8:26 am, January 27, 2023
A dodgy car dealer has been banned from running any company for more than a decade after he scammed the taxpayer out of £50,000 by fraudulently claiming a Bounce Back loan.
Mathius Thompson, 33, applied for the government grant for his used car dealership, West Midz Cars Ltd in Birmingham, in May 2020.
He lied about the amount of income the firm was generating in order to pocket the sum during a time which Britain remained in full lockdown.
His web of lies was only uncovered when his company – of which he was the sole director – went bust with debts of £53,500 in August 2021.
The liquidation process sparked an investigation by the Insolvency Service into Thompson’s Bounce Back loan, which has now been found to have been claimed illegally.
Under the government scheme, firms were able to apply for loans of up to 25 per cent of their 2019 turnover, up to a maximum of £50,000.
In his application, Thompson stated that West Midz Cars turned over £287,500, meaning he was able t0 claim the full £50,000 amount.
However, investigators found that the dealership actually had no income or trading activity in the relevant period and had only turned over £2,500.
The company accounts also showed no evidence that the money had been used for the benefit of West Midz Cars.
The government is now seeking a compensation order to force Thompson to repay the money in full.
He has also been disqualified from being a company director for 11 years, starting on January 30.
Tom Phillips, assistant director of company investigations at the Insolvency Service, said: ‘The Bounce Back Loan scheme was designed to support businesses in genuine need.
‘This company director abused taxpayers’ money to apply for a loan to which he wasn’t entitled, and failed to show that the money claimed had been used to support his company.
‘He has been removed from the corporate arena for a total of 11 years, and his disqualification should serve as a reminder to others that the Insolvency Service will take action to protect the public and the taxpayer.’
Car Dealer Live – the future of the car dealer – exclusive conference features talks from leading car dealers, Google and Auto Trader among much more. Find out the full event details and book tickets.
