Stanislav Genadiev, a 37-year-old electrician from Faircross Avenue, Romford, has been ordered by Snaresbrook Crown Court to repay over £56,000 after fraudulently claiming Covid Bounce Back Loans intended for his businesses and misusing the funds for personal expenses. The court issued a confiscation order for £56,948 on Monday, September 9, with a warning that failure to repay within three months will result in an 18-month prison sentence.

Genadiev fraudulently obtained two loans totalling £100,000 during the Covid-19 pandemic, with one loan application submitted in July 2020 for his business K and S Installation Ltd. He claimed a 2019 turnover of £200,000, despite official accounts showing the actual figure to be closer to £85,000. A second loan application in September 2020 was submitted for a separate business, G and S Perfumes Ltd, which was not actively trading at the time. He falsely claimed an estimated turnover of £200,000 for this company as well.

The Insolvency Service uncovered that, instead of using the funds for the benefit of his businesses, Genadiev spent the loan money to pay off personal debts, cover everyday expenses such as groceries, and even splurge on designer clothing.

Alexander Grierson, Head of Asset Recovery at the Insolvency Service, stated, “Stanislav Genadiev misled authorities by declaring that the funds would be used for his businesses, but instead used them for personal debts and luxury purchases.” The Insolvency Service identified assets worth nearly £57,000 belonging to Genadiev, including a 50% equity share in his home and land in Bulgaria.

This confiscation order follows Genadiev’s earlier sentencing in February, where he received a two-year suspended prison sentence and was ordered to complete 150 hours of unpaid work.

The Insolvency Service has reiterated its commitment to recovering fraudulently obtained funds and has warned it will pursue additional assets to recover the remaining debt if necessary.