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Ilhan Kekec, the owner of a Turkish restaurant, has been sentenced to two-and-a-half years in prison for fraudulently obtaining a Covid Bounce Back Loan and unlawfully dissolving his company without notifying creditors. The verdict was delivered at Isleworth Crown Court on Monday, March 18, where Kekec was also banned from serving as a company director for three years.
Kekec’s conviction follows a trial where he was found guilty by a jury in December 2023 of charges related to fraud by false representation and failing to inform creditors of a voluntary company strike-off.
Julie Barnes, Chief Investigator at the Insolvency Service, condemned Kekec’s actions, stating, “Ilhan Kekec saw an opportunity in the early weeks of the pandemic to receive a Covid loan which he never intended to repay. His actions were thoroughly dishonest, and at no point did he ever own up to his crimes.”
The court heard that Kekec, residing in Abbotts Drive, Waltham Abbey, Essex, fraudulently secured a £30,000 Covid Bounce Back Loan in May 2020 for his business, Hizirali Ltd, falsely declaring a turnover of £125,000. Hizirali Ltd operated the Derwish Kebab Restaurant within the East Shopping Centre on Green Street, Forest Gate, London. However, the restaurant’s trading was severely impacted by the Covid lockdown, having operated for only three weeks before the restrictions were imposed.
Instead of utilizing the loan for business purposes, Kekec withdrew the funds in cash and admitted to Insolvency Service investigators that he used the money to settle personal debts. Furthermore, Kekec applied to dissolve his company in June 2020 without fulfilling his obligation to inform creditors within the prescribed timeframe, thereby violating company law.
For his fraudulent actions, Kekec was sentenced to concurrent terms of two-and-a-half years each for two counts of fraud by false representation and two years and four months for offences under the Companies Act.
Additionally, confiscation proceedings against Kekec have been initiated and are scheduled to proceed later this year.
This case underscores the severity of fraudulent conduct related to Covid relief schemes and the importance of upholding transparency and accountability in business practices, especially during times of crisis.
