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The Insolvency Service has extended the bankruptcy restrictions for scaffolder Lee Thomas Hobson for 10 years after he secured a Covid-19 relief loan he was not entitled to.
Hobson operated LTH Scaffolding until 2019 where he then began employment with a separate company.
Despite the company stopping trading, Hobson still applied for a government-backed Bounce Back Loan of £50,000 in the name of LTH Scaffolding which he received on 12 May 2020.
The money was then used to repay third parties rather than to meet ongoing business costs.
Hobson was declared bankrupt on 26 October 2020. Due to his improper application for the Bounce Back Loan and the risk he posed to other creditors, the Official Receiver sought to extend his bankruptcy restrictions further.
As a result of the untitled loan, Hobson’s bankruptcy undertaking restrictions were extended for 10 years, which means he is limited to what credit he can access, as well as not being able to act as a company director without the permission of the court.
Richard Gill, the official receiver, said: “Mr Hobson was not entitled to the loan as he had already stopped trading having taken up employment. This money was not used for the purpose it was intended.
“It is hoped that this Bankruptcy Restrictions Undertaking will act as a deterrent to others who may wish to abuse the government’s Covid-19 relief schemes.”
