A taxi driver from Bexley has been jailed after fraudulently securing £130,000 through the Government’s Covid Bounce Back Loan scheme by significantly inflating his business income.
Nelson Clark, 34, of Silver Birch Close, Bexley, was sentenced to two-and-a-half years in prison at Croydon Crown Court on Thursday (March 13) after being convicted of fraud by false representation.
Clark applied for three loans in 2020, exploiting the government-backed scheme intended to help struggling small businesses during the pandemic. In his first application, he falsely claimed his taxi business, N Clark Taxis, had an annual turnover of £120,000, overstating his actual revenue by approximately £70,000, and secured £30,000 from one bank.
Just two months later, he fraudulently obtained an additional £100,000 through two further loan applications, this time under the names Nelson Clark Management and Rosewood Motors. In those applications, Clark claimed each business generated £200,000 in revenue, further exaggerating his earnings to obtain funds he was not entitled to.
Money Spent for Personal Gain
Authorities say Clark spent the funds on personal expenses, rather than investing them into the businesses as intended under the scheme’s terms.
David Snasdell, Chief Investigator at the Insolvency Service, said:
“Nelson Clark deliberately targeted a scheme which was set up to support genuine small businesses through Covid. He made false representations not just once, but three times in a two-month period. His actions were clearly dishonest, and he made matters worse by spending the money for his own personal benefit.”
Bankruptcy and Restrictions
Clark was declared bankrupt in August 2021, and in March 2022, he agreed to a 10-year Bankruptcy Restrictions Undertaking, which bars him from borrowing more than £500 without declaring his bankrupt status.
The court heard that despite these restrictions, the fraudulent loans had already been obtained and misused, leading to the criminal investigation and subsequent prosecution.
Crackdown on Pandemic Loan Fraud
The case is part of an ongoing effort by authorities to crack down on Bounce Back Loan abuse, which saw widespread misuse of public funds intended to keep businesses afloat during the height of the Covid-19 crisis.
Mr Snasdell added:
“Five years on from the start of the pandemic, the Insolvency Service remains committed to taking action against the fraudsters who cynically applied for money they were not entitled to during a national emergency.”
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