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Gary Wright was the owner of the Talbot Ale House in St Helens before it ceased trading in 2019, prior to the pandemic
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Wright was subsequently declared bankrupt in early 2020
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This did not stop him applying for a £25,000 Bounce Back Loan on behalf of the pub, failing to tell the bank he was bankrupt in the process
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The loan was repaid in full earlier this year
A former St Helens pub owner who failed to disclose his bankruptcy when he applied for Covid support funds has been handed a suspended sentence.
Gary Wright did not inform the bank that he was bankrupt when he obtained a £25,000 Bounce Back Loan in the summer of 2020.
The 46-year-old made the application on behalf of the Talbot Ale House on Duke Street in St Helens town centre, the pub he ran before his bankruptcy earlier that year.
Wright, of Bleak Hill Road, St Helens, was sentenced to two years in prison, suspended for two years, at Liverpool Crown Court on Thursday 24 April.
He was also ordered to complete 150 hours of unpaid work and pay £1,500 in costs.
The Bounce Back Loan was repaid in full shortly before Wright was sentenced.
David Snasdell, Chief Investigator at the Insolvency Service, said:
Gary Wright incurred significant debts after his business failed and he was ultimately declared bankrupt.
He then attempted to take advantage of a scheme which was backed by taxpayers and designed to support viable small businesses through the pandemic.
Bankrupts are legally required to declare their status when applying for loans or credit. Wright clearly failed to do this which is why he now has a criminal conviction.
Talbot Ale House ceased trading in September 2019 and Wright was declared bankrupt in February 2020 due to debts owed to a major utility company.
Despite this, Wright applied for a £25,000 Bounce Back Loan in June 2020, claiming the turnover of the pub was £400,000.
Wright remains an undischarged bankrupt, meaning he has not been officially released from his bankruptcy.
Individuals subject to a bankruptcy order must disclose their status if they borrow or obtain credit of £500 or more.
A pub continues to run from the same address but under different management.
