A taxi driver from Dartford, Kent, has been sentenced to two-and-a-half years in prison following a fraudulent scheme to secure Covid loans totalling £130,000. Nelson Clark, aged 34, was found guilty of providing false information about his income while applying for Bounce Back Loans aimed at assisting small businesses during the pandemic.

The fraudulent activity commenced when Clark applied for his first Bounce Back Loan of £30,000 in May 2020, claiming that his annual turnover for his business, N Clark Taxis, was £120,000. However, an investigation by the Insolvency Service revealed that his actual revenue was approximately £70,000 lower than this exaggerated figure.

In July 2020, just two months later, Clark further sought to exploit the loan system by obtaining an additional £100,000 across two other businesses, Nelson Clark Management and Rosewood Motors. In these subsequent applications, he misrepresented both businesses’ turnovers to be £200,000 each, allowing him to secure two loans worth £50,000 each.

The investigation also disclosed that a considerable portion of the funds, approximately £80,000, was transferred to a third party for personal use, contrary to the terms and intended purpose of the loans, which were meant to support small businesses during the economic challenges posed by the pandemic.

Clark was declared bankrupt in August 2021 and subsequently signed a 10-year Bankruptcy Restrictions Undertaking in March 2022, which imposes limits on his borrowing capacity without disclosing his bankrupt status.

After taking into account the extent of Clark’s dishonest actions, David Snasdell, Chief Investigator at the Insolvency Service, commented on the case, stating, “Nelson Clark deliberately targeted a scheme which was set up to support genuine small businesses through Covid. Clark made false representations on not just one occasion, but three times within a two-month period. His actions were clearly dishonest and he made matters worse by spending the money he received for his own personal benefit.”

In an effort to recover the fraudulently obtained funds, the Insolvency Service has initiated proceedings under the Proceeds of Crime Act 2002. Clark’s sentencing took place at Croydon Crown Court on 13 March.

Source: Noah Wire Services