Fraudster jailed after securing £50,000 Covid loan

The former manager of a Nottingham city centre chicken shop was jailed after securing £50,000 in Covid support, despite having sold the business the previous year.

Mujeebullah Khan applied for the maximum-value Bounce Back Loan on behalf of Chunky Chicken in May 2020. However, Khan and his business partner had sold the business based on Shakespeare Street in April 2019.

Khan was sentenced to 22 months in prison when he appeared at Nottingham Crown Court. Khan falsely stated that Chunky Chicken was carrying on its business at the start of March 2020 as part of the application.

All £50,000 was transferred two months later to a third party to repay a business debt.

Khan was declared bankrupt in May 2021 and signed an eight-year Bankruptcy Restrictions Undertaking in September of that year, restricting him from being able to borrow more than £500 without disclosing his bankrupt status.

David Snasdell, Chief Investigator at the Insolvency Service, said “Mujeebullah Khan’s offending was very simple – he secured £50,000 in Covid support for a business he had sold the previous year.

“The Insolvency Service continues to prosecute Covid fraudsters and will take action against anyone who abused these schemes intended to help legitimate businesses during the pandemic.”