Taxi driver hit with 11-year sanctions after falsely claiming two Covid loans

23rd August 2024

A London taxi driver hit with 11-year sanctions after falsely claiming £100,000 of Bounce Back Loans and failed to spend the money on his businesses.

The investigation found that Ahmad claimed £50,000 for his delivery business in July 2020, the maximum allowed under the scheme. He applied for a second £50,000 loan – this time for his taxi business in September 2020. The official receiver also discovered that Ahmad had failed to use the loan money for the economic benefit of either of his trading businesses, a breach of the scheme’s conditions. 

The rules of the Bounce Back Loan scheme allowed businesses to claim up to 25% of their 2019 turnover, with a maximum loan of £50,000. The money had to be used for the economic benefit of the business. 

The official receiver secured an 11-year Bankruptcy Restrictions Undertaking (BRU) from Ahmad, in which he did not dispute that he had obtained a £50,000 Bounce Back Loan for each of his businesses by overstating their levels of turnover and that he had not used the loans for the economic benefit of his trading businesses. 

The undertaking extends his original bankruptcy restrictions from the standard 12 months until 19 August 2035. 

Bankruptcy restrictions ban Ahmad from acting as a company director without the court’s permission and from borrowing more than £500 without declaring that he is subject to the restrictions. They also prevent him from holding certain roles in public organisations. 

The Secretary of State for Business and Trade accepted the Bankruptcy Restrictions Undertaking from Hafiz Ahmad on 20 August 2024. 

Samantha Crook, Deputy Official Receiver at the Insolvency Service, said “Hafiz Ahmad abused taxpayers’ money not once, but twice, taking out two separate loans based on false information, claiming more money than his businesses were entitled to receive. 

“These long-lasting restrictions will help to protect people from financial wrongdoing by limiting Ahmad’s access to credit and making others aware that there are sanctions against him.”