A man who applied for COVID Bounce Back Loans using fake business names and fake account details has been sentenced to 19 months in prison at Bristol Crown Court. At the sentencing on Wednesday, September 25, it was revealed that the false loan applications totalled £96,500.
The evidence was uncovered when Atila Kovacs, 45, of Gloucester Road, was being investigated for the illegal importation and sale of dogs last year, which Kovacs was handed a suspended sentence for. During this investigation by Bristol Trading Standards, Kovacs’ false loan applications were revealed.
In May and June 2020, Kovacs applied for the COVID Bounce Back Loans with false business names and account details. He used the identity of a former acquaintance to apply for the loan and spent the money on personal items such as clothes, furniture, and cash withdrawals.
The government backed loans were intended to provide support to small and medium sized businesses who were affected by the pandemic. Rules of the loan scheme made it clear to applicants that they must confirm they were running a business. Kovacs pled guilty to two offences under the Fraud Act 2006.
Councillor Andrew Brown, Chair of the Economy and Skills committee said: “Bristol City Council takes fraudulent activity very seriously and we will continue to take action when presented with evidence which shows fraud has taken place. These actions are a blatant abuse of the system which was designed to support businesses and communities during the COVID-19 pandemic.”