Nine-year ban for Dubai-based sales consultant who abused Covid support scheme
Director disqualified for Bounce Back Loan abuse
- Nazia Khan created a fictitious turnover to secure a £25,000 Bounce Back Loan for her company, which she claimed provided a business development consultancy service for items ranging from luxury vehicles to health and beauty products
- The company was dormant and was not entitled to the taxpayer-backed funds it received
- Khan has been banned as a company director until December 2033
A sales consultant who provided false information to secure a Covid loan has been banned as a company director for nine years.
Nazia Khan invented a turnover for her dormant business, called LC247 Limited, when she applied to a bank for a £25,000 Bounce Back Loan in July 2020.
The 50-year-old then used money from the company bank account to make payments of more than £23,000 and cash withdrawals for mainly non-business purposes.
Khan, who is now based in Dubai, described herself as a sales consultant with two decades of experience. She claimed her company provided a sales consultancy service in retail, fashion, luxury vehicles, consumer electronics and health and beauty products.
Kevin Read, Chief Investigator at the Insolvency Service, said:
Nazia Khan falsely claimed her company had a turnover of £100,000 when in reality it was not trading. The misleading information she provided on her application for a Bounce Back Loan meant she received £25,000 in taxpayers’ money she was not entitled to.
Khan also broke the rules of the scheme by not using all the money to support her business.
Tackling Bounce Back Loan misconduct remains a top priority for the Insolvency Service and we will not hesitate to take action when we identify such blatant abuse of the scheme.
Khan applied for a £25,000 Bounce Back Loan at the start of July 2020 when she was based in Southall, west London.
In the application, she claimed the turnover for LC247 was £100,000. Accounts filed with Companies House for the period ending in February 2020 showed that company was in fact dormant.
LC247’s accounts ending in February 2021 similarly showed minimal trading of just £2,321.
Under the rules of the government scheme, money from Bounce Back Loans also had to be used for the economic benefit of the applicant’s business.
However, analysis of company bank statements revealed payments of £23,407 and cash withdrawals of £3,232.
The majority of these payments were for non-business purposes such as rent for accommodation and small amounts spent on clothing from Primark and Zara.
LC247 entered liquidation in February 2022 with debts of more than £28,000.
The Secretary of State for Business and Trade accepted a disqualification undertaking from Khan, and her ban started on Thursday 5 December.
The undertaking prevents her from being involved in the promotion, formation or management of a company, without the permission of the court.
Further information
- Nazia Khan is of Nad Al Sheba, Dubai, United Arab Emirates. Her date of birth is 13 November 1974
- LC247 Limited (company number 11201230)
- Individuals subject to a disqualification order or undertaking are bound by a range of restrictions
- Further information about the work of the Insolvency Service, and how to complain about financial misconduct.