A man whose company was liquidated in 2022 has been banned from acting as a director for 10 years after he fraudulently claimed £28,000 via the Bounce Back Loan scheme.

Umar Ghafoor, 36, whose last known address was Gordon Road, Nelson, told the Bounce Back Loan scheme that his firm, Forge Exhaust and Tyres Ltd, had made £120,000 in 2019, despite only being incorporated on November 2, 2018.

A note from the Insolvency Service stated Ghafoor’s actual turnover for the 2019 calendar year was just £3,122.

The Bounce Back Loan scheme was set up to help businesses that were struggling through the coronavirus pandemic and allowed a company to borrow between £2,000 and a maximum of £50,000, based on 25 per cent of the company’s turnover.

Ghafoor, in applying for £28,000 in May 2020 for Forge Exhaust and Tyres, was not entitled to the money as a review of the company’s bank account for the 2019 calendar year showed income paid in totalling £3,122.

Based on that lower figure, Forge Exhaust and Tyres Ltd would not have been entitled to any Bounce Back Loan at all.

The Insolvency Service said when Ghafoor’s company went into liquidation in 2022 the £28,000 loan remained outstanding.

As a result, he has been disqualified from being a director of any company until February 27, 2034.

The Insolvency Service note states: “Umar Ghafoor caused Forge Exhaust and Tyres Ltd to breach the terms and conditions of the Bounce Back Loan (BBL) scheme by applying for a BBL of £28,000 on May 29, 2020 to which it was not entitled.

“Consequently, Forge received monies it was not entitled to from the BBL scheme, in that the BBL criteria allowed a company to borrow between £2,000 and a maximum of £50,000 based on 25 per cent of the company’s turnover.

“The turnover figure required was that for the calendar year 2019.

“Forge was incorporated and began trading on November 2, 2018.

“In the BBL application form completed on May 29, 2020 the turnover for the 2019 calendar year was stated to have been £120,000.

“A review of the company bank account for the 2019 calendar year shows income paid in totalling £3,122.

“Based on this turnover figure, Forge would not have been eligible for a BBL.

“On June 1, 2020 Forge received a BBL of £28,000 which remained outstanding at liquidation.”