Adebanjo Adebayo Talabi, from Walworth, was the director of Bebo Construction Limited.

An Insolvency Service investigation found the 42-year-old applied for three loans, between August and November 2020, from three separate banks.

On each occasion, the company’s turnover had been exaggerated significantly to claim the maximum amount available (£50,000), with evidence that the money was transferred to a personal account.

The company would have been entitled to one loan of approximately £1,300.

Talabi pleaded guilty to three counts of fraud by false representation and was sentenced at Southwark Crown Court.

He received a two-year sentence, suspended for two years on condition of completing 200 hours unpaid work, and disqualified from being a director for six years.

During sentencing, it was noted that Mr Talabi has begun to repay the money owed and, as such, the Insolvency Service will not be pursuing action under the Proceeds of Crime Act.

Insolvency Service Chief Investigator David Snasdell said: “This is significant sentence which imposes a number of long-term restrictions on Adebanjo Adebayo Talabi, while taking into account his guilty plea and efforts to pay back the money his company owes.

“The Insolvency Service will continue to pursue those who exploited the Covid Bounce Back Loan scheme, aimed at supporting struggling businesses through the pandemic.”

Adebanjo Adebayo Talabi successfully applied for three Bounce Back Loans for Bebo Construction Limited – each worth £50,000 – on 1 August, 20 August and 5 November 2020.

On each occasion he stated that the company’s turnover was between £200,000 and £220,000 – which was found to be significantly inflated.

For the second and third loan, Talabi falsely stated that they were the first and only loan applications for the company.

Additionally, evidence from the Insolvency Service investigation found the loans had been transferred to personal accounts and not used for the economic benefit of the company, which was a requirement of the scheme.