Zahoor Ahmed Chaudhry, 49, from Leamington Spa, worked at a local petrol station and is currently unemployed.
He secured a £50,000 bounce back loan for his business in June 2020, even though it never traded and was therefore not eligible for financial support through the Bounce Back Loan scheme, which was supposed to support genuine businesses affected by the pandemic.
In addition, he falsely told the bank that his turnover was £200,000 in order to secure the maximum £50,000 available under the scheme.
Chaudhry later filed for bankruptcy in December 2021, at which time Insolvency Service examiners discovered his repayment of the loan. However, Chaudhry claimed that his recently deceased wife had taken control of his bank account and spent the money without his knowledge.
However, further inquiries revealed that he had transferred £40,000 to the law firm Return Credit and appeared to have given a glowing review on their website, although he denied posting it.
The Official Receiver has engaged lawyers to recover this amount and expects a positive outcome.
The Secretary of State for Business, Energy and Industrial Strategy has accepted a ten-year bankruptcy restrictions commitment from Zahoor Ahmed Chaudhry, which runs until 20 June 2032.
Kevin Reed, Official Receiver of the Insolvency Service, said:
The Covid-19 support schemes generously provided taxpayer money to support genuine businesses, and those like Zahoor Chaudhry who cynically abused the scheme should expect to be caught and punished.
Notes to editors
Zahoor Ahmed Chaudhry is from Leamington Spa and his date of birth is December 1972.
Details of Zahoor Ahmed Chaudhry’s initiative are available on the website Individual register of insolvency
Bankruptcy restrictions are broad. The consequences are the same whether you are subject to a bankruptcy restraining order or an undertaking. Guidance on the main statutory implications arising from A bankruptcy restraining order or undertaking.
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10-year statute of limitations on former gas station employee’s bankruptcy
Source10-year statute of limitations on former gas station employee’s bankruptcy