turnover of his East London Property Maintenance business was £80,000.

The real turnover of the company, based in Smeaton Road, Woodford Green, was under £50,000 in 2019.

Lennard also fraudulently declared he would use the funds for his business in his application.

During interviews with the Insolvency Service, he admitted to using the loan for his personal use, transferring the money to his own bank account between August and November 2020.

Julie Barnes, chief investigator at the Insolvency Service, said: ‘Adam Lennard abused the bounce back loan scheme, backed by taxpayers to support businesses through the pandemic.

‘He overstated the turnover for his business, used the funds for his own personal and family use, and had no intention of ever paying the money back.

‘The Insolvency Service will not hesitate to prosecute cases like this and Lennard now has a criminal conviction as a consequence of his fraudulent actions.’