Man disqualified from running a business for 11 years after scamming £50K in Covid Bounce Back Loan
A man has been banned from running a business for 11 years after he scammed £50,000 out of the government through the Covid business relief loans during the pandemic.
David Ocaya Okot, 40, was sole director of B&S News Ltd, which traded as a newsagent and convenience shop in Manor Lane, Lewisham.
Okot purchased the shop in 2014 and ran it successfully until 2020 when increased competition in the area and rising costs meant that the business was no longer viable. The shop closed in January 2020 after failing to find a buyer.
Investigators uncovered that Okot successfully applied for a £50,000 Bounce Back Loan for B&S News Ltd in July 2020, despite being ineligible as the government-backed loan was only available for businesses trading during the pandemic. This was after the company had stopped trading.
Further enquiries found that Okot caused B&S News Ltd to transfer close to £50,000 from the company bank account into his personal account.
The former convenience store owner said he was looking to relocate the business with the money but investigators found no evidence to support this claim.
Okot, from Deptford, received an 11-year disqualification from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.
Tom Phillips, assistant director at the Insolvency Service, said: “Bounce Back Loans were offered to financially support viable businesses through the pandemic. David Okot applied for a loan despite having closed down his business before the pandemic.
“Thanks to the work of our diligent investigators, we have removed [this] rogue director from the corporate arena. David Okot received [a] top-bracket disqualification, which should serve as a stark warning to other directors that there are serious consequences to those who have abused Bounce Back Loans.”
Pictured top: B&S Newsagents in Manor Road, Lewisham, in 2018 (Picture: Google Street View)
