A Bradford used car dealer convicted of fraudulently obtaining a £50,000 Covid Bounce Back Loan has been ordered to repay £66,917.
Javed Akhtar, 49, secured the maximum loan available under the scheme after falsely claiming his dealership, Natasha Motors Ltd, had a turnover of £400,000. He was handed the confiscation order at Bradford Crown Court on August 6 and has three months to repay the money.
If Akhtar fails to make the payment, he could face six months in prison and would still be required to repay the outstanding amount.
– Ordered to repay £66,917 over £50,000 Covid loan fraud
– Falsely claimed company turnover was £400,000
– Previously handed a suspended prison sentence
A Bradford used car dealer convicted of fraudulently obtaining a £50,000 Covid Bounce Back Loan has been ordered to repay £66,917.
Javed Akhtar, 49, secured the maximum loan available under the scheme after falsely claiming his dealership, Natasha Motors Ltd, had a turnover of £400,000. He was handed the confiscation order at Bradford Crown Court on August 6 and has three months to repay the money.
If Akhtar fails to make the payment, he could face six months in prison and would still be required to repay the outstanding amount.
He was sentenced in March to 20 months in prison, suspended for two years, and ordered to complete 250 hours of unpaid work after admitting fraudulently applying for the Bounce Back Loan in May 2020.
Dealer overstated turnover
The Insolvency Service said Akhtar claimed Natasha Motors had an annual turnover of £400,000 when he applied for the loan. Investigators found that declaration was false.
During an interview under caution Akhtar described the business as “booming”, but gave inconsistent figures suggesting its 2019 turnover had been either £200,000 or £300,000.
Akhtar said the application had been completed on his instructions by the company’s accountant.
Natasha Motors subsequently entered liquidation in April 2021 and Akhtar failed to provide the liquidator with adequate accounting records.
He told investigators that “99%” of the Bounce Back Loan had been used to buy and sell used cars to a contact in Ireland.
Assets fund full repayment
Financial investigations by the Insolvency Service identified assets including three cars and a solar panel investment worth more than £150,000.
The Insolvency Service said these showed Akhtar had sufficient assets to repay the Bounce Back Loan in full, together with an uplift reflecting the change in the value of money since 2020.
Alexander Grierson, head of asset recovery at the Insolvency Service, said: “Javed Akhtar deliberately exploited a scheme designed to help genuine businesses survive the pandemic. Pursuing confiscation under the Proceeds of Crime Act is a priority for the Insolvency Service, ensuring criminals cannot hold on to the proceeds of their fraud.
“This order means Akhtar does not benefit from his dishonesty. He must now repay every penny of the money he fraudulently obtained.”
Akhtar was also disqualified as a company director in August 2023 for failing to deliver adequate accounting records. His six-year ban runs until August 2029.
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