Lancashire plasterer duped Bounce Back Loan scheme to the tune of £50,000
£50k Loan Snagged by Fake Figures
Jordan Allen, 39, from Oswaldtwistle, faked his plastering firm’s turnover to bag a massive Covid Bounce Back Loan. In 2020, Allen’s business, PlasteRend, was only eligible for about £5,000. Instead, he claimed a whopping £225,000 turnover – when it was actually just over £20,000. That bluff landed him a £50,000 loan, ten times what he was entitled to.
Cash Wasted on Gambling and Groceries
The taxpayer cash meant to support struggling businesses ended up funding Allen’s own lifestyle. He drained £17,000 on personal expenses over six weeks in early 2021. The splurge included groceries, gambling, fantasy football, raffle tickets, and nearly 40 cash withdrawals—all from the government loan.
Justice Delivered at Preston Crown Court
On 20 January, Allen was sentenced to 16 months in prison, suspended for two years. His punishment also includes:
- 200 hours of unpaid work
- 10 days of rehabilitation activities
- £3,600 compensation payment
He was declared bankrupt in September 2021 and slapped with a 10-year Bankruptcy Restrictions Undertaking, stopping him from borrowing without full disclosure.
Investigation Slams Allen’s False Claims
“Jordan Allen made a blatantly false statement by exaggerating the turnover of his business. He then compounded this by spending taxpayers’ money on personal expenses instead of supporting his business through the pandemic.” – David Snasdell, Chief Investigator, Insolvency Service
Allen tried to justify his fake figures by claiming future business growth, but Covid loan rules clearly require actual turnover data.
A Stark Warning on Loan Fraud
This case sends a strong message: twisting government support for personal gain will not be tolerated. Fraudsters face severe consequences, reminding everyone that pandemic relief funds must be used honestly to help businesses survive.
