Lincolnshire Eel Biz Shut Down Over Loan Fraud
A Lincolnshire business, The Eel Screen Company Ltd, has been slammed shut after a government probe uncovered dodgy dealings in securing pandemic loans.
High Court Closes Company Amid Fraud Claims
The Boston-based firm, specialising in eel protection screens, was officially wound-up at Manchester High Court on Tuesday 2 July. Investigations by the Insolvency Service revealed the company misled officials when applying for two significant government-backed loans during the Covid crisis.
Fake Figures for £275,000 of Covid Loans
- In 2020, The Eel Screen Company claimed a £50,000 Bounce Back Loan, stating a £320,000 turnover – but bank records showed just over £49,000.
- They never repaid a penny, despite loan conditions requiring repayments.
- In 2022, the firm sought £225,000 through the Recovery Loan Scheme with suspicious finances and fake bank statements.
- Of that £225,000, £148,000 was withdrawn in cash. Only one repayment has been made, leaving over £244,000 owed including interest.
Insolvency Chief Vows Crackdown on Loan Cheats
“Our investigations revealed concerns that The Eel Screen Company was being used as a vehicle to fraudulently obtain significant, government-backed loans during the pandemic,” said David Hope, Chief Investigator at the Insolvency Service.
“Bounce Back Loans were designed for trading businesses hit by Covid, based on accurate financial statements. We will not hesitate to have companies wound-up in the public interest.”
Directors Fumble Over Company’s True Business
Former directors told investigators the business originally installed screens to protect river eels but later pivoted to drainage and construction. Both current and former directors have failed to produce requested accounting records to the Insolvency Service.
The Official Receiver has now been appointed liquidator of The Eel Screen Company, ensuring the matter is fully dealt with.
