Devon Businessman Slapped with 13-Year Bankruptcy Ban for COVID Loan Scam
A Devon entrepreneur has been nailed for scamming £250,000 in Bounce Back Loans meant to help businesses during the pandemic. Matthew Littlechild, 37, from Newton Abbot, exaggerated turnover figures on five businesses—including a Totnes pub—to grab the full £50,000 loan for each.
Fake Figures Land Littlechild in Hot Water
Between May and June 2020, Littlechild inflated the income of his companies to max out government loans designed to support struggling firms. After an investigation uncovered the fraud, he agreed to a thirteen-year Bankruptcy Restrictions Undertaking (BRU) imposed by the official receiver.
These restrictions bar him from acting as a company director without court approval and forbid borrowing over £500 without declaring his bankruptcy until August 2037.
Official Receiver Condemns Loan Fraud
Samantha Crook, Deputy Official Receiver, said: “Matthew Littlechild repeatedly took advantage of a scheme designed to help businesses in genuine need and abused taxpayers’ money when the country was facing one of its toughest times. We are pleased these lengthy bankruptcy restrictions will protect the public from further financial harm.”
The Businesses Behind the Scam
- Matthew Littlechild Business Consultancy
- Pig Out (event catering)
- Treby Essentials (home food delivery)
- ML Properties (cleaning service)
- The Sea Trout Inn, a pub in Staverton, Totnes
Four of these companies were launched between 2018 and late 2019, with the pub joining the stable shortly after.
Government Takes a Tough Stand
The Bounce Back Loan scheme was a lifeline for many UK firms, offering loans from £2,000 to £50,000 based on 2019 turnover. Littlechild cashed in five loans but was forced into bankruptcy in January 2024.
The Secretary of State for Business and Trade accepted the BRU on 21 August 2024, lengthening Littlechild’s bankruptcy restrictions by 13 years.
He is forbidden from taking company directorships without court approval, borrowing more than £500 without declaring his status, and holding public positions. Officials continue probing his assets as the investigation rolls on.
Warning to All Loan Fraudsters
This case sends a loud message: ripping off government Covid support won’t be tolerated. Public funds are strictly for businesses in genuine need—not for fraudsters playing the system.
