Craig Gibson, a 45-year-old entrepreneur from Liverpool, has been sentenced at Liverpool Crown Court to two years’ imprisonment, suspended for two years, after fraudulently obtaining over £95,000 through the COVID-19 Bounce Back Loan Scheme.
Gibson submitted two fraudulent loan applications:
He applied for a £50,000 loan using his mother’s name and business without her knowledge, diverting the funds for personal use.
He secured a £45,412 loan through his own company, Gibson Bowers Ltd, exaggerating its turnover. The majority of these funds were transferred to his personal account and used for non-business-related expenses.
An investigation, utilising HMRC records, revealed that Gibson’s company was not trading between 2019 and 2021, confirming the falsification of financial information to maximise loan amounts. Gibson pleaded guilty to:
Fraud by false representation (£50,000) concerning Combined Developments Liverpool Ltd.
Fraud by abuse of position (£45,412) related to Gibson Bowers Developments Ltd.
In addition to the suspended prison term, Gibson was ordered to complete 20 rehabilitation days. Arslan Khan of the Crown Prosecution Service stated that Gibson exploited a government system designed to support businesses during the pandemic, diverting funds for personal use.
Khan noted the commitment to pursuing individuals who dishonestly benefited from government support schemes and indicated that confiscation proceedings would follow to prevent Gibson from profiting from his criminal actions.
The Bounce Back Loan Scheme was introduced by the UK government to provide financial support to businesses adversely affected by the COVID-19 pandemic, offering loans of up to £50,000 with favourable repayment terms.
However, the scheme has been susceptible to fraud, leading to significant financial losses. As of March 2024, £1.51 billion had been paid out on government guarantees for loans where lenders reported suspected fraud.
Enforcement agencies continue to address these fraudulent activities, with numerous arrests and prosecutions to date.
