An Arnold man has been given a six year director ban after misusing a £50,000 government loan. Lee Mankelow, 42, claimed the money from the Bounce Back Loan scheme during the pandemic.
The scheme was set up to help small and medium sized businesses during the coronavirus outbreak, with a maximum loan of £50,000. Mankelow claimed the full amount to support his timber company, Wolf Timber Ltd, which had a registered office address in Nottingham.
However, he paid all the loan to a former director of the company which breached the terms. Wolf Timber Ltd entered into liquidation in December 2020, which was before Wolf Timber Ltd’s insolvency triggered an investigation by the Insolvency Service.
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Investigators found that Mankelow applied for a £50,000 Bounce Back Loan in June 2020, after the company had seen a rise in online business during Covid lockdowns. Mankelow, however, transferred the full £50,000 the day after he received it to a former director of the company, breaching the terms of the loan which stated that the money must be used to support the business.
Investigators found no evidence to support Mankelow’s claims that the money was used to pay the wages, bonuses, dividends and expenses of the former director who had stayed on as an employee of the company.
The disqualifications prevent Mankelow from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.
Tom Phillips, Assistant Director of Investigation and Enforcement Services for the Insolvency Service, said: “Bounce Back Loans were put in place to provide vital support to help viable businesses through the pandemic. Mankelow completely abused the government-backed loans to further their own interests, which was totally unacceptable.
“Mankelow’s ban should serve as a stark warning to other directors who may have misused financial support during the pandemic that we have the ability to bring your actions to account and remove you from the corporate arena.”
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