Automotive vendor banned for 12 years over Covid mortgage abuse
Joseph Harrison, director of South East Commercials, has been disqualified from appearing as an organization director for 12 years after receiving a Covid mortgage his enterprise was not entitled to.
The Insolvency Service introduced that Harrison, 38, previously of Wrotham, Kent and now residing in Spain, misused the federal government’s Covid Bounce Again Mortgage Scheme by making use of for 2 loans totalling £90,000 for his firm.
Companies have been solely permitted to obtain one such mortgage beneath the scheme.
- Insolvency Service clamps down with powerful disqualification and compensation order
- Supplier banned for 12 years after fraudulently securing two Covid Bounce Again Loans price £90,000
- Ordered to repay over £38,000 after second mortgage utility uncovered as deceitful
Joseph Harrison, director of South East Commercials, has been disqualified from appearing as an organization director for 12 years after receiving a Covid mortgage his enterprise was not entitled to.
The Insolvency Service introduced that Harrison, 38, previously of Wrotham, Kent and now residing in Spain, misused the federal government’s Covid Bounce Again Mortgage Scheme by making use of for 2 loans totalling £90,000 for his firm.
Companies have been solely permitted to obtain one such mortgage beneath the scheme.
South East Commercials, a used automobile dealership included in Could 2020, initially secured a £45,000 mortgage in June of that yr.
Nonetheless, two months later, Harrison submitted a second utility for a further £45,000, falsely declaring that it was the primary and solely utility made on behalf of his enterprise.
The corporate was dissolved in January 2025. An investigation by the Insolvency Service discovered that Harrison signed the second utility himself, regardless of later claiming that he was unaware just one mortgage was allowed and that the primary utility had been submitted by a 3rd occasion.
No proof of third-party involvement was discovered.
Following a Excessive Courtroom listening to in London on 15 April, Harrison was disqualified beneath sections 6 and 15A of the Firm Administrators Disqualification Act 1986. His ban got here into impact on 6 Could 2025.
Ann Oliver, chief investigator on the Insolvency Service, stated: “Joseph Harrison utilized for and acquired a second Covid mortgage when he was solely entitled to at least one for his automobile gross sales enterprise. A 12-year ban is a major disqualification and demonstrates the seriousness of his actions.
“The Insolvency Service is dedicated to making sure those that abused this scheme – which was designed to profit the financial system and assist small companies – are delivered to justice.”
The Bounce Again Mortgage Scheme was launched in the course of the pandemic to assist small and medium-sized companies, providing loans of between £2,000 and £50,000 at a low, government-guaranteed rate of interest.
Harrison has additionally been ordered to repay the excellent stability of £38,295 from the second, illegitimate mortgage.
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