Bankrupt former London private hire vehicle driver who claimed £50,000 Bounce Back Loan hit with 11 years of sanctions
A former private hire driver from North London has been handed 11 years of strict financial restrictions after abusing the Government’s Bounce Back Loan Scheme during the Covid-19 pandemic.
Huseyin Houssein, 55, from Edmonton, falsely claimed £50,000 in August 2020 by grossly exaggerating the turnover of his minicab business. In his loan application, Houssein declared a £200,000 annual turnover, allowing him to access the maximum loan amount under the scheme. However, investigations revealed his actual turnover for the financial year ending March 2020 was just £11,446. This meant he was only entitled to £2,861.
The Bounce Back Loan Scheme was designed to support businesses during the pandemic, allowing firms to borrow up to 25% of their 2019 turnover, with a cap of £50,000. However, the Official Receiver discovered that Houssein had used none of the funds to support his business, spending the full amount between October 2020 and May 2021 for other purposes.
Houssein was declared bankrupt in February 2024, prompting an investigation into his financial conduct. He later admitted to providing false information in his loan application and failing to use the money in line with the scheme’s requirements.
In light of his actions, Houssein signed a Bankruptcy Restrictions Undertaking, extending the usual 12-month bankruptcy term to 11 years. The restrictions, accepted by the Secretary of State for Business and Trade on 7 January 2025, will remain in place until 6 January 2036.
During this period, Houssein is barred from acting as a company director without court approval and must declare his bankruptcy restrictions when borrowing more than £500. He is also prohibited from holding certain public positions.
Victoria Prime, Official Receiver at the Insolvency Service, said: “Huseyin Houssein used false information to claim money that was designed to support businesses through the pandemic.
“He took more than £47,000 of taxpayers’ money that he was not entitled to.
“The Insolvency Service takes the abuse of public money seriously and I’m pleased that these lengthy restrictions will help to protect the public from further financial harm.”
