Indian-origin businessman jailed for loan fraud in UK
Darpan News Desk IANS, 16 Feb, 2023 02:41 PM
London, Feb 16 (IANS) An Indian-origin businessman has been sentenced to 12 months imprisonment in the UK for having abused an interest free loan scheme provided to businesses impacted by the Covid-19 pandemic.
Kulwinder Singh Sidhu, 58, from Stanwell, pleaded guilty to offences under the Companies Act and the Fraud Act, having abused the Bounce Back Loan financial support scheme in 2020.
He was director of Wavylane Ltd, a haulage company based in Stanwell, and which had been trading since 2010. "Our action has ensured repayment of the loan money and taxpayers have not been left out of pocket," Julie Barnes, Chief Investigator at the Insolvency Service, said.
"Any other company directors who might be tempted into dissolving their business to try to keep public money they are not entitled to, should be aware they are risking a lengthy prison term," she added.
On 9 June, 2020 Sidhu applied for a 50,000 pound Bounce Back Loan from his bank on behalf of his business. Under the Bounce Back Loan scheme, genuine businesses impacted by the pandemic could take out interest-free taxpayer-backed loans of up to a maximum of 50,000 pound.
The loan was paid into the company bank account and on June 26, 2020 Sidhu filed paperwork with Companies House to have the business dissolved, having transferred the funds to his personal bank account within two days of receipt.
The striking-off application to dissolve the company was explicit that interested parties and creditors, such as a bank with an outstanding loan, must be notified within seven days of making an application to dissolve a company. The form also highlighted that failure to notify interested parties is a criminal offence, however Sidhu did not follow these rules.
The company was dissolved in October 2020, and was subsequently identified as likely Bounce Back Loan fraud by the Insolvency Service and cross-government counter-fraud systems.
The Insolvency Service investigation found that Sidhu had fraudulently overstated the company turnover in the Bounce Back Loan application, and within two days of receiving the money he had transferred it to his personal account before dispersing the funds to his son and another company.
He pleaded guilty to charges in December last year, and was sentenced on February 13, this year at Guildford Crown Court.
The court imposed a confiscation order for 50,000 pound, which Sidhu has paid in full. In addition to the custodial sentence, he was also disqualified as a company director for six years.
Amit Patel, 45, was gunned down at around 10 a.m. on Monday in Columbus during an apparent robbery as he was making a deposit at the bank, TV station WTVM reported quoting the county coroner.
Within hours of the World Health Organization designating Omicron a variant of concern late last month, Moderna issued a press release telling the public it was already working on a vaccine booster that could target the new threat.
Beginning next week, travelers heading to the U.S. will be required to show evidence of a negative test for the virus within one day of boarding their flight. The previous period was three days.
The suspect in a Michigan school shooting will face charges of terrorism and first-degree murder following a rampage that left four students dead and seven injured. He has pleaded not guilty. Police are yet to identify a motive in the attack.
David is accused of fatally shooting the five victims aged 11, 7, 2, 1 and 51 at the family home on the 3,500 block of Garnet Lane in Lancaster in northern Los Angeles County, according to the news release.
The Omicron variant was first reported to the WHO by South Africa last week. So far, several countries and regions have confirmed cases of infection with Omicron. Dozens of countries have already tightened travel measures, and even suspended flights, Xinhua news agency reported.
