Taxi driver jailed for raking in £130k from Covid loan scam!
Fraudster Busted for Faking Business Earnings
Nelson Clark, 34, a taxi driver from Bexley, has been locked up for two-and-a-half years after scamming the Government’s Covid Bounce Back Loan scheme out of £130,000. Clark grossly inflated his business income to secure the funds, duping banks in the process.
The Silver Birch Close resident was sentenced at Croydon Crown Court on Thursday, March 13, following his conviction for fraud by false representation.
Faking Figures to Snag Loans
In 2020, Clark applied for three Bounce Back Loans, exploiting a scheme designed to help struggling small businesses during the pandemic.
- First, he claimed his company, N Clark Taxis, had an annual turnover of £120,000—overstating real revenue by £70,000—and bagged £30,000 from a bank.
- Just two months later, he padded earnings further with two more loan applications under Nelson Clark Management and Rosewood Motors, each stating £200,000 revenue to pocket another £100,000.
Spent Cash for Personal Gain, Not Business
Authorities revealed Clark splurged the ill-gotten loan money on personal expenses, ignoring the scheme’s terms that the money be invested in the businesses.
“Nelson Clark deliberately targeted a scheme which was set up to support genuine small businesses through Covid. He made false representations not just once, but three times in a two-month period. His actions were clearly dishonest, and he made matters worse by spending the money for his own personal benefit.” — David Snasdell, Chief Investigator, Insolvency Service
Bankrupt & Facing Long-Term Restrictions
Clark was declared bankrupt in August 2021. In March 2022, he agreed to a 10-year Bankruptcy Restrictions Undertaking, barring him from borrowing more than £500 without revealing his bankrupt status.
Despite these limits, the fraudulent loans had already slipped through, triggering the criminal investigation and his eventual prosecution.
Ongoing Crackdown on Covid Loan Fraud
This case forms part of a wider crackdown on Bounce Back Loan scams that saw millions in public funds misused during the Covid crisis.
“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.” — David Snasdell, Chief Investigator, Insolvency Service
