A Blackburn tour operator faces serious prison time after committing extensive Covid loan fraud that exploited pandemic support schemes. Raja Imtiaz, 52, received a 26-month sentence for dishonestly obtaining £100,000 in government-backed loans.
Understanding the Covid Loan Fraud Case
The Covid loan fraud involved two separate applications for £50,000 Bounce Back Loans. Imtiaz submitted these applications just weeks apart during June and July 2020. Furthermore, he falsely declared on his second application that it was his company’s only request.
How the Fraud Was Committed
Investigators discovered compelling evidence of deliberate Covid loan fraud. The Insolvency Service found that:
- Imtiaz applied to two different banks within weeks
- He received the first £50,000 before making the second claim
- His company, Al Fayroz Travel & Tourism Limited, was only entitled to one loan
Legal Consequences and Sentencing
Preston Crown Court delivered a strong message against Covid loan fraud on September 18th. Consequently, Imtiaz received a 26-month prison sentence. Additionally, the court disqualified him as a company director for six-and-a-half years.
Official Response to Loan Fraud
David Snasdell, Chief Investigator at the Insolvency Service, emphasized the seriousness of this Covid loan fraud. He stated that businesses were only allowed a single loan under the scheme’s crystal clear rules. Moreover, he warned that authorities will relentlessly pursue fraudsters who abused Covid support programs.
Broader Implications for Business Support
This case highlights the ongoing crackdown on Covid loan fraud across the UK. Authorities have pledged to continue investigating abuse of pandemic support schemes. Therefore, business owners should understand the severe consequences of fraudulent applications.
FAQs About Covid Loan Fraud
What is Covid loan fraud?
Covid loan fraud involves dishonestly obtaining government support loans intended for businesses struggling during the pandemic.
What are the penalties for Covid loan fraud?
Penalties include prison sentences, director disqualifications, and criminal records for serious cases.
How widespread is Covid loan fraud in the UK?
Authorities estimate billions of pounds were lost to fraudulent claims across various support schemes.
Can businesses still apply for Covid support loans?
Most Covid support schemes have now closed, but authorities continue investigating previous applications.
How can businesses report suspected Covid loan fraud?
Suspected fraud can be reported to the Insolvency Service or through official government reporting channels.
What should businesses do if they made errors in loan applications?
Businesses should proactively contact relevant authorities to correct any mistakes in their applications.
