Fraudster claimed £150k in Covid bounce back loans

A cafe owner has been sentenced for fraudulently claiming £150,000 in Covid bounce back loans from the government.

Mehmet Akyuz, 36, from Conway Street, Brighton, East Sussex, made three applications for two businesses which were not operating at the time.

He was given a 20-month prison sentence, suspended for two years, at Hove Crown Court on Monday, after admitting three counts of fraud by false representation.

He was also ordered to complete 300 hours community service, has been banned from being a company director for five years and faces a proceeds of crime hearing in September.

Each of the three loans was for the maximum amount of £50,000, and were for Akyuz's companies Green and Hove Limited, a food and grocery shop with a cafe, and Leather Wear Limited, an importer of bags and belts.

Both firms had been incorporated in 2019 with him as sole director.

He claimed the cafe had a turnover of £270,000, and the import firm between £215,000 and £225,000.

However, the cafe had filed dormant accounts between 2020 and 2021, and the import firm between 2020 and 2022.

David Snasdell, chief investigator at the Insolvency Service, said: "Mehmet Akyuz's actions in fraudulently applying for three bounce back loans he was not entitled to were completely unacceptable.

"This was taxpayers' money designed to support small businesses through the pandemic and should not have been exploited in such a cynical manner.

"The Insolvency Service remains committed to investigating these cases and bringing fraudsters such as Akyuz to justice."

A proceeds of crime hearing is due to take place at Hove Crown Court on 18 September.

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