Azizullrahman Akbari overstated the turnover of his New Watan Bakery Limited company when he applied for a £50,000 Bounce Back Loan in May 2020.
The scheme was launched earlier that year in order to support businesses impacted by the Covid pandemic, with small and medium-sized firms able to borrow between £2,000 and £50,000 at a low interest rate, guaranteed by the Government.
Akbari said in his application that New Watan Bakery Limited had a turnover of more than £214,000, but Insolvency Service analysis of the company’s accounts revealed that it actually had a turnover of £62,584 for the period up until the end of June 2019.
Meanwhile, its turnover for the period ending June 2020 was £52,370.
The company, which was established in June 2016 with Akbari as its sole director, formerly ran the Watan Bakery on South Road in Southall, west London.
New Watan Bakery Limited entered liquidation in July 2023 owing more than £53,000, with Watan Bakery now owned by a separate company where Akbari is not a director.
The money lent to any company under the Bounce Back Loan scheme has to be paid back over a six or 10-year period.
Any repayments that did not begin after 12 months subsequently led to an Insolvency Service investigation.
‘Loan misconduct a key priority’
Elizabeth Pigney, chief investigator at the Insolvency Service, commented: “Azizullrahman Akbari exaggerated his company’s turnover to secure a £50,000 Bounce Back Loan, the most businesses were entitled to under the rules of the scheme.
“From our analysis of the accounts, the company did not deserve anywhere near this amount.
“Tackling Bounce Back Loan misconduct remains a key priority for the Insolvency Service and we will continue to take action against directors like Akbari who made false declarations when applying for financial support from the government.”
Akbari’s ban started on 29 January and will run until 2035, with it preventing him from being involved in the promotion, formation or management of a company, without the permission of the court.
