Businessman found guilty of Government backed COVID 19 bounce back loan fraud

An entrepreneur was convicted today (19 July 2024) of fraudulently obtaining a COVID-19 Bounce Bank Loans to a value of £50,000.

Gerald Smith, 69, was found guilty of one count related to fraud and will be sentenced on 20 September.

On one occasion, Smith submitted a fraudulent application for the loan. On one application, he claimed he needed the money to help his business and succeeded in obtaining a £50,000 loan. Once received, he used the funds for his personal use. 

After the City of London investigation and Crown Prosecution Service review it was uncovered that he used the £50,000 bounce back loan for personal expenses and to pay an existing £22,000 court costs order. 

Kevin Hansford of the Crown Prosecution Service said: 

“Gerald Smith took advantage of a government system designed to protect and support businesses through the Covid pandemic. Rather than using the funds for legitimate business purposes, Smith diverted them for his own personal use and to fund a court costs order. 

“The CPS and investigative agencies will continue to pursue fraudsters who dishonestly enrich themselves from government support grants and loans.” 

Detective Inspector Andrea Bakewell, from the fraud operations team at the City of London Police said: 

“When many businesses were struggling to keep their head above water during the COVID pandemic, criminals were making use of the financial aid on offer. 

“Gerald Smith demonstrated an incredible amount of manipulation, conceit and greed as he exploited the bounce-back loan scheme offered by the government. This level of exploitation during one of the hardest periods this country has ever faced is something we will not tolerate."