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Imran Mushtaq exaggerated the turnover of his IZ Business Consultants Limited company to obtain two £50,000 Bounce Back Loans
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Mushtaq made the fraudulent applications within a two-day period in early June 2020
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The 40-year-old has been given a suspended sentence and has pledged to pay the £100,000 back in instalments
A Derby-based business consultant who fraudulently obtained two Covid loans worth a combined £100,000 has been handed a suspended sentence.
Imran Mushtaq was the sole director of IZ Business Consultants Limited when he applied for two Bounce Back Loans for the company in June 2020.
Mushtaq was sentenced to 20 months in prison, suspended for 22 months, when he appeared at Derby Crown Court on Tuesday 13 August.
The 40-year-old was also ordered to complete 120 hours of unpaid work and pay costs of £1,000.
Mushtaq, of Mimosa Crescent, Derby, has committed to repay the £100,000 he fraudulently secured.
Claire Entwistle, Assistant Director of Operations at the Insolvency Service, said:
Imran Mushtaq deliberately overstated the turnover of IZ Business Consultants to secure two Bounce Back Loans when businesses were only entitled to a single loan.
This was government-backed taxpayers’ money and Mushtaq made matters worse by refusing to co-operate with Insolvency Service investigations into his conduct.
While we are pleased that Mushtaq has said he will repay the loans in full, this commitment was only made by him when faced with the prospect of a custodial sentence for his offences.
IZ Business Consultants was established in August 2013, describing its services on Companies House as offering retail sale of telecommunications equipment other than mobile telephones and other business support service activities.
Mushtaq applied for two Bounce Back Loans worth £50,000 each within a two-day period in June 2020, claiming his company’s turnover was £260,000 and £206,000.
The firm’s turnover for 2019 was closer to £83,000 in 2019, analysis of the company’s accounts revealed.
Mushtaq signed a declaration on applying for the loan stating that the funds would be used solely for the economic benefit of his business and not for personal use.
However, on receiving the loans, he paid more than £78,000 to a money transfer service based in California.
Mushtaq arranged an interview with investigators from the Insolvency Service but failed to attend.
No evidence was provided that any of the money was used for the benefit of his business.
Liquidators were appointed for IZ Business Consultants in October 2021.
