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A couple who ran a property company in Cornwall have been banned from being company directors after admitting involvement in the misuse of coronavirus business loans.
David Elderkin, 56, set out to secure a £50,000 Bounceback Loan, the maximum amount a business can receive under the scheme to help businesses recover from the impact of the pandemic. Overstated the annual turnover of Wee River Limited by more than £180,000.
The loan was used to repay money owed to his father and was transferred to his personal account and passed on to an affiliated company.
His wife, Jennifer Elderkin, was also forced out as a director for allowing funds to be used for personal gain.
Husband and wife directors of a Cornish estate agency have been disqualified from being company directors for a combined 12 years after admitting being involved in the misuse of coronavirus bounce back loans.
The couple, from Carnon Downs near Truro, were also directors of Eye for Design, which previously had retail stores called The Clementine in Truro and Fowey, until April 29 this year. The Four Way store is now called LIGA Eco Store and sells eco-living products. According to their own LinkedIn pages, the couple are still both involved in LIGA.
Following action by the Government Insolvency Service, David Elderkin signed a disqualification agreement barring him from serving as a company director for eight years. Jennifer Elderkin signed a four-year contract.
“David Elderkin is responsible for applying for more COVID-19 assistance than his business was eligible for and using the funds for personal gain,” said Kevin Reed, chief investigator at the Insolvency Service. Stated.
“His wife, Jennifer Elderkin, aided and abetted her husband’s illegal activities by ensuring that the funds were not used for the financial benefit of the Fowey River business.
“Tackling abuse of the bounceback loan system is a key priority for the Insolvency Service and the Elderkin family’s conduct represents a serious breach of the standards expected of company directors.”
David Elderkin successfully applied for a £50,000 Bounceback loan in May 2020, claiming Fowey River had an annual turnover of £250,000.
Businesses will be able to apply for a single loan of up to 25% of their turnover from 2019, with the loan cap set at £50,000 under the scheme’s rules.
An investigation by the Insolvency Service revealed that the business had an actual turnover of £68,682. This means the company is entitled to his loan of just over £17,000.
Money loaned to a business can only be used for the economic benefit of the business.
However, the £10,000 was repaid to Elderkin’s father and more than £10,000 was paid to two credit cards in Elderkin’s name.
A further £10,000 was paid to another company where the Elderkins were until recently directors.
Fowey River did not make loan repayments and entered liquidation in April 2021.
The Secretary of State for Commerce accepted the pair’s commitment to disqualify them, and their suspensions began on May 1.
This undertaking prohibits you from being involved in the promotion, establishment, or management of a company without the permission of the court.