Arrests Made Over Coronavirus Loan Fraud

Police believe the fraudsters applied for the government-backed Bounce Back loan scheme using fake companies. CREDIT: Freepik

There have been two arrests so far related to fraudulent applications for loans intended to help companies during the coronavirus pandemic.

The two men are suspected of money laundering and fraud by creating fake companies and using these to apply for the Covid scheme known as Bounce Back loans.

The policy was introduced by the Chancellor Rishi Sunak in May and is designed to support small businesses during the coronavirus crisis by micro-loans, where the government pays the interest for the first 12 months.

Up until now, police have frozen 10 accounts, with money totalling £553,305 and continue to investigate both fraudsters and potential victims.

The way the investigation began was quite by chance and started with police officers doing a routine drug search on a car in West London on June 17. The young man who owned the vehicle had travelled to Holland Park to meet another man and set up a bank account, in exchange for £300. Both men were then arrested, suspected of fraud and money laundering.

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Eleisha Kennedy

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