Restaurant Owner Jailed for Abusing Covid Loan
In a shocking turn of events, a restaurant owner has been sentenced to two-and-a-half years in prison for fraudulent activities related to a Covid Bounce Back Loan. Ilhan Kekec, the owner of a Turkish restaurant, not only illegally obtained the loan but also attempted to dissolve his company without informing creditors. The case, which unfolded in Isleworth Crown Court, serves as a cautionary tale of financial misconduct during the pandemic.
The fraudulent activities began when Kekec secured a £30,000 Bounce Back Loan by providing false information about his business’s turnover. Despite claiming a turnover of £125,000, investigations revealed that his restaurant had only operated for a brief period before the Covid lockdown.
Image for illustrative purposes
The Deceptive Practices
Kekec’s deceitful actions extended to withdrawing the loan amount in cash and using it to clear personal debts. Subsequently, he made a deliberate attempt to dissolve his company, citing economic inviability as the reason. However, he failed to fulfill his statutory duty of informing creditors about the voluntary strike-off application within the required timeframe.
The severity of Kekec’s actions is underscored by the fact that he never intended to repay the loan, as confirmed by Julie Barnes, Chief Investigator at the Insolvency Service. Barnes highlighted the dishonesty of Kekec’s behavior and emphasized the repercussions he now faces.
Legal Consequences and Sentencing
Following a jury’s guilty verdict in December 2023, Kekec was sentenced to imprisonment for two counts of fraud by false representation and violations of the Companies Act. In addition to the jail term, he has been banned from acting as a company director for three years.
The sentencing judge emphasized the gravity of Kekec’s offenses, noting the deliberate nature of his fraudulent activities. Kekec’s sentencing also includes confiscation proceedings scheduled for the near future.
Conclusion
The case of Ilhan Kekec serves as a stark reminder of the legal and ethical responsibilities that come with financial transactions, especially during times of crisis. The repercussions of fraudulent activities, as demonstrated by Kekec’s actions, are severe and far-reaching. This case underscores the importance of transparency and integrity in financial dealings, particularly in the context of government support schemes.
For more information on this case and similar instances of financial misconduct, stay tuned for updates on MortgageWatch.
By Laura Wilson
