Businessman sentenced for COVID-19 Bounce Back Loans fraud

Craig Gibson, aged 45, was sentenced to two years’ imprisonment, suspended for two years, after being convicted of fraud by false representation and fraud by abuse of position of trust for submitting two fraudulent applications for loans from a Government scheme orchestrated to support businesses during the pandemic.

On two occasions, Gibson submitted fraudulent applications for the loans. On one application, he used his mother’s name and business, without her knowledge, to obtain a £50,000 loan. Once received, he then used the funds for his personal use.

On the second occasion, he used his own company – namely Gibson Bowers Ltd – to apply for another loan of £45,412. Once the loan was authorised and his company bank account was in receipt of the funds, most of the funds were not used for the legitimate trading activities of the company or to settle any of its liabilities, but rather transferred to Gibson’s personal account, whereby they were used for third party payments or cash withdrawals.

After an investigation involving His Majesty’s Revenue and Customs records, it was clear that Gibson’s company was not trading during between the years of 2019-2021. This showed that Gibson had exaggerated his company’s turnover to enable him to fraudulently apply for the maximum amount of loan and then used the majority of the funds obtained to support his personal lifestyle.

Gibson pleaded guilty and was convicted of two fraud related counts:

*Fraud by False Representation (£50,000) in relation to Combined Developments Liverpool Ltd on 22.11.2023

*Fraud by Abuse of Position (£45,412) in relation to Gibson Bowers Developments Ltd on 13.12.2023

Pursuing fraudsters

Arslan Khan (Unit Head for the Serious Economic and Organised Crime International Directorate at the Crown Prosecution Service) said: “Craig Gibson took advantage of a Government system designed to protect and support businesses through the COVID-19 pandemic. Rather than using the funds for legitimate business purposes, Gibson diverted them for his own personal use and to fund his lifestyle.”

Khan added: “The Crown Prosecution Service and investigative agencies will continue to pursue fraudsters who dishonestly enrich themselves from Government support grants and loans. The Proceeds of Crime team will now commence confiscation proceedings to ensure Gibson does not financially benefit from his criminality.”

Gibson will also have to serve 20 Rehabilitation days.

The Government-backed COVID-19 Bounce Back Loans were introduced during the pandemic and offered economic support to business owners negatively impacted by the virus, with the reassurance that the money could be paid back over a six-year or ten-year period at a low interest rate.