Fraudulent Loan Applications Lead to Conviction
Prashant Jobanputra, a 41-year-old executive of a London-based printing company, was recently convicted for fraudulently obtaining two Bounce Back Loans during the COVID-19 pandemic. The Old Bailey court sentenced him to 18 months in prison, which has been suspended for the same duration, and he was subjected to a fine of £5,000 and a three-year disqualification from holding directorship roles.
The U.K. Insolvency Service stated that Jobanputra knowingly applied for two loans of £50,000 each, despite the government scheme specifying that businesses were eligible for only one loan. The fraudulent actions took place within a five-day period in 2020.
Background on the Bounce Back Loan Scheme
The Bounce Back Loan scheme was introduced in May 2020 by then-Chancellor Rishi Sunak to aid small and medium-sized enterprises affected by the COVID-19 lockdowns. The loans, which ranged from £2,000 to £50,000, were guaranteed by the government, requiring businesses to use the money to purchase assets that would benefit their operations.
Jobanputra’s company, Genesis Web Limited, was among many that turned to this scheme for financial relief due to the severe impact of the pandemic. However, Jobanputra’s actions deviated from the intended purpose of the scheme.
The Fraudulent Actions Unveiled
Application Details and Misrepresentation
Investigation revealed that Jobanputra applied for the second Bounce Back Loan in July 2020, claiming it was his first application. He fraudulently declared that he had not previously applied for any Bounce Back Loan, which was a blatant violation of the scheme’s regulations.
According to David Snasdell, Chief Investigator at the Insolvency Service, “Prashant Jobanputra fraudulently applied for two Bounce Back Loans when the rules were clear—businesses were only allowed one. We are conducting further investigations to recover the remaining funds.” Jobanputra managed to repay £15,371 of the second loan by November 2025, but £35,000 remains outstanding and is being pursued under the Proceeds of Crime Act 2002.
Consequences for the Company
Genesis Web Limited, which specialized in printing personalized items, was registered in November 2004 and registered with Companies House, with Jobanputra as the sole director. The company faced significant financial difficulties post-application and ultimately went into liquidation in October 2021, before being dissolved in March 2024.
In his interviews during the investigation, Jobanputra claimed that the pandemic had heavily impacted his business, admitting to not reading the loan agreement thoroughly, which clearly stated that only one loan was permissible under the scheme. His lack of due diligence exemplifies a broader issue of oversight that has emerged in the wake of pandemic relief efforts.
Detection and Prosecution of Fraud
Jobanputra’s conviction marks a crucial step in the U.K. government’s ongoing efforts to curb fraud in COVID support schemes. As the financial burden of the pandemic took a toll on many genuine businesses, instances of fraudulent applications raised concerns about the integrity of the relief programs.
The Insolvency Service has reiterated its commitment to tracking down fraudsters who exploited these government provisions meant to support struggling businesses. “Tackling COVID support scheme abuse remains a key priority for the Insolvency Service, and we will continue to track down and prosecute fraudsters who stole from the public purse during a national emergency,” Snasdell added.
Ongoing Investigations
The investigation into Jobanputra’s case is part of broader efforts by U.K. authorities to investigate various fraudulent activities related to COVID relief programs. Many firms and individuals who mismanaged these funds, either through fraudulent applications or misrepresentation, are under scrutiny.
The regulatory bodies involved are working diligently to recover any misappropriated funds and ensure accountability. The Bounce Back Loan scheme itself has faced criticism for insufficient checks, which allowed some individuals to exploit the system.
Public Sentiment Regarding Financial Fraud
The revelation of Jobanputra’s fraudulent activities has sparked discussions on social media platforms regarding ethics in business during crises. Many users expressed disappointment that some companies chose to commit fraud rather than use relief funds responsibly.
Industry experts emphasized the importance of accountability in financial management and urged business leaders to adhere to ethical practices, especially during challenging times when government support is critical for survival.
Final Thoughts
The U.K. government’s continuous efforts to combat fraud in the Bounce Back Loan scheme reflect a commitment to protecting public funds and ensuring that financial assistance reaches the businesses that genuinely need it. As investigations continue, more cases may surface, urging a re-examination of how relief funds are administered moving forward.
Jobanputra’s sentencing serves as a warning for others who may consider exploiting such programs. While financial support was designed to assist struggling enterprises, any form of deception will be met with stringent legal consequences.