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Man Sentenced for Fraud After Misusing Covid Loan Funds

James Todd, a 37-year-old man, has been sentenced to 18 months in prison (suspended for two years) after defrauding taxpayers of £50,000 by misusing funds from a Covid loan. The sentencing took place at Sheffield Crown Court on Monday, May 20.

Man Sentenced For Fraud After Misusing Covid Loan Funds

Todd’s fraudulent actions involved inventing the turnover for a fictitious business that was not trading when the pandemic began, all while he was employed full-time. Instead of using the loan for its intended purpose, Todd upgraded his car and sold his previous vehicle within weeks.

Man Sentenced For Fraud After Misusing Covid Loan Funds

David Snasdell, Chief Investigator at the Insolvency Service, emphasised the severity of Todd’s actions, stating, “This was taxpayers’ money, and the Insolvency Service will not hesitate to take action against those who have so flagrantly stolen from the public purse.”

Man Sentenced For Fraud After Misusing Covid Loan Funds

The investigation revealed that Todd applied for a £50,000 Bounce Back Loan in July 2020, claiming his Pro Detailing business had an annual turnover of £255,000. However, Pro Detailing was not trading, and Todd was employed full-time during the pandemic.

Man Sentenced For Fraud After Misusing Covid Loan Funds

Within six days of receiving the loan, Todd transferred £32,500 to his personal account, withdrew £1,250, and sent an additional £16,500 to associates. Further scrutiny of Todd’s bank account showed payments totalling £11,929 to a car finance company for his BMW. He also sold his old vehicle in early August for £5,220.

Man Sentenced For Fraud After Misusing Covid Loan Funds

As part of his sentence, Todd accepted a 10-year Bankruptcy Restrictions Undertaking, preventing him from borrowing more than £500 without disclosing his bankrupt status. Additionally, he cannot act as a company director without court permission.

Man Sentenced For Fraud After Misusing Covid Loan Funds

Man Sentenced For Fraud After Misusing Covid Loan Funds

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