Save content
Have you found this content useful? Use the button above to save it to your profile.
A picture of pizza
istock_pizza_LauriPatterson

Pizzeria owner banned over unexplained bounce back loan

by

The Insolvency Service has banned a Glasgow pizzeria owner after discovering an unaccountable £50,000 bounce back loan and accounting records not up to date. 

 

8th Mar 2022
Save content
Have you found this content useful? Use the button above to save it to your profile.

Glasgow pizzeria owner Ilir Bajrami has been banned as a director for eight years after he could not explain what his £50,000 bounce back loan was used for. 

The Insolvency Service pulled up the sole director of Kleida Pizzeria after it emerged the business went into liquidation with a substantial tax bill. 

The pizzeria entered a creditors voluntary liquidation, and the Insolvency Service swooped in shortly after and discovered Bajrami had failed to co-operate with the liquidators and didn’t provide company accounting records, despite numerous requests.

Central to Bajrami’s ban was his inability to explain a £50,000 bounce back loan. Further suspicion was raised when it emerged that seven days after receiving the loan in May 2020, Bajrami transferred £90,000 to an unknown account. The Insolvency Service reported that the £50,000 bounce back loan was included within this £90,000. 

In addition to unanswered questions around the bounce back loan, the regulator also raised concerns around £650,000 worth of income in the pizzeria’s accounts and £736,000 the company spent, due to a lack of records. 

Director gets banned

Following the official investigation, Bajrami was banned for eight years from 24 February and is not able to directly or indirectly form or manage a company.  

Robert Clarke, chief investigator for the Insolvency Service, said: “The inability to account for the company’s income and expenditure is made all the more serious by the fact that £50,000 of that income relates to government funds to support businesses during the pandemic, which have now disappeared.”

Bounce back loan bans

This is the latest in a series of disqualifications dished out by the insolvency service due to questions over bounce back loans. In November last year we reported that the Insolvency Service banned a Rotherham-based director after he set up three companies with the sole purpose of obtaining three bounce back loans. 

Since then the Insolvency Service has banned other directors for similar acts. In January this year, for example, two directors of a specialist tuition centre were collectively banned for 21 years. 

The company’s annual turnover was a maximum of £7,680, which meant it didn’t meet the £8,000 minimum annual turnover threshold for the bounce back loan. However, the director fraudulently inflated the company’s annual turnover to £200,000, received a bounce back loan and then went into voluntary liquidation in January 2021. 

Replies (9)

Please login or register to join the discussion.

avatar
By Justin Bryant
08th Mar 2022 15:20

I bet this BBL bloke is thinking "So what?" and "I've gotten away with it!"

Thanks (6)
Replying to Justin Bryant:
avatar
By Paul Crowley
08th Mar 2022 16:27

Agree
All a waste of time
Why were not records recreated (if needed by estimation) and the overdrawn directors loan recovered

No chance that any of the doubtful loans will be recovered based on this

Thanks (0)
Replying to Paul Crowley:
avatar
By Hugo Fair
08th Mar 2022 19:23

The only 'stick' understood by people behaving like this is one that causes them personal grief (preferably via confiscation of assets but if necessary with jail sentences of serious duration).

Being banned from being a Director is as effective a deterrent as when courts put 'points on a driving licence' for someone who's been convicted, amongst other things, of driving without a valid licence!

Thanks (5)
Replying to Paul Crowley:
paddle steamer
By DJKL
09th Mar 2022 12:22

Also agree- all bark but no teeth.

Thanks (0)
avatar
By sjmaccounting
08th Mar 2022 20:44

Add the unexplained payments to DLA and demand repayment from the director. If not fully settled then bankruptcy

Thanks (4)
avatar
By jayesh21
09th Mar 2022 09:44

Most of these people have f***d off from the country taking these loans.

I was in egypt recently and came across many business owners who were in UK during covid and now returned back to their country taking hundereds of thousand pounds in BBL, etc.

Do you think they have intentions to return now? I have my doubts.

Thanks (1)
avatar
By North East Accountant
09th Mar 2022 10:26

So he trousers £90K....£50K of which he's ultimately robbed from the hard working British taxpayer.....and gets a slap on the wrists for being a naughty boy.

His next venture (unless he's retired laughing all the way to the bank) will be in a relative/friends name with zero chance of anyone in authority doing anything about it ........and on he goes.

Who says crime doesn't pay.

Thanks (6)
avatar
By michael1958
09th Mar 2022 11:05

So, he gets to sit on the naughty stool and allowed to dream up another scheme or be handed one by the government. The BBL was an ill conceived scheme administered by half wits at the treasury. Banks warned them that this was open to abuse and it would be abused. Same with SEISS and all the other schemes. They need to have the legislation onside and use it but on the grounds that a lot of staff are still hiding at (working from) home and have no interest in doing anything about it..... I have noticed lots of new Mercs, Porche and BMWs clogging up the drive ways

Thanks (0)
avatar
By moneymanager
10th Mar 2022 22:17

What exactly is an "unknown account"? As the taking of the loan in the first place appears to be fraud, why are we not seeing a prosecution and a potential POCA recovery?

Thanks (1)