Covid loan fraudster slapped with tag and curfew

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A 41-year-old delivery driver has been sentenced after claiming a £20,000 Covid loan he was not entitled to before blowing the funds on drugs and gambling

Amraiz Mahmood, 41, from High Wycombe inflated the turnover of his company, claiming he had a turnover of £81,000 as a self-employed delivery driver. However, he overstated his turnover by over £65,000 as his accounts for 2018-19 showed an income of £15,018.

Mahmood filed for his own bankruptcy, stating he had just £100 in the bank, while he had just withdrawn almost £40,000 from his bank account to spend on home renovations. He also claimed to owe £200,000.

Mahmood said that he withdrew the funds in cash as he knew his bank accounts would be frozen once the bankruptcy order went through. However, the invoices for the renovation work paid for in this cash were dated after the bankruptcy date.

This £40,000 came from separate bank loans which were not Covid related.

Mark Stephens, chief investigator at the Insolvency Service, said: ‘Amraiz Mahmood hugely inflated his turnover to secure taxpayers’ money he did not deserve. He then clearly failed to use the loan as it was intended.

‘Bounce Back Loans were designed to support small businesses through the pandemic. They were not intended to be used for personal gain and the Insolvency Service will not hesitate to take action when we identify such blatant abuse of the scheme.

‘Mahmood also concealed tens of thousands of pounds in assets from the Official Receiver when he was declared bankrupt.’

Mahmood signed an eight-year Bankruptcy Restrictions Undertaking in March 2022, restricting him from being able to borrow more than £500 without disclosing his bankrupt status.

In addition, he was sentenced to 10 months in prison, suspended for two years at High Wycombe Magistrates’ Court on Friday 21 February. Along with this he must abide to a 12-month curfew between 9pm and 7:45am and will be fitted with an electric tag.

The Insolvency Service is trying to recover funds from Mahmood.

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