A former east London decorator who obtained £145,000 of Covid Bounce Back loans has been ordered to pay compensation and banned from being a company director.
Ruxanda Guja, formerly of Bell Avenue, Romford, claimed £100,000 more than she was entitled to for her company, Roxy Contracts Limited, which she said dealt with “specialised construction activities”.
She applied to three separate banks for Bounce Back Loans during the course of 2020, obtaining one worth £45,000 and two maximum-value ones of £50,000 each.
The 40-year-old claimed more than she was entitled to for her company, Roxy Contracts, by overstating her firm’s turnover.
The High Court banned her from being a director for 13 years, starting from Christmas Eve, and ordered her to pay compensation of £107,038 and costs of £7,592.
Dave Magrath, Director of Investigation and Enforcement Services at the Insolvency Service, said: “The rules of the Bounce Back Loan Scheme were extremely clear. Businesses were only entitled to a single loan of a maximum of £50,000, depending on their turnover.
“Ruxanda Guja clearly breached the scheme by securing three loans for her company, receiving significantly more than she was entitled to in the process.
“This was taxpayers’ money and Guja now faces a director ban for the next 13 years in addition to repaying two of the loans back with interest.”
The court heard how Guja, the sole director of Roxy Contracts since the company was established in June 2017, first applied for a £45,000 Bounce Back Loan in early May 2020, claiming the turnover for her company was £500,000.
Then just one week later, Guja breached the rules of the scheme by requesting a £50,000 loan from a second bank, this time stating her annual turnover was £350,000.
Guja’s third application on behalf of Roxy Contracts was in October 2020, when she obtained a £50,000 loan by claiming an annual turnover of £250,000.
Compensation orders were made for the two £50,000 loans, which include interest at the rate in the loan agreements.
The disqualification order prevents her from being involved in the promotion, formation or management of a company, without the permission of the court.
Liquidators were appointed for Roxy Contracts in June 2021.
