Covid-con scaffolding boss from Pontefract ordered to pay back £100,000 he swindled
The director of a scaffolding company who fraudulently claimed £100,000 in Covid “bounce back” loans has been ordered to repay the full amount, with interest.
Mark Degnan was convicted earlier this year and given a suspended sentence, but he has now been ordered to cough up the two loans he illegally received, plus £15,000 accumulated interest.
The 56-year-old had claimed two loans during the pandemic, falsely maintaining his company had a turnover of half-a-million pounds.
Degnan, of Wellhams Road, Pontefract, appeared at Leeds Crown Court this week where it was heard he had already paid off more than £55,600. He now has six months to pay the remaining £59,000.
If he fails to do so, he faces a year behind bars. This comes on top of Degnan receiving a two-year suspended sentence in January this year.
Alexander Grierson, head of asset recovery at the Insolvency Service, said: “Mark Degnan cynically exploited a scheme designed to help small businesses during the pandemic by exaggerating his company's turnover and obtaining two loans when companies were only allowed one.
“Securing this confiscation order is important as it means Degnan must pay all the money back plus interest or go to jail.
“The Insolvency Service remains committed to pursuing fraudsters who abused the Bounce Back Loan Scheme and will continue to use all available powers to ensure criminals do not financially benefit from their illegal activities.”
Degnan claimed in both fraudulent applications to separate banks in May and July 2020 that MBL Scaffolding Services Ltd’s turnover was £500,000.
These applications were made despite dormant company accounts being filed for 2019.
Investigators found that the company’s turnover in 2019 was closer to £162,000, meaning that it was still ineligible for the full amount.
Under the rules of the scheme, businesses could borrow up to a quarter of their annual turnover, with a maximum loan of £50,000.
He has been disqualified as a company director for five years and ordered to complete 50 hours of unpaid work.