Jordan Allen, 39, was sentenced to 16 months in prison, suspended for two years, when he appeared at Preston Crown Court on Monday.

Allen, of Oswaldtwistle, was ordered to complete 200 hours of unpaid work and 10 days of rehabilitation activity. He must also pay £3,600 in compensation.

David Snasdell, Chief Investigator at the Insolvency Service, said: “Jordan Allen made a blatantly false statement by exaggerating the turnover of his business by more than £200,000 and securing a maximum-value Bounce Back Loan in the process.

“From analysing his accounts, the most Allen was entitled to from the scheme was around £5,000, not the £50,000 he fraudulently obtained.

“Allen then made matters worse by spending the money on personal expenses, and not to support his business through the pandemic.

“This was taxpayers’ money and Allen was not entitled to all these funds which is why he now has a criminal conviction for this fraudulent behaviour.”

Allen applied for a £50,000 Bounce Back Loan on behalf of his PlasteRend business in October 2020, stating that his estimated annual turnover was £225,000.

Insolvency Service analysis revealed his turnover for 2018 to 2019 was £20,220 and for 2019 to 2020 was £20,330.

Allen claimed that he was “optimistic” at the time that a business opportunity which failed to materialise would have seen his turnover increase to the level he submitted in his application.

The rules of the Bounce Back Loan Scheme, however, clearly stated that it was an actual, rather than projected turnover, that should be declared on the application form.

Bounce Back Loan funds which were paid into Allen’s business account were transferred to his personal account in January and February 2021.

Almost £17,000 worth of personal spending was identified by the Insolvency Service as soon as the funds arrived in Allen’s personal account.

He made 39 cash withdrawals, each worth £250, in a six-week period between mid-February and early April in 2021.

In addition to the £9,750 he withdrew, Allen also spent more than £7,000 on groceries, gambling, a raffle and fantasy football.

Allen said his personal bank account was used for running both his business and managing his personal accounts.

Allen was declared bankrupt in September 2021 and signed a 10-year Bankruptcy Restrictions Undertaking in July 2022, restricting him from being able to borrow more than £500 without disclosing his bankrupt status.