A Devon businessman has been hit with 13 years of stringent bankruptcy restrictions after fraudulently claiming £250,000 in government-backed Bounce Back Loans intended to support businesses during the COVID-19 pandemic. Matthew Littlechild, 37, of Mount Pleasant Road in Newton Abbot, overstated the turnover of five businesses, including a Totnes pub, to secure the maximum £50,000 loan for each one.
Littlechild’s businesses included Matthew Littlechild Business Consultancy, Pig Out (an event catering business), Treby Essentials (a home food delivery service), ML Properties (a cleaning business), and the Sea Trout Inn, a pub in Staverton, Totnes. He had set up four of these businesses between April 2018 and November 2019, with the pub venture beginning in late 2019.
The Bounce Back Loan scheme, introduced in 2020 to support businesses struggling due to the pandemic, allowed companies to borrow between £2,000 and £50,000 based on their 2019 turnover. Littlechild received loans for all five businesses but declared bankruptcy in January 2024.
The official receiver, investigating the cause of his bankruptcy, found that Littlechild had overstated the turnover of each business to maximize the loans. The Secretary of State for Business and Trade accepted a Bankruptcy Restrictions Undertaking (BRU) from Littlechild on 21 August 2024, extending his original bankruptcy restrictions by 13 years.
Under the terms of the BRU, Littlechild is barred from acting as a company director without court permission, borrowing more than £500 without disclosing his restrictions, and holding certain positions in public organizations. The Official Receiver is continuing to review potential asset realizations as part of the ongoing investigation into Littlechild’s financial dealings.
This case highlights the significant consequences of abusing government support schemes, with authorities keen to ensure that public funds are used for their intended purpose: to support businesses in genuine need.
