A company director in Middleton has received a hefty ban after he made a 'wrongful declaration' for £50,000 through a Covid support scheme when his business was deemed 'dormant'. 

In May 2020, Olaguke Oladosu applied for a £50,000 Covid 'Bounce Back Loan' for his management consultancy company, Geelink Limited, on Kingsway, Middleton.

Bounce Back Loans were introduced during the pandemic as a way to help struggling businesses recover financially.

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Companies could receive a loan between £2,000 and £50,000, subject to a maximum of 25 per cent of their annual turnover for the 2019 calendar year.

The applicant would then self-certify the turnover figure.

The company was registered to an address on Kingsway in MiddletonThe company was registered to an address on Kingsway in Middleton (Image: Google Maps)

However, the Insolvency Service found Mr Oladosu "knew or ought to have known" that his business did not meet the required turnover to be able to apply for a £50,000 loan and that he "made a wrongful declaration by overstating Geelink's turnover".

The company had made £214 in the criteria year for the loan, but Mr Oladosu said Geelink had made £200,000.

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As the business was incorporated in November 2016, Geelink was required to use the turnover for the full calendar year of 2019.

Yet records show on Companies House that the company was "dormant" and had an income of £214 for the calendar year.

The minimum turnover requirement for any Bounce Back Loan application was £8,000.

The 49-year-old applied for the maximum £50,000 loan having declared Geelink's turnover was £200,000.

When the company received the loan, Geelink's bank balance was £62.

Mr Oladosu then received £1,348 from Geelink's bank account on June 22, 2020, followed by £12,000 two days later.

On July 8 2020, he then received £32,000 from Geelink's bank account.

This came to a total of £45,348 being deposited into his account in less than two months since Geelink received the Bounce Back Loan.

Mr Oladosu then deposited £4,250 into Geelink's bank account between March and October 2021.

As the company did not receive any further income between May 15 and June 8, 2020, the Government said the use of the loan "does not appear to have been used for the economic benefit of the company which was in breach of the BBL terms and conditions".

At liquidation, the Insolvency Service notes Geelink had liabilities of £57,307, of which £47,307 was the outstanding amount owed for the Bounce Back Loan.

As a result, Mr Oladosu has been disqualified as a company director for 10 years.

Got a story? Email me Olivia.bridge@newsquest.co.uk