A fraudster has avoided jail after he falsely claimed £30,000 in Covid loans from the Government.
Sohail Cheema, 35, of Wolverhampton, pleaded guilty to fraud and money laundering related to Covid Bounce Back loans and was handed a two-year suspended sentence.
The Insolvency Service said he falsely inflated the turnover of a company he set up to find agency work as a bus driver to £60,000.
He also applied for two separate bounce-back loans in 2020, when businesses across the UK were only entitled to one.
The Covid Bounce Back loans were set up by the Government to help small and medium businesses to get back on their feet following the global pandemic.
Cheema was disqualified as a company director for 10 years and was ordered to complete 150 hours of unpaid work.
His business, Sohail Cheema Limited, which was liquidated in May 2021, had set up a new banking account with the “sole purpose of applying for a Bounce Back Loan in May 2020,” the IS confirmed.
The IS confirmed it was looking to recover the funds claimed by Cheema under the Proceeds of Crime Act.
Cheema was sentenced at Wolverhampton Crown Court on Monday, June 29
|
A spokesman for the agency confirmed he had opened a business account for the funds.
They added: “Both loans were transferred out of Cheema’s business accounts on the day they were received, with none of the money used legitimately.”
The funds formed part of a £90,000 payment to a third party, which was made in August 2021.
David Snasdell, Chief Investigator at the IS, said: “Sohail Cheema deliberately made two fraudulent applications for Bounce Back Loans, knowing full well he was not entitled to either.
Sohail Cheema took advantage of schemes put in place to help small businesses after Covid-19 lockdowns
|
GETTY
“He overstated his company’s turnover and, on the same day the money arrived, transferred it all out of his business accounts.
“Not a single penny was used to support his business as the scheme required.
“Bounce Back Loans were a lifeline for genuine businesses struggling through the pandemic, funded by the taxpayer.
“This case is a further reminder that the Insolvency Service will continue to pursue those who exploited Covid support schemes, and that doing so carries serious consequences.”
After opening his business account, he contacted his bank multiple times in the following weeks, asking when he could apply for the loan, claiming his company was in desperate need of Covid support.
While waiting to hear back from the first bank, he opened a second account to create a second application.
The money which was removed from his bank account was sent to his wife, who transferred the £90,000 to a third party.
His claimed turnover, of £60,000, was more than his business ever made.