Latest news with #CovidLoan
Daily Mail
7 days ago
- Business
- Daily Mail
Sprint champion who won £75,000 on Dragons' Den illegally pocketed Covid bounceback loans to buy himself a £1.8m mansion
A world sprinting champion who won £75,000 on Dragons' Den illegally pocketed two Covid Bounce Back business loans to buy himself a £1.8m mansion. Rick Beardsell, 46, was only entitled to one Covid Bounce Back loan of a maximum £50,000 but he fraudulently applied for two. This was despite him receiving a £75,000 investment from TV Dragons Tej Lalvani and Deborah Meaden for his successful protein shake bottle business. The father of two, who won a total of seven gold medals for GB in World Masters Athletics Championships, was supposed to use the Covid loans to prop up his other firm which sells sportswear. But instead, he used it to help finance the purchase of an impressive five-bedroom property called Holly House in the exclusive village of Prestbury, Cheshire. Under the Government's application rules, Beardsell was only permitted to one bounce back loan but he applied for two - then vastly inflated his annual turnover by up to 23 times. None of the money he fiddled went on the company. At Chester Crown Court, Beardsell faced up to three years in jail under sentencing guidelines after he admitted two charges of fraud. However, he was sentenced to 18 months in prison suspended for two years after prosecutors told a judge he had since paid all the money back. Beardsell, who won two World Records for sprinting and holds the fastest record for a 400-metre sprint for a 36-year-old at the 2015 WMA, had appeared on Dragons' Den to get investment for his shaker bottle manufacture firm ShakeSphere in return for 30 per cent equity. He claimed the support of Meaden and Lalvani subsequently helped him get sales of over 1 million shakers worldwide across the following two years. But Geoff Whealan prosecuting for the Insolvency Service said Beardsell made fraudulent applications for bounce back loans to HSBC in December 2020 and then to the NatWest in January 2021 in respect of his other firm Sports Creative Ltd. 'The defendant stated on the HSBC form that the turnover of Sports Creative was £485,000 and on the NatWest form said it was £320,000 - but unaudited financial statements showed turnover for the year end February 2020 was £20,622,' he said. 'The turnover was clearly exaggerated to secure the maximum bounce back loan and subsequent transactions showed the bounce back loan funds were not being used for the economic benefit or business purposes of Sports Creative at this time.' The court heard the HSBC and NatWest monies landed in Sports Creative's account in January 2021 but was then transferred to other bank accounts - including Beardsell's personal Santander account. Over a six-month period there were 179 debits from Santander totalling £5,698.15 for non-business purposes and credits of £399,116.63. He received a £75,000 investment from TV Dragons Tej Lalvani and Deborah Meaden (pictured) for his shaker bottle manufacture firm ShakeSphere in return for 30 per cent equity Then in September 2021, he transferred £431,160.80, which included the remaining bounce back loan funds, to a firm of solicitors for the purchase of Holly House he bought with his fitness fanatic wife Eszter. Mr Whelan added: 'In effect the bounce back loan funds had been used for this purchase and it can be inferred from the defendant's conduct that it was his intention to use the bounce back loans for this purpose at the time he made the application for it. 'But in relation to repayment, the defendant has repaid the bounce back loans to each bank.' Beardsell attended an interview under caution at offices of the Insolvency Service in October 2024. In a statement, he said: 'The guidance pertaining to bounce back loans indicated that the proceeds of such loans may be utilized for any purpose that yields a direct benefit to the company. 'At that juncture, I sought professional advice and was advised that such purposes include, but are not limited to, the coverage of overhead expenses or outstanding liabilities, as well as the investment in company assets or property. 'The funds that were transferred to my personal account constituted a director's loan and other economical overheads for the business.' His counsel Nichola Cafferkey said in mitigation: 'The loss of his good character is of some significance in respect of a man who has dedicated his life to his family, his professional entities and also his sporting endeavours. 'A year prior to the submission of the first loan application, the defendant was diagnosed with an aggressive form of testicular cancer and required surgery and extensive chemotherapy. The chemotherapy was successful but led to some significant side effects. 'One of those being vertigo, of which he had a severe episode which required hospitalisation and thereafter there are ongoing long-term issues as a result of that. 'The investigations brought on by the defendant's own actions has had an impact on his family which has led to a situation where he has been experiencing significant stress over the past few years. 'On top of that there are ongoing knee pains associated with his athletic success at national and international level. He has been running a business for many years without issue and it is plain e is extremely remorseful and regretful for his actions. 'These offences were out of character and were committed four years ago. He has taken responsibility and repaid the money back. He knows that it's his own fault. He has brought shame on his family and brought shame on himself. 'His wife is also his business partner and concerns that they have had about the ability to provide financially for their young children have been significant. 'The impact on his wife's physical health in terms of stress and strain has been significant. There has been significant weight loss and insomnia.' Beardsell was also ordered to complete 250 hours of unpaid work and pays prosecution costs of £11,142.70. SportsCreative was wound up in 2022 but ShakeSphere, which he runs Eszter, is still operating successfully. Beardsell was sentenced to 18 months in prison suspended for two years after prosecutors told a judge he had since paid all the money back Sentencing Judge Simon Berkson told him: 'You fraudulently lied and lied again in your applications for these loans. 'They were supposed to be for use in keeping your business running but the money was used for your own personal needs and the needs of your family. 'This is not a victimless crime. The government was trying to help struggling businesses at the time of national crisis. 'People were in lockdown, people were dying and people were very ill at the time when people required their public services. 'You used fraudulently obtained public funds for your own use, depriving honest people of the scheme's funds when the country was in crisis. 'You are a generally successful man both in business and in sports, particularly your involvement with athletics. You continue to run your business and it was on the TV programme Dragons' Den. 'You are a married person with two children and they are young children. You have survived an aggressive form of cancer. 'I have concluded that an immediate custodial sentence would have a significant harmful impact on your wife and children.'
