"A man who used a government-backed Covid loan to buy a house has been jailed for fraud. Mohammed Rashidzadeh, 34, secured a 50,000 Bounce Back Loan for his company, Cozy Bed Ltd, in June 2020. But within days, he transferred the money into his personal account and used it for the purchase of a three-bedroom semi-detached house in the Almondbury area of Huddersfield."
"Mohammed Rashidzadeh's offending was twofold and deeply cynical. He immediately misused the 50,000 Bounce Back Loan funds he obtained to buy himself a house instead of supporting his business through the pandemic. His second offence was equally calculated attempting to dissolve his company without properly notifying his creditors, including the bank that had provided the loan. The strike-off process exists to protect creditors' interests, and deliberately concealing such applications from lenders is a criminal offence that undermines the entire corporate framework."
Mohammed Rashidzadeh, 34, obtained a 50,000 Bounce Back Loan for Cozy Bed Ltd in June 2020 and transferred the funds into his personal account within days. He used the money to buy a three-bedroom semi-detached house in Almondbury, Huddersfield. Eight days after the funds were paid he applied to have Cozy Bed Ltd struck off Companies House without notifying the bank that provided the loan. He was convicted under the Fraud Act and Companies Act after a four-day trial at Leeds Crown Court and sentenced to 18 months' imprisonment. The Insolvency Service described the conduct as twofold, cynical, and undermining creditors' interests.
Read at www.independent.co.uk
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