Insolvency Service cracks down on other bouncing loan abusers

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The Insolvency Service has successfully secured restrains against a gym operator and a roofer after they falsely applied for rebound loans.

In separate claims, Junaid Dar (31), from Birmingham, and David Michael Godderidge (40), from Tamworth, falsely claimed nearly £60,000 from the Bounce Back Loan scheme, intended to support businesses during the pandemic.

In the case of Junaid Dar, the Insolvency Service began investigating his conduct after his company, JDarPT Ltd, went into liquidation in July 2021.

Investigators found that Junaid Dar legitimately applied for a Bounce Bank loan after submitting accurate financial statements and in May 2020 received £13,000.

However, Dar also applied for additional loans through two separate financial institutions. The company received a total of an additional £32,500 in loans it was not entitled to.

Junaid Dar is now banned from running businesses for 11 years, starting April 27, 2022.

David Godderidge filed for bankruptcy in October 2021 and declared himself a self-employed roofer.

While valuing David Godderidge’s assets to make payments to his creditors, the Official Receiver discovered in September 2020 that he had provided incorrect information to secure a much higher bounce loan than he was entitled to.

The independent roofer had a third party apply for the loan on his behalf using inflated turnover figures before spending the £13,000 bounce-back loan on gambling in just 3 weeks.

Because of the risk he posed to other creditors, the Official Receiver sought to extend David Godderidge’s bankruptcy restrictions. His bankruptcy pledge extends his restrictions by 7 years and means he is limited to the credit he can access and he cannot act as a corporate officer without court permission.

In either case, the liquidator and trustee in bankruptcy are assessing Junaid Dar and David Godderidge’s ability to repay the funds and will sue if they can afford it.

Sue Macleod of the Insolvency Service said:

Rebound loans were made available to business enterprises affected by the pandemic and were issued on the basis of accurate financial statements.

Junaid Dar and David Godderidge cynically asked for far more loans than they were entitled to and clearly thought they could get away with it. Fortunately, our interventions revealed their abuses and their restrictions will prevent them from abusing their position in the future.

Notes to Editors

Junaid Dar is from Birmingham and his date of birth is February 1991. Company JDarPT Ltd (company registration number 10690408).

David Michael Godderidge is from Tamworth, Staffordshire and his date of birth is February 1982. Details of his bankruptcy restraining undertaking are available at Individual insolvency register.

More information about the work of the insolvency service and how to file a complaint for financial misconduct.

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