Bounce Back Build Loan Cheat Banged Up

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A man who claimed two Bounce Back Loans for his construction businesses but spent the money on himself, associates and other third parties was jailed last week.

Arti Deda had overstated the turnover of his Knight Workers Limited in 2020 to obtain the loans when the companies were only entitled to one. Not a single penny of the total of £100,000 that was claimed went to the economic benefit of the businesses as was the requirement of the scheme.

Deda, of Littleport Spur, Slough, was sentenced to two-and-a-half years in prison at Reading Crown Court on Wednesday 5 February and banned as a company director for 10 years.

 

The Insolvency Service

David Snasdell, the chief investigator at the Insolvency Service, says: “This significant jail term and director disqualification reflects the seriousness of Covid-related fraud.

“Bounce Back Loans were designed to support small and medium-sized businesses through the pandemic. Taxpayers’ money should not have been used for personal purposes by company directors. 

“The Insolvency Service is committed to investigating these crimes, which have a substantial impact on the public purse and prosecuting those responsible.”

 

Knight Workers

Knight Workers was incorporated in December 2017 with Deda as its sole director. The company claimed to be in the business of construction of domestic buildings.

However, Insolvency Service investigators found minimal evidence of any trading in the construction industry. 

Deda made the fraudulent applications to two separate banks for Bounce Back Loans for the company during the same week in July 2020, falsely declaring its annual turnover was both £390,000 and £495,000 for 2019. 

He also claimed in securing the second Bounce Back Loan that this was his only application. 

A total of £44,500 was transferred to an associate just days after Deda received the funds. A further £13,000 was later transferred to a third party and £20,000 was transferred from the account with the reference ‘material’. 

 

Liquidation

Deda applied to have Knight Workers liquidated in November 2021 in an attempt to avoid having to repay the loan.  

The company was eventually dissolved in April 2023, with Deda having made no repayments. 

Deda also failed in his duties as a company director to provide accounting records to the liquidator on request.

The Insolvency Service is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002. 

 

Picture: The scales of justice have weighed out a jail sentice for a Covid loan fraudster.

Article written by Cathryn Ellis
12th February 2025

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