A Lancashire plasterer who exaggerated his business turnover by more than £200,000 to fraudulently secure a maximum-value Covid Bounce Back Loan has been handed a suspended sentence.
Jordan Allen, 39, of Monarch Street, Oswaldtwistle, secured a £50,000 loan in 2020 under the Bounce Back Loan Scheme, despite his business, PlasteRend, being eligible for only around £5,000. Allen claimed his annual turnover was £225,000, significantly overstating his actual turnover of just over £20,000.
Fraudulent Spending
The funds, intended to support businesses during the pandemic, were instead transferred to Allen’s personal account and used for groceries, gambling, a raffle, fantasy football, and nearly 40 cash withdrawals. Analysis revealed Allen spent £17,000 on personal expenses in a six-week period between February and April 2021.
Legal Outcome
Allen appeared at Preston Crown Court on 20 January and was sentenced to 16 months in prison, suspended for two years. He was also ordered to:
- Complete 200 hours of unpaid work
- Attend 10 days of rehabilitation activity
- Pay £3,600 in compensation
Insolvency and Restrictions
Allen was declared bankrupt in September 2021 and is under a 10-year Bankruptcy Restrictions Undertaking that limits his ability to borrow funds without disclosing his bankrupt status.
Investigation Findings
David Snasdell, Chief Investigator at the Insolvency Service, said:
“Jordan Allen made a blatantly false statement by exaggerating the turnover of his business. He then compounded this by spending taxpayers’ money on personal expenses instead of supporting his business through the pandemic.”
Allen claimed optimism about future business opportunities to justify the inflated turnover figure, but the Bounce Back Loan rules required actual turnover to be declared.
Public Accountability
The case serves as a warning against fraudulent behavior involving government financial aid, particularly schemes designed to support businesses during crises.
