The director of a timber supply business misused the Bounce Back Loans scheme during the Covid-19 pandemic.
Lee Mankelow, 42, of Arnold, deceptively claimed £50,000 allegedly to support his timber supply business, and then paid it to a former director of the company.
The government scheme helped businesses that were facing hardship during Covid-19 to borrow between £2,000 and £50,000 at a guaranteed low interest rate.
Mankelow was the director of timber product traders Wolf Timber Ltd. The company liquidated its profit in December 2020, before their insolvency led to an investigation by the Insolvency Service.
The investigation concluded that Mankelow’s company applied for the Bounce Back Loan after the company saw an increase in online business during the Covid lockdowns in June 2020. Mankelow then transferred the full £50,000 that was intended to support the business to a former director of the company.
The investigation into the timber establishment further concluded that the loan was not used to pay the wages, bonuses, dividends, and expenses of the former director, as Mankelow had claimed.
Mankelow was then disqualified from his position as director and is now prevented from directly or indirectly being involved in the promotion, formation, or management of a company, without the permission of the court.
Tom Phillips, Assistant Director of Investigation and Enforcement Services for the Insolvency Service, said: “Bounce Back Loans were put in place to provide vital support to help viable businesses through the pandemic.
“Mankelow completely abused the government-backed loans to further his own interests, which was totally unacceptable.
“Mankelow’s ban should serve as a stark warning to other directors who may have misused financial support during the pandemic that we have the ability to bring your actions to account and remove you from the corporate arena.”
