Former Director jailed for Bounce Back Loan fraud

The former Director of a property maintenance company has been jailed for two years and one month for fraudulently obtaining a £50,000 Bounce Back Loan (BBL) following an investigation by the Insolvency Service.

Craig Smith set up C.A.S. Property Maintenance (Midlands) Ltd in April 2020. In August the same year, he applied for a Covid BBL using his own name, as the loans were only available to businesses trading from the beginning of March 2020.

In his application, Smith claimed his annual turnover was £200,000 when in fact it was only £33,578. He resigned as a Director in July 2021 without filing accounts for the company, which was dissolved in 2022.

Smith pleaded guilty to fraud by false representation at Wolverhampton Crown Court in August 2025 and was sentenced to prison in the same Court on 17 October 2025.

As the Chief Investigator at the Insolvency Service said after the sentencing, Smith “showed deliberate disregard for the taxpayer-backed scheme”, adding that his sentence “reflects the seriousness of his fraudulent behaviour, and the importance of honesty and integrity when running a company.”

Roger Isaacs, National Technical Director of NIFA, said that the misuse of Bounce Back Loans is taken extremely seriously by the authorities, not least because the scheme relied on self-certified figures and a high degree of trust.

He adds, “In BBL cases the investigation usually centres on whether the turnover declared bore any resemblance to the business’s actual trading activity. When the figures are overstated or invented, the forensic evidence tends to speak for itself.

“Once bank records, accounting data and trading history are examined in detail, it becomes clear very quickly whether the loan was obtained on a false premise. That is why these matters so often lead to prosecution and custodial sentences.”

Roger added that the Insolvency Service’s retrospective powers mean directors cannot assume that dissolving a company will shield them from scrutiny.

“Anyone contacted about a Bounce Back Loan investigation should seek specialist advice as soon as possible. A forensic review can help demonstrate whether the funds were used within the scheme’s rules or, where misconduct is alleged, establish the true extent of any wrongdoing.”

Sources: Insolvency Service

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