Building boss banned for covid loan abuse

Grant Prior 3 weeks ago
Share

A London-based builder has been disqualified as a company director for ten years after he overstated his company’s turnover to claim the maximum Bounce Back Loan during the pandemic and then failed to show the money had been spent on his business.

Marcel Ion, 39, from Bromley, was the sole director of Mavion Group Ltd, a construction business which was registered in Dagenham.

In June 2020, Ion applied for a £50,000 Bounce Back Loan on his company’s behalf, stating that the business had a turnover of £205,410.

But Mavion Group Ltd went into liquidation in August 2022, owing more than £180,000 – including the full amount of the loan – and triggering an investigation by the Insolvency Service.

Lawrence Zussman, Deputy Head of Company Investigations at the Insolvency Service, said: “Marcel Ion blatantly took advantage of a government scheme to support businesses when they were facing huge challenges posed by the pandemic.

“His lengthy ban shows the Insolvency Service will pursue those who seek to abuse taxpayers’ money and remove them from the business arena.”

Investigators found that the company had made sales of around £82,900 between January and December 2019, according to the business’s bank account, proving that Ion had exaggerated the company’s turnover on the loan application by more than double the actual amount.

They also discovered that five days after the £50,000 loan entered the company’s bank account in July 2020, Ion began to move money into his personal bank account. More than £35,360 was transferred to his personal account by the end of April 2021.

Investigators found no evidence that these payments were for the economic benefit of the company.

Under the rules of the scheme, companies could apply for a loan of between £2,000 and a maximum of £50,000. For companies whose business had started trading before 2019, the amount of loan they were eligible for was based on their turnover for the 2019 calendar year.

Any money loaned under the scheme had to be used for the economic benefit of the company.

The Secretary of State for Business and Trade accepted a 10-year disqualification undertaking from Ion, which began on 1 May 2024. It prevents him from becoming involved in the promotion, formation or management of a company, without the permission of the court.

Latest news

Morgan Sindall bags £60m raft of NHS projects

Mid and South Essex NHS Trust plans six projects
14 hours ago

Peri buys shoring and temporary bridge specialist Mabey Hire

Scaffolding and formwork specialist expands offer
18 hours ago

Vinci/McAlpine go-ahead for £312m Midlands hospitals revamp

Shrewsbury and Telford Hospital NHS Trust gets full business case approval
21 hours ago

Lendlease puts construction arm up for sale

After two decades of global expansion Lendlease retreats to Australia
2 days ago

Mount Anvil seals Isle of Dogs estate rebuild

Firm will build 300 new homes at East London's Tiller Road Estate
21 hours ago

Northumbria Uni invites bids for £75m CHASE project

12-storey student block to be demolished for new Centre for Health and Social Equity
20 hours ago

Civils firm Akela appoints former Robertson director as MD

Framework expert Robert Ogg to lead growth at Scottish contractor
21 hours ago

McLaren to build new Hertfordshire primary school

Contractor to prioritise local suppliers on High Leigh Garden Village site
20 hours ago

Developer picked for Stafford town centre regeneration

ION Developments will draw up detailed plans for mixed-use Eastgate scheme
21 hours ago

Former Crossrail boss Mark Wild to lead HS2

Wild to bear down on spiralling costs and bring rejigged scheme in on time
2 days ago

Receivers in at £125m Manchester tower developer

Domis Construction walked away from scheme following doubts over funding
3 days ago

Costain A1 £260m dualling job finally gets go-ahead

Ministers sat on planning inspectors report for nearly three years
2 days ago

Election delays decision on Lower Thames Crossing

Planning decision on £1.2bn Luton airport expansion also pushed back six months
2 days ago

Caddick steps-in at former Lane End housing job

Contractor to restart phase of £262m scheme hit by administration
2 days ago

Plans in for Leeds iconic Tetley building revamp

Former brewing giant's HQ to become indoor market and offices
2 days ago

BAM wins first phase of North Devon hospital revamp

New staff accommodation to kick-off hospital redevelopment
2 days ago

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
7 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
6 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
6 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
6 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
6 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
7 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
7 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
7 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
7 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
7 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
7 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
1 week ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
1 week ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
1 week ago

Contractor services