By The Nexus Gazette.
25th August, 2024.
In a recent court ruling, a father and daughter from Merseyside have been sentenced for their involvement in a £65,000 Covid-19 Bounce Back Loan fraud. Catherine Deegan, 43, and her father, Gerard Deegan, 65, were found guilty of exploiting a government scheme designed to support small businesses during the pandemic, using the funds for personal gain.
The Bounce Back Loan Scheme (BBLS) was introduced by the UK government during the Covid-19 pandemic to provide financial assistance to small businesses struggling to survive the economic downturn. The scheme offered loans of up to £50,000, with minimal checks, to ensure quick access to funds for businesses in need. However, the Deegans saw an opportunity to abuse this system.
Catherine Deegan, who managed two companies—Bootle Cars & Commercials Limited and Bootle Car and Commercial Limited—successfully applied for and received legitimate loans totaling £75,000 across both businesses. However, the fraud was uncovered when they secured an additional £65,000, which they were not entitled to under the scheme’s rules.
Investigations revealed that instead of using the additional £65,000 for the intended purpose of supporting business operations, Catherine Deegan diverted some of the funds for personal expenses, including renting a caravan. This misuse of taxpayer-backed loans was a blatant violation of the Bounce Back Loan Scheme’s terms, which stipulated that the funds should be used solely for business-related activities.
At Liverpool Crown Court, both Catherine and Gerard Deegan were handed sentences reflecting the severity of their actions. Catherine was sentenced to 10 months in prison, suspended for 18 months, and was also ordered to complete 150 hours of unpaid work. Her father, Gerard, received a 16-month prison sentence, also suspended for 18 months, and was disqualified from serving as a company director for 10 years. Additionally, Gerard was placed under an electronically monitored curfew, requiring him to remain at home between 6 pm and 6 am for the next eight months.
Claire Entwistle, Assistant Director of Operations at the Insolvency Service, issued a stern warning following the sentencing, stating, “Both of the defendants showed complete disregard for the scheme, and this behavior will not be tolerated by the Insolvency Service.” She emphasized the importance of maintaining the integrity of government support schemes, especially during times of crisis, and assured the public that authorities would continue to crack down on fraudulent activities.
The sentencing of Catherine and Gerard Deegan underscores the serious consequences of exploiting government aid programs. The Bounce Back Loan Scheme was intended as a lifeline for businesses facing unprecedented challenges during the pandemic. However, the actions of the Deegans and others like them not only undermine the scheme’s purpose but also erode public trust in such initiatives. As authorities continue to investigate and prosecute fraudulent claims, this case serves as a stark reminder that misuse of public funds will be met with justice.
Resources:
1.https://uk.news.yahoo.com/woman-obtained-65k-loan-fraud-204958902.html
2.https://www.gov.uk/government/news/merseyside-father-and-daughter-sentenced-for-covid-loan-fraud
3.https://www.bbc.com/news/articles/cx2xn1jj5deo