Electrician given 11 years bankruptcy restrictions over covid loan scheme abuse

29th May 2024

A former electrician has had his bankruptcy restrictions extended for 11 years after claiming a £45,000 Bounce Back Loan to support his business during the pandemic despite not being self-employed at the time.

Andrei Moise from Mitcham in Surrey, received a £45,000 Bounce Back Loan in July 2020 to support his role as a self-employed electrician.

Under the rules of the scheme, self-employed people had to have been working as a sole trader on 1st March 2020 to be eligible for a loan. However, when Moise became bankrupt in May 2023, the Official Receiver discovered that he had ceased being self-employed in 2016.

Bounce Back Loans were supposed to be used for the economic benefit of the business, but Moise used the money for other purposes including some which was paid to third parties.

Bankruptcy restrictions include being prevented from acting as a company director without permission from the court, being unable to borrow more than £500 without declaring you are subject to restrictions and being barred from holding some roles of responsibilities, such as a charity trustee, school governor or certain posts in public sector organisations.

The restrictions usually last for 12 months – the duration of a standard bankruptcy – but if the Official Receiver thinks a bankrupt has been dishonest, they can apply to the court to extend the restrictions through a Bankruptcy Restrictions Order (BRO) for between two and 15 years.

The bankrupt may instead agree to sign a Bankruptcy Restrictions Undertaking (BRU), which has the same effect as an Order, but means the matter will not go to court.

The Secretary of State for Business and Trade accepted an 11-year Bankruptcy Restrictions Undertaking from Andrei Moise on 21st May 2024.

Mitzi Mace, Official Receiver at the Insolvency Service, said “Andrei Moise abused a government scheme which was designed to help businesses survive one of the toughest times for traders. The Insolvency Service will always act to protect the public from those who take advantage of taxpayers’ money.

“Mr Moise will be subject to tough restrictions for 11 years which will protect the public from further abuse.”