A taxi driver from Bexley has been jailed after fraudulently securing £130,000 through the Government’s Covid Bounce Back Loan scheme by significantly inflating his business income.
Nelson Clark, 34, of Silver Birch Close, Bexley, was sentenced to two-and-a-half years in prison at Croydon Crown Court on Thursday (March 13) after being convicted of fraud by false representation.
Clark applied for three loans in 2020, exploiting the government-backed scheme intended to help struggling small businesses during the pandemic. In his first application, he falsely claimed his taxi business, N Clark Taxis, had an annual turnover of £120,000, overstating his actual revenue by approximately £70,000, and secured £30,000 from one bank.
Just two months later, he fraudulently obtained an additional £100,000 through two further loan applications, this time under the names Nelson Clark Management and Rosewood Motors. In those applications, Clark claimed each business generated £200,000 in revenue, further exaggerating his earnings to obtain funds he was not entitled to.
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Money Spent for Personal Gain
Authorities say Clark spent the funds on personal expenses, rather than investing them into the businesses as intended under the scheme’s terms.
David Snasdell, Chief Investigator at the Insolvency Service, said:
“Five years on from the start of the pandemic, the Insolvency Service remains committed to taking action against the fraudsters who cynically applied for money they were not entitled to during a national emergency.”
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