Man used fraudulent Covid loan to purchase BMW for non-existent business

A man in Sheffield has been sentenced for fraud after cheating taxpayers out of £50,000 by using Covid loan funds to replace his car. James Todd, 37, received an 18-month suspended prison sentence and was ordered to complete 240 hours of unpaid work, as well as pay £2,000 in compensation at a rate of £100 a month.

Todd had applied for a £50,000 Bounce Back Loan in July 2020, claiming his business had an annual turnover of £255,000. However, investigations by the Insolvency Service revealed that his business was not trading and that Todd was actually in full-time employment at the time of the loan application.

Within just six days of receiving the loan, Todd transferred £32,500 to his personal account, withdrew £1,250, and transferred £16,500 to associates. He also made payments towards his BMW and sold his old vehicle for a profit.

As a result of his actions, Todd accepted a 10-year Bankruptcy Restrictions Undertaking, which limits his ability to borrow money and act as a company director without court permission.

David Snasdell, chief investigator at the Insolvency Service, condemned Todd’s actions, stating that the agency will not hesitate to take action against those who steal from the public purse. Todd’s case serves as a reminder of the consequences of fraudulent behavior and the importance of accountability when it comes to public funds.