Man jailed after using £50,000 Covid business loan to buy a house
A man who used a state -supported Covid loan to buy a house was imprisoned for fraud.
In June 2020, 34 -year -old Mohammed Rashidzadeh received a £ 50,000 return loan for his company Cozy Bed Ltd.
However, within a few days, he transferred the money to his personal account and used it to buy a three -bed semi -detached house in the Almondbury area of Huddersfield.
Now, Bangor in North Wales, Rashidzadeh from Caellepa, tried to close the company just eight days after the payment of funds, and applied to hit the house records without informing the bank that provides the loan.
He was convicted of crimes within the scope of the Fraud Law and the Law of Companies, and after a four -day hearing at the Leeds Crown Court, the law was sentenced to 18 months in prison after a four -day hearing.
Bankruptcy Service Chief Inspector Mark Stephens said: “Muhammad Rashidzadeh’s discomfort was two -way and deeply cynical. Immediately, instead of supporting his job through Pandemik, he returned to £ 50,000 he bought to buy a house.
“The second crime has been calculated equally-trying to solve its company without proper informing its creditors, including the bank that provides the book. The strike process is available to protect the interests of creditors, and it is a crime that weakens the entire institutional framework from the loans.
“The bankruptcy service remains determined to take a strong action against the return of the credit frauds. Government -supported plans were a life line for legitimate businesses during an unprecedented crisis, and we will continue to follow those who deliberately exploit this support at the expense of taxpayers.”
In March 2019, the court documents showed Rashidzadeh Incorporated Cozy Bed Ltd as an online bed retailer and became the only director. While applying for a loan, the company’s annual turnover announced that it was £ 203,000.
Two days after the loan arrived in June 2020, he contacted lawyers in Morton Green to start buying a house of £ 116,000. At the end of the month, it was moved to personal financing from the entire £ 50,000 business account and was later transferred to lawyers as part of the property agreement.
In October 2020, Cozy Bed Ltd was officially terminated and no refund was made on the loan. Rashidzadeh then sold the house in August 2021.
The bankruptcy service confirmed that it was trying to get back the funds with the 2002 Crime Revenues Law.
