LONDON, Dec. 11 -- The government of the United Kingdom issued the following news:
*
Derby-basedTemidolaOjelabiillegally obtained£80,000 in Covid support by making two separate Bounce Back Loan applications
*
Funds were spent on share dealing platforms instead of supporting his business through the pandemic
*
The 43-year-old has been jailed and banned as a company director following investigations by the Insolvency Service
ADerbybusinessmanwhousedCovid support scheme fundson online trading platformshas beenjailed.
TemidolaOjelabisecured £80,000 across two Bounce Back LoanapplicationsforPlatinum Gates Limitedin 2020when businesses were only entitled to a single loan.
Money from the loans was then usedon online trading platformswhen it should have been spent supporting his business.
Ojelabi,43,of Glossop Street, Derby, wassentenced to two years and four months in prisonat Derby Crown Court on Wednesday 10 December.
He was alsodisqualified as a company director for eight years.
David Snasdell,Chief Investigatorat the Insolvency Service, said:
TemidolaOjelabiexploited a scheme designed to support small and medium-sized businesses through the pandemic, securing two Bounce Back Loans whenyou were only allowed one.
Two different turnover figures were given on eachapplication,and the funds were not used for the economic benefit of his business-a fundamental requirement of the scheme. Instead, money was spent on online trading platforms.
Ojelabi'sactions showed acomplete disregard for taxpayer money and the rules designed to support legitimate businesses.
Platinum Gates Limited wasset up in October 2018 withOjelabias its sole director.Ojelabisaid thecompanywasane-commerce venture and would buy and sell goods from various warehouse premises.
In May 2020,Ojelabisecured£35,000 in Bounce Back Loan fundsfor the company after declaringits turnover was £150,000.
Within one week,£34,000 of the funds weretransferred to his personal bank account.
Later the same month, £29,800 was moved from his personal account to a share dealing service.
Ojelabimade a secondBounce Back Loanapplicationin June 2020, this time applying for £45,000 and claiming his company's turnover was £180,000.
All the money was transferred toOjelabi'spersonal accountwithin eight days.
In interviews,Ojelabiaccepted he took out the Bounce Back Loans but denied this was done fraudulently.
Platinum Gates Limited entered liquidation in May 2021, with both loans unpaid.
The Insolvency Service is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002.
Further information
*
TemidolaOjelabiis ofGlossop Street, Derby. His date of birthis 1 January 1982
*
Platinum Gates Limited(company number11639086)
*
Read more about the Bounce Back Loan Scheme and the action the Insolvency Service can take if it finds misconduct
*
Further information about the work of the Insolvency Service, and how to complain about financial misconduct
Disclaimer: Curated by HT Syndication.
