A Bradford second-hand car dealer has been ordered to repay £66,917 following a Bradford Bounce Back Loan fraud involving a £50,000 Covid loan.
Javed Akhtar, 49, appeared at Bradford Crown Court on 6 August 2026, where the confiscation order was made following an investigation by the Insolvency Service.
Akhtar had previously admitted fraudulently applying for the £50,000 Bounce Back Loan on behalf of Natasha Motors Ltd in May 2020.
The £50,000 represented the maximum amount available under the scheme.
As part of the application, Akhtar declared that Natasha Motors Ltd had a turnover of £400,000. The Insolvency Service established that the figure was false.
When later interviewed under caution, Akhtar himself gave different figures for the company’s 2019 turnover, stating at one point that it had been £200,000 and at another £300,000.
He said the application had been completed by the company’s accountant on his instructions.
Natasha Motors Ltd subsequently entered liquidation in April 2021. Akhtar failed to provide adequate accounting records to the liquidator.
He also claimed that 99% of the Bounce Back Loan funds had been used to buy second-hand vehicles which were then sold to a contact in Ireland.
Assets Worth More Than £150,000 Identified
A subsequent financial investigation by the Insolvency Service identified assets including three vehicles and an investment in solar panels, with a combined value of more than £150,000.
The court ordered Akhtar to repay £66,917, representing the £50,000 fraudulently obtained together with an uplift to reflect the change in the value of money since 2020.
He has three months to pay.
Failure to comply with the confiscation order could result in a six-month prison sentence, although the money would still remain payable.
Akhtar had previously been sentenced in March 2026 to 20 months’ imprisonment, suspended for two years, and ordered to complete 250 hours of unpaid work.
He was also disqualified from acting as a company director in August 2023 after failing to provide adequate company accounting records.
His six-year director disqualification runs until August 2029.
NPD Comment
This matter yet again demonstrates the importance of due diligence.
The £400,000 turnover figure used in the Bounce Back Loan application was self-declared and was subsequently found to be false.
Even relatively simple, low-cost independent checks can help test information being supplied before money or credit is advanced. Due diligence does not have to be complicated or expensive, but relying purely on information supplied by an applicant can create an obvious risk.
The Credit Control Room Portal provides businesses with pay-as-you-go access to company credit reports and the NPD Credit Information Database, allowing basic due diligence checks to be carried out quickly and at low cost.
Q: How Was This Allowed to Happen?
A: The Government wanted to get financial support to businesses as quickly as possible during the Covid pandemic.
The Bounce Back Loan Scheme was therefore designed to be fast and simple, with applicants self-declaring information including their turnover rather than having to provide the level of supporting evidence normally associated with commercial lending.
That speed helped many genuine businesses access urgently needed funds, but it also created an opportunity for false information to be supplied and loans to be obtained fraudulently.
Q: How Was the £66,917 Awarded?
A: The Government is now actively pursuing the recovery of money obtained fraudulently through Covid support schemes.
In this case, the Insolvency Service used the Proceeds of Crime Act 2002 to seek a confiscation order against Akhtar.
The court ordered him to repay £66,917, representing the £50,000 fraudulently obtained together with an uplift to reflect the change in the value of money since 2020.
If he fails to pay within three months, he could face six months in prison and would still remain liable for the money.
