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Bitcoin

Two years for builder who lost fraudulent Covid loan in crypto scam

By admin
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Two years for builder who lost fraudulent Covid loan in crypto scam

  protos.com 6 h

Two years for builder who lost fraudulent Covid loan in crypto scam

A London builder who fraudulently applied for a £50,000 ($62,000) Covid-19 loan before losing it all in a crypto investment scam has been sentenced to almost two years in prison.

As announced by the UK’s Insolvency Service, 43-year-old Lukasz Nowak successfully applied for a £50,000 ($63,000) Bounce Back loan in October 2020, claiming his business had made £205,000 ($258,000) in the previous tax year. However, Nowak had actually turned over just £20,000 ($25,000).

The Bounce Back scheme allows small and medium-sized businesses to borrow between £2,000 ($2,500) and up to 25% of their turnover.

Rather than spending the loan on financially supporting his business as intended, today’s press release revealed how Nowak chose to invest the funds into crypto via a third-party broker.

However, the broker in question stole his funds, forcing him to declare bankruptcy in July 2021.

TikTok ‘guru’ launders COVID loans with crypto, spoils girlfriend

Nowak confessed to the scheme following an investigation from the Insolvency Service and later pleaded guilty on October 9 to fraud by false representation.

On November 27, Nowak was handed a 20-month prison sentence, suspended for two years, ordered to pay £12,000 to the bank he defrauded, given 200 hours of unpaid work, and ordered to attend 15 rehabilitation sessions.

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