A Hertfordshire businessman has been sentenced to over three years in prison after fraudulently claiming £200,000 through the UK government’s Covid-19 Bounce Back Loan scheme.
Ricky Harrison, 41, of Beacon Court, Hertford Heath, was found guilty at St Albans Crown Court of multiple fraud offences after he exaggerated company turnover and misused taxpayer funds for personal gain.
The case highlights the government’s ongoing crackdown on Covid loan fraud, which cost the UK billions during the pandemic.
How the Bounce Back Loan Fraud Was Carried Out
Harrison applied for four £50,000 Bounce Back Loans in May 2020 for businesses he controlled — Hackney Works Ltd, Tower Hamlets Works Ltd, Ricky Harrison Holdings Ltd, and Newham Works Ltd.
Investigators found that three of the companies had no trading activity at all, and the fourth significantly overstated its turnover to secure a loan far greater than it was entitled to.
- Hackney Works Ltd: Falsely declared turnover of £245,000 (no trading activity)
- Tower Hamlets Works Ltd: Falsely declared turnover of £232,000 (no trading activity)
- Ricky Harrison Holdings Ltd: Falsely declared turnover of £315,000 (no trading activity)
- Newham Works Ltd: Claimed turnover of £215,000 (actual turnover £64,000)
Despite the clear discrepancies, Harrison succeeded in obtaining £200,000 in total Bounce Back Loans intended to support struggling businesses during the Covid-19 pandemic.
Misuse of Funds and Legal Consequences
Instead of using the funds to support business operations, Harrison transferred large sums into his personal accounts. He also used £85,000 to purchase a vehicle in June 2020 — a direct violation of Bounce Back Loan scheme rules.
Authorities said Harrison made only one loan repayment of £833 before attempting to dissolve the companies to escape repayment obligations.
On 25 April 2025, Harrison was sentenced to three years and two months in prison and disqualified from being a company director for 10 years.
“Ricky Harrison’s actions were deeply cynical. He exploited an opportunity to help himself to taxpayers’ money during what was a national emergency,” said David Snasdell, Chief Investigator at the Insolvency Service.
Wider Impact: Bounce Back Loan Fraud in the UK
The Bounce Back Loan scheme, introduced in May 2020, provided quick financial support to small businesses during the pandemic. However, relaxed due diligence requirements left the system vulnerable to abuse.
- Estimated Fraudulent Loans: £4.9 billion (11% of total loans)
- Total Potential Losses: Up to £26 billion (including defaults and fraud)
- Director Disqualifications: 752 (Covid loan-related)
- Arrests Linked to Covid Loan Fraud: 49 (as of May 2024)
The UK government has since ramped up efforts to recover funds, investing £100 million into fraud detection and enforcement initiatives.
Ongoing Crackdown
The National Crime Agency, HMRC’s Taxpayer Protection Taskforce, and the Insolvency Service are aggressively pursuing fraudsters. HMRC has already reclaimed £743 million in overclaimed Covid support grants.
As Snasdell reiterated:
“This was public money, and we will continue to prosecute those who made such obvious false representations.”
Protecting Public Funds: Advice for Businesses
Businesses are reminded to maintain clear records of Covid loan use and to ensure any financial support received was in line with eligibility criteria.
Those concerned about Bounce Back Loan compliance can seek guidance from specialists like Real Business Rescue.
Suspected fraud should be reported via the GOV.UK website.
