Administrators falsely requested £100,000 bounce-back loans

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David Garry Harrison (48) and Paul Hudson (47) have both received 11-year bans after they did not dispute that they had forced their company to ask for £100,000 in bounce-back loans to which it was not entitled.

The couple, both from Cullompton, Devon, are now prohibited from getting directly or indirectly involved in promoting, setting up or running a business, without court permission.

David Harrison’s ban went into effect May 31, while Paul Hudson’s disqualification began June 9.

Ace Buildings and Maintenance Services Limited was incorporated in June 2017 and carried out general construction and maintenance work.

Ace Building and Maintenance Services Limited, however, began to struggle and in October 2019 a liquidation petition was filed against it because it could not pay its debts.

The administrators began talks about insolvency agreements before bringing Ace Buildings and Maintenance Services Limited to first enter into a corporate voluntary agreement in February 2020. A voluntary creditor liquidation in December 2020 followed, the company reporting liabilities of over £340,000.

The building company’s insolvency, however, sparked an Insolvency Service investigation before investigators discovered that David Harrison and Paul Hudson tricked Ace Building and Maintenance Services Limited into submitting two fictitious applications for loans reimbursement to which he was not entitled.

On May 4, 2020, David Harrison and Paul Hudson successfully applied for a £50,000 bounce-back loan, but did not say the company was in trouble and had reached a voluntary deal with almost £110,000 in debt.

The two administrators submitted a second fictitious claim on June 16, 2020. Again, they did not state Ace Building and Maintenance Service Limited’s hardship or that it has already received the maximum amount allowed under the scheme. rebound loan.

Mike Smith, Chief Insolvency Service Investigator, said:

Rebound loans have provided a vital lifeline to help viable businesses during the pandemic. David Harrison and Paul Hudson, however, cynically asked for government assistance to which they were not entitled when they knew full well that their company was insolvent and unable to pay its debts.

11 years is a considerable amount of time to be removed from the corporate arena and their disqualifications will protect the public and creditors, while also serving as a clear warning to other rogue directors that we will vigorously tackle the financial misconduct.

The liquidator of Ace Buildings and Maintenance Services Limited is considering repayment of the loans and recovery of the funds.

Notes to Editors

David Garry Harrison is from Cullompton, Devon and his date of birth is February 1975.

Paul Hudson is from Cullompton, Devon and his date of birth is January 1974.

Forfeiture undertakings are the administrative equivalent of a forfeiture order but do not involve court proceedings. Individuals subject to a disqualification order are bound by a series of restrictions.

More information about the work of the insolvency service and how to file a complaint for financial misconduct.

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