Latest news with #ZahidAfzal
Western Telegraph
a day ago
- Business
- Western Telegraph
Pembrokeshire company director sentenced for fraud during Covid
Mr Zahid Afzal of Haverfordwest fraudulently claimed extra Covid bounce back loans for his phone sales and merchandise companies. When appearing at Swansea Crown Court on Thursday, June 12, Mr Afzal was sentenced for three counts of fraud by false representation and was handed a two-year suspended sentence, and 300 hours of unpaid work. Insolvency Service Chief Investigator David Snasdell said: 'It is clear from our investigations that Zahid Afzal felt he could continue to apply time and time again for loans he was not entitled to. 'Not satisfied with the substantial funds he had legitimately received, he went on to lie on applications and exaggerate his companies' turnovers. 'His sentencing should serve as a reminder to those contemplating fraudulently pocketing taxpayers' money to think again.' The director of Phone Bits Ltd and Phones Onn Ltd had already received Covid loans for both companies legitimately – totalling £52,500 – when he applied for three more. The 37-year-old, from Haverfordwest, falsely claimed the applications were the first he had made and exaggerated the turnover of each company. He then received three additional loans of £50,000 each – one for Phone Bits Ltd and two for Phones Onn Ltd – between May and November 2020. The Insolvency Service investigation did not find any wrongdoing with the use of his initial loans for Phones Onn Ltd (£20,000) and Phone Bits (£32,500), which he was entitled to and were used entirely for business purposes. But he moved most of the £150,000 he received from his second round of loans to personal accounts despite stating they were for business purposes. The Bounce Back loan scheme helped small and medium-sized businesses to borrow between £2,000 and £50,000, at a low interest rate, guaranteed by the Government. The loans were made on the condition that they were not to be used for personal purposes, but could be used, for example, to purchase a company asset such as a vehicle, if it would provide an economic benefit to the business. The money lent to a company had to be paid back, over six or 10 years, with payments starting 12 months after the company received the loan. The Insolvency Service is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002.
Wales Online
3 days ago
- Business
- Wales Online
Company boss pocketed £150,000 in fraudulent Covid business loans
Company boss pocketed £150,000 in fraudulent Covid business loans A judge told Zahid Afzal that at a time of national emergency the government had set up a system to help businesses which he had abused A company boss fraudulently obtained £150,000 in loans designed to help businesses hit by the Covid pandemic, a court has heard. Zahid Afzal made two legitimate applications for "Bounce Bank" loans but then used his knowledge of the application process to acquire three more loans he was not entitled to. A judge at Swansea Crown Court told the defendant that at a time of national emergency the government had set up a system to help businesses which he had abused to obtain loans he was not entitled to. Harry Dickens, prosecuting, told the court that the UK government established "Bounce Back" loans to help small and medium businesses during the coronavirus pandemic, and that the scheme allowed companies to borrow between £2,000 and £50,000 at a low interest rate. He said the defendant made two legitimate applications for his companies Phones Onn and Phone Bits Ltd to HSBC and NatWest respectively, and the applications were successful. However, he said Afzal subsequently made three more applications to Lloyds, Starling, and Metro Bank during 2020 for the same phone companies and in each case falsely declared there had been no previous applications for those firms. The court heard the defendant also inflated the turnover figures of the firms in order to access the maximum £50,000 loan amounts. Article continues below The prosecutor said the three loan applications were successful and a total of £150,000 was paid into the companies' accounts, much of which was subsequently transferred out into personal accounts. Zahid Afzal, aged 37, of Albert Street, Haverfordwest, Pembrokeshire, had previously pleaded guilty to three counts of fraud by false representation when he appeared in the dock for sentencing. He has no previous convictions. Jon Tarrant, for Afzal, said the defendant employed eight people, and said six of those needed the employment to maintain their UK visas. He said the father-of-three was a successful businessman who had established himself in a positive light to many people but that position "has now been reversed". He said the defendant's remorse for his "unwise decisions" had been "palpable" during their conferences. For the latest court reports sign up to our crime newsletter Judge Catherine Richards said at a time of nation emergency the UK government had established a system to help businesses that was paid for by society and which "relied on the trust and confidence that each gives the other as a member of this society". She told Afzal he had deliberately abused that by applying for loans he knew he was not entitled to and which, ultimately, were not for business use. The judge said while she had no doubt the offending justified immediate custody she was concerned that "the public finances are not further prejudiced" by Afzal's actions. She also said she was mindful of the impact of immediate custody on others. With one-quarter discounts for his guilty pleas Afzal was sentenced to two years in prison suspended for two years and was ordered to complete 300 hours of unpaid work. A proceeds of crime investigation will now be launched into the defendant's finances. Article continues below The prosecution barrister said he wanted to out the court on notice that a written application would be made for a restraint order to be made in respect of the defendant's personal Santander bank account which currently contains some £74,000.
