The head of four construction contractor companies has been disqualified as a director for 11 years for taking Covid-19 support loans the businesses were not entitled to – claiming in one instance that a business turning over just £635 had reported revenue of hundreds of thousands of pounds.
Stephen Burke took £200,000 of taxpayers’ money through the Bounce Back Loan scheme across four companies that provided services to construction projects: Yorkshire Plant Hire and Sales; Yorkshire Site Preparation; Woodhouse Civil Engineering; and Richmond Brokers.
One of the four companies, Yorkshire Site Preparation, was listed as dormant on Companies House at January 2020. Accounts for the other three companies stated annual turnover up to January 2020 ranging from just £635 to £3,400.
Burke, the sole director of each company by 2020, said on Bounce Back Loan application forms that turnover was between £200,000 and £320,000 for each company, and secured four loans for the full £50,000 permitted under the scheme.
The Insolvency Service said he spent £174,000 repaying a personal loan to his former partner – a breach of the loans’ conditions, as they could only be spent on legitimate business expenditure.
In February 2021, Burke moved to dissolve all four companies. This was blocked due to the outstanding loans being identified, and the companies were placed in liquidation.
Rob Clarke, chief investigator at Insolvency Service, said: “Coronavirus support schemes were introduced to help British businesses through the most testing of times, providing them with the financial support to protect jobs and return to prosperity.
“Stephen Burke not only sought to defraud the Bounce Back Loan scheme for personal gain, but then sought to cover his tracks by dissolving the companies he’d used. This abhorrent conduct has rightly resulted in a lengthy ban, removing his ability to trade with the benefit of limited liability until 2033.”
To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @EGPropertyNews
