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Sunderland scaffolder got a Covid loan he was not entitled to and used it to pay off third parties UK News

A Sunderland scaffolder who secured a Covid-19 relief loan and used it to pay off third parties has had his bankruptcy restrictions extended by 10 years.

Lee Thomas Hobson, 34, of Sunderland, was marketed as LTH Scaffolding, but in December 2019 he started working at a separate company.

However, that did not stop him from applying for a government backed £ 50,000 Bounce Back loan on behalf of LTH Scaffolding which he received on May 12, 2020.

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But rather than using the loan to cover ongoing business costs, the money was used to pay off third parties.

Hobson was declared bankrupt on October 26, 2020, but due to his inappropriate request for a Bounce Back loan and the risk Lee Hobson posed to other creditors, the official receiver has sought to further extend his bankruptcy restrictions.

His bankruptcy pledge extends his restrictions by 10 years, which means he’s limited to credit he can access, and also can’t act as a business owner without court permission.

Richard Gill, the official receiver, said: “Mr. Hobson was not entitled to the loan because he had already stopped trading after taking a job. This money was not used for its intended purpose.

“Bounce Back Loans are meant to enable businesses to survive Covid-19 lockdowns and be used to bring economic benefit to a business.

“It is hoped that this commitment to restrict bankruptcy will have a chilling effect on those who might want to abuse the government’s Covid-19 aid programs.”

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