A County Durham restauranteur has been banned from any company involvement after he abused a covid support scheme.
Kamil Ozkan, from West Rainton, Houghton le Spring, was the sole director of Papa Peterlee Limited, trading as Martinos Italian Kitchen, on York Road in Peterlee, County Durham.
Papa Peterlee Limited successfully received a £50,000 Bounce Back Loan, which are designed to support businesses through the coronavirus pandemic. Investigations revealed that he caused the firm to transfer up to £37,500 to his personal account, instead of using the loan for the economic benefit of the company.
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Mr Ozkan is one of three directors of three separate companies who are now banned from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.
They each applied for Bounce Back Loans and caused their companies to abuse the Government-backed covid support scheme. Their actions were only uncovered after the businesses entered into liquidation.
The other two restauranteurs are Avin Habash, from Liverpool, and Malcolm Forbes, from Portsmouth. Mr Habash was the sole director of Hot Spot Liverpool Limited, which traded as Hot Spot, a takeaway in Liverpool city centre on Temple Court.
He caused the company to apply for a Bounce Back Loan and secured £50,000 claiming a turnover of £200,000. Investigators found that Hot Spot Liverpool Limited’s actual turnover was closer to £100,000. This would have entitled the eatery to approximately £26,000.
Mr Forbes was the sole director of Nija Bite Limited, which operated as a takeaway called Iroko Lounge on Onslow Road in Southampton and a mobile food stand. Enquiries uncovered that he received the maximum £50,000 Bounce Back Loan having submitted an application that declared a turnover of £225,000.
However, Mr Forbes grossly exaggerated the company’s turnover, which was closer to £24,000. This would have only entitled Nija Bite Limited to a £6,000 loan.
Bounce Back Loans were government-backed loans designed to support businesses through the covid-19 crisis. Under the rules of the scheme, companies were allowed to borrow up to 25% of their 2019 turnover, up to a maximum of a £50,000.
Mike Smith, Chief Investigator for The Insolvency Service, said: "Covid support schemes provided a lifeline to businesses, protecting jobs and preserving businesses. However, Malcolm Forbes, Avin Habash and Kamil Ozkan flagrantly abused that support when they either personally benefited from the loan or exaggerated turnover to secure more money than they were entitled to.
"The three restaurateurs have now been removed from the corporate arena and creditors will be protected from any further harm. Their bans clearly demonstrate that we will not hesitate to take action against directors who have abused Covid-19 financial support like this."
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