A Bounce Back Loan fraud Derby prosecution has resulted in a prison sentence after a local businessman illegally obtained and misused £80,000 in COVID-19 business support funding.
Temidola Ojelabi, 43, of Glossop Street, Derby, submitted two separate Bounce Back Loan applications in 2020 on behalf of Platinum Gates Limited — despite the scheme permitting only one loan per business, capped at 25% of annual turnover.
In May 2020, he secured £35,000 after declaring turnover of £150,000. Within one week:
- £34,000 was transferred to his personal account
- £29,800 was moved to an online share-dealing platform
The following month, he applied again — this time claiming turnover of £180,000 — and obtained a further £45,000. These funds were also transferred to his personal account within days.
The loans were not used to support business operations, contrary to the Bounce Back Loan Scheme conditions.
Platinum Gates Limited entered liquidation in May 2021 with both loans unpaid.
At Derby Crown Court on 10 December, Ojelabi was sentenced to two years and four months’ imprisonment and disqualified from acting as a director for eight years. Recovery proceedings are being pursued under the Proceeds of Crime Act 2002.
Authoritative Source:
Insolvency Service press release
https://www.gov.uk/government/news/derby-fraudster-jailed-after-using-covid-loan-funds-on-share-dealing-platforms
Derby Bounce Back Loan Fraud – How the Scheme Was Abused
This Derby Bounce Back Loan fraud case demonstrates how weaknesses in scheme controls were exploited.
The Bounce Back Loan Scheme was introduced to deliver emergency liquidity quickly during the pandemic. However, it relied heavily on self-declared turnover figures, with minimal upfront verification.
The absence of a centralised loan registration mechanism meant:
- Multiple applications could be made to different lenders
- No automatic cross-checking prevented duplication
- Basic safeguards were not consistently applied
Further details of the scheme remain available via GOV.UK:
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
Bounce Back Loan Fraud Derby – Enforcement Is Accelerating
The Insolvency Service continues to investigate Bounce Back Loan fraud cases nationwide, including this Bounce Back Loan fraud Derby prosecution.
Director disqualification orders, criminal sentences, and recovery proceedings under the Proceeds of Crime Act are becoming increasingly common where abuse is identified.
This reflects a shift from rapid emergency deployment in 2020 to structured enforcement and recovery in 2025 and beyond.
Structural Weaknesses in the COVID Business Loan Scheme
This Bounce Back Loan fraud Derby case highlights broader structural concerns within the design of pandemic rescue schemes.
Bounce Back Loans were issued based on declared turnover without mandatory supporting documentation. A simple requirement for three months’ bank statements would have provided a basic indicator of trading activity.
Equally significant was the absence of a central loan register — a vulnerability that was foreseeable and, in practical terms, avoidable.
Whilst speed was clearly prioritised at the time, limited verification checks may have prevented substantial abuse without materially delaying support to legitimate businesses.
Further enforcement analysis will follow as additional prosecutions progress.
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