HomeBussinessAction taken against Devon business owner following £250,000 covid loan abuse

Action taken against Devon business owner following £250,000 covid loan abuse

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  • Matthew Littlechild claimed five separate £50,000 Bounce Back Loans for his businesses, including a Totnes pub 

  • He overstated his turnover for each business to falsely claim a quarter of a million pounds from the scheme 

  • Littlechild must now abide by 13 years of stringent bankruptcy restrictions which prevent him acting as a company director or borrowing more than £500 without declaring the sanctions against him 

A businessman from Devon is subject to 13 years of bankruptcy restrictions after he falsely claimed Bounce Back Loans worth a total of £250,000 for five of his businesses. 

Matthew Littlechild, 37, from Mount Pleasant Road in Newton Abbot, agreed to abide by the tough sanctions after the official receiver found he had overstated the turnover of five separate businesses to claim the maximum £50,000 Covid support loans for each one.

Samantha Crook, Deputy Official Receiver at the Insolvency Service, said: 

Matthew Littlechild repeatedly took advantage of a scheme designed to help businesses in genuine need, and abused taxpayers’ money when the country was facing one of its toughest times. 

We are pleased that these lengthy bankruptcy restrictions will help to protect the public from further financial harm.

Littlechild set up four of the businesses involved in the abuse of the scheme between April 2018 and November 2019.  

They included the Matthew Littlechild Business Consultancy, an event catering business known as Pig Out, Treby Essentials home food delivery and the ML Properties cleaning business. Littlechild also began running a pub, the Sea Trout Inn in Staverton,Totnes, in November 2019. 

Between May and June 2020 he applied for £50,000 Bounce Back Loans on behalf of all five businesses.  

Under the rules of the scheme, businesses could borrow between £2,000 and £50,000 of government-backed loans, based on their 2019 turnover.  

Littlechild received loans for his businesses worth £250,000, but later became bankrupt, in January 2024.  

The official receiver investigating the cause of his bankruptcy discovered that the businessman had provided false information about the turnover of all five businesses, to claim the money. 

Littlechild signed a Bankruptcy Restrictions Undertaking (BRU) which extends the restrictions imposed by his original bankruptcy until 20 August 2037.  

The restrictions prevent him from acting as a company director without the court’s permission, and borrowing more than £500 without declaring he is subject to restrictions. He is also prevented from holding certain roles in public organisations. 

The Secretary of State for Business and Trade accepted a Bankruptcy Restrictions Undertaking from Matthew Littlechild on 21 August 2024. 

The Official Receiver continues to review potential asset realisations following the investigations. 

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