- Azizullrahman Akbari overstated his company’s turnover when he applied for a £50,000 Bounce Back Loan – the maximum amount businesses could receive under the scheme
- His New Watan Bakery Limited company did not have a turnover of more than £200,000 as he falsely claimed
- Akbari has been banned as a company director until January 2035 following investigations by the Insolvency Service
The former boss of a west London bakery who overstated his company’s turnover to secure a maximum-value Covid loan has been banned from acting as a director for 10 years.
Azizullrahman Akbari, 60, obtained a £50,000 Bounce Back Loan just weeks into the pandemic, claiming the turnover for his New Watan Bakery Limited company was more than £200,000.
In reality, the company, which ran the Watan Bakery on South Road in Southall, never had such a high turnover.
Elizabeth Pigney, Chief Investigator at the Insolvency Service, said:
Azizullrahman Akbari exaggerated his company’s turnover to secure a £50,000 Bounce Back Loan, the most businesses were entitled to under the rules of the scheme.
From our analysis of the accounts, the company did not deserve anywhere near this amount.
Tackling Bounce Back Loan misconduct remains a key priority for the Insolvency Service and we will continue to take action against directors like Akbari who made false declarations when applying for financial support from the government.
New Watan Bakery began trading in June 2016, with Akbari as its sole director.
Akbari, of The Broadway, Southall, applied for a Bounce Back Loan in May 2020, declaring his company had a turnover of £214,010.
Businesses established before the start of January 2019 could apply for a Bounce Back Loan of up to a quarter of their annual turnover, with a maximum amount of £50,000.
Insolvency Service analysis of the company’s accounts revealed a turnover of £62,584 for the period up until the end of June 2019.
For the period ending June 2020, the turnover was smaller at £52,370.
New Watan Bakery entered liquidation in July 2023 owing more than £53,000.
The Secretary of State for Business and Trade accepted a disqualification undertaking from Akbari, and his ban started on Wednesday 29 January.
The undertaking prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.
A separate company now runs the bakery. Akbari is not listed as a director of this company.