Yahoo
18-07-2025
- Business
- Yahoo
Game over for Tomb Raider composer after Covid loan fraud conviction
A video game composer and sound designer best know for his work on the Tomb Raider series has been jailed for fraudulently applying for a Covid loan. Peter Connelly, who is based in Durham, overstated his company's turnover to obtain a second Bounce Back Loan of £37,500 in 2020 when businesses were only entitled to a single loan. Connelly had previously secured a legitimate Bounce Back Loan worth £22,000 one month earlier. The 52-year-old, of Lambton Court, Peterlee, was jailed for 16 months at a hearing of Durham Crown Court on Thursday, 17 July. He was also disqualified as a company director for six years. Tomb Raider composer 'blatantly disregarded the rules' David Snasdell, chief investigator at the Insolvency Service, said: 'Peter Connelly blatantly disregarded the rules of the Bounce Back Loan Scheme, designed to support small and medium-sized businesses during the pandemic. 'Connelly not only secured two loans when businesses were only allowed one, but deliberately inflated his company's turnover to receive more money than he was entitled to. 'The Insolvency Service is the lead agency for tackling Bounce Back Loan misconduct and we remain committed to ensuring fraudsters who stole from the public purse during a national emergency are brought to justice.' Connelly was the sole director of Peter Connelly Limited, established in June 2008. The company was known as Universal Sound Design Limited up until November 2012, and it described its trading as 'sound recording and music publishing activities'. First Bounce Back Loan was allowed According to the Insolvency Service, Connelly's first application for a Bounce Back Loan was in May 2020, when he secured £22,000. It added that this application was within the rules of the scheme. However, one month later in June 2020, Connelly applied to a different bank for a Bounce Back Loan of £37,500, claiming his company's turnover for 2019 was £150,000, the organisation said. The Insolvency Service said its analysis revealed his turnover was just over £58,000, meaning he substantially inflated it on his second application. Connelly also falsely declared that this was the only loan he had applied for, it added. The Insolvency Service said that in interviews, Connelly said he had been given the opportunity to re-imagine the music for the Tomb Raider soundtrack. This was a significant project which had the potential to be very lucrative, he added. To complete the project, Connelly said he had taken out personal loans and sold his car. However, Connelly said everything stalled at the start of the pandemic. Peter Connelly Limited went into liquidation in August 2021. Neither loan had been repaid at this time, the Insolvency Service said. Connelly himself entered into an Individual Voluntary Arrangement (IVA) in June 2022, a legally binding agreement where he has committed to making regular payments to an insolvency practitioner to repay his debts. The IVA remains active, the Insolvency Service said. Sign in to access your portfolio
BBC News
18-07-2025
- Business
- BBC News
Peterlee Tomb Raider composer jailed for Covid loan fraud
A video game composer known for his work on the Tomb Raider franchise has been jailed after he fraudulently applied for a Covid business Connelly, 52, of Lambton Court in Peterlee, was jailed for 16 months at a hearing at Durham Crown Court on overstated his company's turnover to obtain a second Covid Bounce Back loan of £37,500 in 2020, when businesses were only entitled to a single Service chief investigator David Snasdell said Connelly had "blatantly disregarded" the rules for the scheme, which had been designed to help small businesses during the pandemic. "Connelly not only secured two loans when businesses were only allowed one, but deliberately inflated his company's turnover to receive more money than he was entitled to," he said. Lucrative work Connelly's musical career saw him work on additional sound for the Tomb Raider III before he became the lead composer for Tomb Raider: The Last Revelation, Tomb Raider: Chronicles, and Tomb Raider: The Angel of officers from the Insolvency Service interviewed him, he said was working on an re-imagining of the music from the Tomb Raider soundtracks and claimed the project had the potential to be very began borrowing money through the Covid business loan scheme in May 2020, when he took out an initial £22, the first loan was legal, he then applied for a second loan in June through a different the application, he claimed his company's turnover was £150,000 but the Insolvency Service discovered the real figure was £58,000. His company went into liquidation in August 2021 before either loan had been also personally entered into an Individual Voluntary Arrangement (IVA) in June 2022, which committed him to repaying his debts through regular payments to an insolvency practitioner. Connelly pleaded guilty to dishonestly making false representation to make gains for himself or cause loss to well as being jailed, he was disqualified from being a company director for six years. Follow BBC North East on X, Facebook, Nextdoor and Instagram.
