Hertfordshire businessman Ricky Harrison jailed for over three years after raking in £200k of taxpayers’ cash through Covid Bounce Back Loan fraud.
Faking Figures: How Harrison Scammed £200k
Ricky Harrison, 41, from Hertford Heath, was found guilty at St Albans Crown Court of fiddling his company turnover figures to bag four Bounce Back Loans worth £50,000 each. He used fake businesses to claim a total of £200,000 during the pandemic.
- Hackney Works Ltd: Claimed £245,000 turnover — no actual trading
- Tower Hamlets Works Ltd: Claimed £232,000 turnover — no activity
- Ricky Harrison Holdings Ltd: Claimed £315,000 turnover — no trading
- Newham Works Ltd: Inflated turnover from £64,000 to £215,000
Authorities say only one of these companies traded, and the rest were effectively empty shells used to dupe the government.
Squandering Public Cash: Private Jets, Cars, and Dodging Repayments
Instead of boosting struggling businesses, Harrison funnelled the loot into his own pockets. He splashed out £85,000 on a car in June 2020 — blatantly breaking scheme rules.
He made only one loan repayment of £833 before trying to shut down his companies and vanish.
On 25 April 2025, Harrison was sentenced to three years and two months behind bars and banned from being a company director for 10 years.
“Ricky Harrison’s actions were deeply cynical. He exploited an opportunity to help himself to taxpayers’ money during what was a national emergency,” said David Snasdell, Chief Investigator at the Insolvency Service.
UK Faces £26 Billion Covid Loan Fraud Crisis
The Bounce Back Loan scheme was a lifeline for many but ripe for abuse due to loose checks. An estimated £4.9 billion — 11% of loans — was swindled through fraud.
- £26 billion total potential losses, including defaults
- 752 directors disqualified for Covid loan fraud
- 49 arrests linked to Covid loan scams so far (May 2024)
The government has poured £100 million into fighting fraud and reclaiming public money, with HMRC alone recovering £743 million in overpaid grants.
“This was public money, and we will continue to prosecute those who made such obvious false representations.”
Warning to Businesses: Keep Records and Stay Legit
Firms are urged to keep clear records of any Covid loan spending and ensure they meet all eligibility rules. Those unsure about compliance should seek help from experts like Real Business Rescue.
Suspected fraud can be reported through the GOV.UK website.
