Insolvency Service disqualifies over 450 Covid fraudsters
More than 450 directors were disqualified in the past 12 months for abusing the Covid support schemes like the Bounce Back Loans. But critics have questioned whether this action is too little, too late.
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Something like this really needs context
How many BBLs became irrecoverable in that time?
this is all over the place.... just like the BBL scheme...
We start with the claim of abuse, but then rightly identify this is fraud.
"10 billion has been lost", if the maximum was 50k this is 200,000 business' committing fraud? So not a "minority of company directors chose to maliciously abuse the scheme"?
Speed to deliver vs fraud prevention.... I have seen many example which could have been added to the schemes criteria which would have easily avoided this fraud, it is simply negligent and I hope to see the people responsible wrapped up in public enquiries for years to come.
What a joke. These fraudsters must all be laughing their socks off, as these are just wrist-slaps basically for people who should be spending a long time in jail and facing confiscation orders etc. But of course we all know that will never happen (and so do they of course).
"...where speed to deliver the support to businesses took precedence over adequate fraud-prevention measures"
As for the above statement, that's pure BS. As Lord Agnew (and JAU above) said, it would have taken just one sensible, competent person to suggest basic anti-fraud measures that could have been applied more or less immediately to prevent most if not all these frauds - the scale of which in the absence of such measures was predictable by anyone with any common sense.
This was nothing short of pure and total incompetence by the person in charge of this country's money at the time i.e. RS. Just think of what good public services this money could have funded (doctors and NHS generally anyone?) and/or there would probably be no need for the 25% CT rate hike etc. had RS not been such a total idiot to allow this.
Totally Agree. Only in the UK this can happen where BBL fraudsters can get
£50,000 with a click of a button and no one is at bothered. What's the difference lying on my mortgage application and lying on a bank loan. I would be jailed for lying on my mortgage application ?
We have end up paying for this in Corporation Tax increases due to these fraudster most of them just ended with disqualification which will have absolutely no affect on them and probably telling their mates they get 50k for free or in some cases much more than 50K as they had multiple companies or a sole trader bank account. I think most people would take 50K and disqualification if you offered it to them.
No-one ever mentions the Banks mishandling of the BB loans. Try to get a normal loan or mortgage and the answer is NO not until you have jumped through hoops!. Where was the AML checks? the due diligence? Yes the Government should have strengthened the criteria, but the Banks need to be held responsible too.
The banks did NOT mishandle BBL's - they were not to blame for the Government saying to them:
"get the money out there, no need for the usual checks and balances, we will indemnify you"
On that basis the banks handled the distribution quite well..
This talks about directors but - & I may have missed it in a quick read - what about sole traders who also may have abused the system in a similar way?
They obviously can't be disqualified but there is surely some means of investigation & consequence?
Yes good point - I know so many people in the construction industry had a old sole trader bank account and limited company bank account and claimed for both.
No one is bothered and banks have been closing bank accounts where there is BBL so will get lost in the system. The only people that get caught seems to be at the liquidation stage so if they leave the company dormant I don't think anyone would find out about the BBL. Possibly someone could could claimed 50K BBL when the company was dormant and leave it dormant so when they die the debt gets written off.
There are just too many cases to go after and probably should concentrate on those will multiple loans and prosecute them but even these ones they end up with just a disqualification when it is blatant fraud.
Disqualifiaction is no punishment whatsoever. These people can still work through companies as shareholders and get their spouse or friend to be the actual director. They should be jailed for fraud - no if or buts.