Shock Bounce Back Loan Scam Busted: Director Banned for 11 Years
Selvendran Ramar, the sole director of SJSA Ltd, has been slapped with an 11-year ban after wrangling a £45,000 Bounce Back Loan his company had no right to claim. SJSA Ltd claimed to supply nursing staff to hospitals and care homes but was barely trading when the pandemic hit.
Loan Scheme Rules Flouted at the Start
SJSA Ltd was set up on 30 March 2020—after the Bounce Back Loan (BBL) scheme cutoff date of 1 March 2020 for eligibility. This made the company instantly ineligible for the loan. But Ramar fibbed about his firm’s turnover, claiming £180,000 a year when in reality SJSA Ltd pulled in just £5,500 in its first three months.
Cash Stolen for Personal Use
After the £45,000 BBL hit SJSA Ltd’s account, Ramar acted fast. Within four days, he siphoned £35,000 straight into his personal account and sent the remaining £10,000 to a family member. The company went belly up in September 2021 with the entire £45,000 loan listed as debt.
Insolvency Service Acts, Director Disqualified
The Insolvency Service launched an investigation after the liquidation. They recovered £25,000 of the loan, but Ramar was caught red-handed. He didn’t contest the charges and accepted an 11-year disqualification starting from 7 December 2022.
“Not only was Selvendran Ramar’s company not trading by the required 1 March 2020 date and therefore not entitled to receive the Bounce Back Loan, but he then tried to divert the funds for his personal use,” said Lawrence Zussman, Deputy Head of Company Investigations.
“The purpose of the Bounce Back Loan scheme was that businesses were meant to utilise the monies specifically for the ‘economic benefit of the business’ which was clearly not the case here.”
