A delivery driver who fraudulently secured over £20,000 in Covid-19 support funds and squandered it on drugs, gambling, and home renovations has been handed a suspended sentence and a curfew.
Amraiz Mahmood, 31, of Booker Lane, High Wycombe, illegally obtained a £20,250 Bounce Back Loan in 2020 by falsely inflating his declared turnover as a self-employed delivery driver and courier. He claimed his 2019 turnover was £81,000, whereas official records showed it was only £15,018.
The Bounce Back Loan Scheme, introduced during the Covid-19 pandemic, was intended to support struggling small businesses. However, Mahmood spent the funds irresponsibly, later admitting to spending the majority on recreational drugs and gambling.
In addition to the misused Covid support funds, Mahmood also secured a £25,000 non-Covid-related loan just before filing for his own bankruptcy in May 2021. He proceeded to withdraw nearly £40,000 in cash, claiming it was for urgent home renovations. He later admitted to making these withdrawals knowing that his assets would soon be frozen.
Despite having nearly £40,000 in cash, Mahmood declared only £100 in assets when filing for bankruptcy, while reporting liabilities exceeding £200,000.
Court Proceedings and Sentencing
Mahmood appeared at High Wycombe Magistrates’ Court on Friday, 21 February, where he pleaded guilty to charges of fraud and concealing assets. The court sentenced him to 10 months in prison, suspended for two years, and imposed a 12-month daily curfew from 9 PM to 7:45 AM, which will be monitored with an electronic tag.
Mark Stephens, Chief Investigator at the Insolvency Service, condemned Mahmood’s actions, stating:
“Amraiz Mahmood hugely inflated his turnover to secure taxpayers’ money he did not deserve. He then clearly failed to use the loan as it was intended.
Bounce Back Loans were designed to support small businesses through the pandemic. They were not intended to be used for personal gain, and the Insolvency Service will not hesitate to take action when we identify such blatant abuse of the scheme.”
Concealment of Assets
Further investigations revealed that Mahmood had attempted to deceive the Official Receiver by hiding his substantial cash withdrawals and failing to declare them during his bankruptcy proceedings. Invoices for the house renovations he cited as the reason for his withdrawals were dated after his bankruptcy filing, indicating deliberate misrepresentation.
In March 2022, Mahmood signed an eight-year Bankruptcy Restrictions Undertaking, prohibiting him from borrowing more than £500 without disclosing his bankrupt status.
Ongoing Efforts to Recover Funds
Efforts are now underway to recover the funds Mahmood fraudulently obtained. The Insolvency Service has emphasized the importance of ensuring that individuals who exploited Covid relief schemes are held accountable.
The case serves as a reminder of the stringent measures being taken to clamp down on Covid-19 loan fraud and protect taxpayer money.