BBC News
10-06-2025
- Business
- BBC News
Jagoda Rubaszko handed suspended sentence for Covid loan fraud
A Northolt woman who invented a business to get a £50,000 Covid Bounce Back Loan backed by the government has been sentenced for Rubaszko made up administrative service company which she falsely claimed had a turnover of £210, then paid the loan into five separate bank accounts in Poland over a two-month was sentenced to 18 months' imprisonment, suspended for 21 months, for fraud by misrepresentation at Isleworth Crown Court on 5 June. Fraudulently obtained funds She will be tagged and under curfew between 19:30 and 06:00 every day for six months and must complete 175 hours of unpaid was investigated by The Insolvency Service, a government agency that administers compulsory company liquidations and personal service said it is seeking to recover the fraudulently obtained Bounce Back Loan Scheme was designed to enable businesses to access finance more quickly during the coronavirus applied to a bank for a loan on 26 April 2021, which was approved on 28 April 2021 and paid into her bank the application, she claimed she had been operating a business since 1 March 2020 and had a turnover of £210,000. But investigations into Rubaszko's finances showed her tax returns were no higher than £15,100 each year between 2019 and 2021. '£17,500 commission' In a prepared statement, Rubaszko claimed to have been contacted by a man called Daniel, who told her how to apply for the loan, and to declare herself bankrupt to avoid repaying Rubaszko admitted she had never met Daniel, even though she said she paid him a £17,500 commission for his "help" after receiving the £50, bank records showed no such payment was made – instead, 22 smaller payments up to £11,690 were made to five individual bank accounts in declaring herself bankrupt, Rubaszko was subject to a 10-year Bankruptcy Restrictions Undertaking (BRU) on 12 May 2023. The BRU prevents her from managing a limited company until 2033. 'Staggering cost to taxpayers' Chief investigator at the Insolvency Service, Mark Stephens, said Rubaszko claimed to be a business director, but she had no business at all, and now reality has "caught up with her".He added: "She invented a man called Daniel, who she has blamed for her actions, claiming he had told her to apply for the loan, and she believed she'd get away with this by declaring herself bankrupt."What is definitely real, is that she took money which was meant to help businesses during a difficult period, and sent that funding off to the bank accounts of five men in Poland."The bounce back scheme provided a total of £47bn in loans of which an estimated £4.9bn was lost to House of Commons Public Accounts Committee said in 2022 that the focus on delivery of the bounce back loans meant lenders were not required to do credit or affordability checks - or even verify application offset this risk to lenders the government guaranteed the loans 100% - meaning that if the borrower did not repay the loan, the taxpayer committee concluded that the scheme came at a "staggering" cost to the taxpayer and money that "could have been spent on improving existing public services, reducing taxes or to reduce government borrowing".
BBC News
28-05-2025
- Business
- BBC News
Bradford man stole father's tenant's identity for Covid loan
A man who stole the identity of one of his father's tenants to apply for a Covid business loan has been jailed for two Ahmed, 40, from Bradford, "callously" involved an innocent woman in his attempts to gain £100,000 of fraudulent loans near the start of the pandemic in 2020, a judge Crown Court heard he stole personal information she had given to his father in order to rent a property and later used the documents to falsely claim she was a restaurant business of Bardsey Crescent, admitted five charges related to the fraud, with only £5,000 paid back so far, the Local Democracy Reporting Service said. The court heard Ahmed was the shadow director of the business, but named his wife and his father's tenant as directors of the company in order to fraudulently claim the two £50,000 tenant had provided passport details and other information to Ahmed's father in order to rent her home, with the defendant using it to name her as director of the company. 'Shame on family' She had never been to the restaurant she was supposedly director of, the sentencing heard, with the company since wound a victim impact statement, the woman said she had suffered anxiety knowing her details had been used without her said she was also worried it would impact her ability to gain a loan in the future if one was defence barrister said the father of two had no previous convictions, adding: "He has brought shame on his family, they have never been involved in any criminal activity."Judge Sophie McKone told him: "You took advantage of a scheme designed to help businesses like yours and you cynically told lies to get money. "For your greed you took money from the public purse at a time when the public purse could least afford it."A proceeds of crime hearing to arrange the return of fraudulently gained funds is due to be held at a later date. Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
