Property investment chief falsely claimed Bounce Back Loan

Property investment chief falsely claimed Bounce Back Loan


Todays other news


The head of a property investment firm has been disqualified from being a director for 12 years following the discovery that he falsely claimed a £45,000 Bounce Back Loan during the Covid crisis.

Simon Gorgin applied for a £45,000 Bounce Back Loan for his company, P3 Estates Ltd, in May 2020. Gorgin was sole director of the company from its incorporation in April 2010 until it was dissolved in December 2021.

Gorgin stated on the loan application that P3 Estate’s turnover in 2019 had been £180,000. A loan of £45,000 arrived in the company’s bank account the following day.

But a month earlier, in April 2021 he had applied to dissolve the company and by July of the same year P3 Estates still owed the full amount of the loan, prompting an investigation by the Insolvency Service.

Investigators discovered that P3 Estate Ltd had never traded, and had not been trading at the time of the loan application and so had not been entitled to receive any money under the scheme. They also found that three days after the loan arrived in the company’s account, Gorgin had further breached the rules of the scheme by transferring the full £45,000 to his own bank account.

And Gorgin failed to notify the bank from which he had borrowed the money that he had applied to strike off the company – breaching a legal obligation for directors to notify creditors when dissolving their business.

Gorgin has been banned for 12 years them from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of a court. A compensation order is being recommended to recover the money.

Peter Smith, deputy head of dissolved company investigations at the Insolvency Service, says: “Bounce Back Loans were designed to help businesses to survive the pandemic. Simon Gorgin abused the scheme and took taxpayers’ money at a time when many businesses were in genuine need … [and this lengthy ban] should stand as a warning that we will take action against directors who abuse government support schemes.”

 

Tags: Finance

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Letting Agent Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Recommended for you
Related Articles
The Bank’s monetary committee has made its decision...
The government says it's a tweak, not a U-turn...
The Welsh Government is backing the call for a 'compensation'...
There will be a greater emphasis on digitisation....
A consultation document is being released today....
Recommended for you
Latest Features
Two amendments are being put to the Renters Rights Bill...
David Smith Weill be answering agents' questions...
She;'s previously worked with LSL's Reeds Rains brand...
Sponsored Content
Tenants want a place they can call home—somewhere comfortable, safe,...
Letting agencies face the dual challenge of keeping both landlords...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here