Mohammed Abdul Subhan (47), from West Bromwich, started a self-employment catering business called Thania Spice in 2016 before incorporating Zara Spice Limited, which traded as a restaurant from Bilston Street in Dudley.
In 2020 Mr Subhan focused his attention back on his self-employment business. But by March 2022, Mr Subhan could not pay his debts and applied for his own bankruptcy.
The official receiver was appointed as his trustee before uncovering Mr Subhan had abused £70,000 worth of loans.
Mr Subhan declared that the self-employed business Thania Spice had a turnover of £200,000 and secured the maximum £50,000 Bounce Back Loan. But Mr Subhan’s actual turnover was closer to £3,000–£4,000 in 2019, which would have not made him eligible for the government-backed loan.
The caterer also failed to use all the money for the benefit of the business, contrary to the terms of the Bounce Back scheme, having withdrawn the funds in cash.
Further inquiries by the official receiver found that when the government loan ran out in November 2021, Mr Subhan inflated his income and applied for two further loans worth £20,000 despite being insolvent.
Mr Subhan withdrew more than half the funds in cash and used £13,500 for non-essential expenditure.
Due to the risks he posed to creditors, the official receiver sought to impose additional bankruptcy restrictions against Mr Subhan.
On 27 October, Mr Subhan had his 11-year bankruptcy restrictions undertaking accepted by the Secretary of State. His bankruptcy undertaking means he is limited to what credit he can access as well as not being able to act as a company director without the permission of the court.
Deputy official receiver, Karen Fox, said throughout our inquiries, Mr Subhan failed to provide adequate evidence of what he used the loans on, whether it benefited the business, or that he had any reasonable expectation of repaying the loans back.
He posed a significant risk to creditors and 11 years of restrictions will severely curtail Mr Subhan’s ability to abuse his future lenders.
