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Derby-based Temidola Ojelabi illegally obtained £80,000 in Covid support by making two separate Bounce Back Loan applications
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Funds were spent on share dealing platforms instead of supporting his business through the pandemic
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The 43-year-old has been jailed and banned as a company director following investigations by the Insolvency Service
A Derby businessman who used Covid support scheme funds on online trading platforms has been jailed.
Temidola Ojelabi secured £80,000 across two Bounce Back Loan applications for Platinum Gates Limited in 2020 when businesses were only entitled to a single loan.
Money from the loans was then used on online trading platforms when it should have been spent supporting his business.
Ojelabi, 43, of Glossop Street, Derby, was sentenced to two years and four months in prison at Derby Crown Court on Wednesday 10 December.
He was also disqualified as a company director for eight years.
David Snasdell, Chief Investigator at the Insolvency Service, said
Temidola Ojelabi exploited a scheme designed to support small and medium-sized businesses through the pandemic, securing two Bounce Back Loans when you were only allowed one.
Two different turnover figures were given on each application, and the funds were not used for the economic benefit of his business – a fundamental requirement of the scheme. Instead, money was spent on online trading platforms.
Ojelabi’s actions showed a complete disregard for taxpayer money and the rules designed to support legitimate businesses.
Platinum Gates Limited was set up in October 2018 with Ojelabi as its sole director. Ojelabi said the company was an e-commerce venture and would buy and sell goods from various warehouse premises.
In May 2020, Ojelabi secured £35,000 in Bounce Back Loan funds for the company after declaring its turnover was £150,000.
Within one week, £34,000 of the funds were transferred to his personal bank account.
Later the same month, £29,800 was moved from his personal account to a share dealing service.
Ojelabi made a second Bounce Back Loan application in June 2020, this time applying for £45,000 and claiming his company’s turnover was £180,000.
All the money was transferred to Ojelabi’s personal account within eight days.
In interviews, Ojelabi accepted he took out the Bounce Back Loans but denied this was done fraudulently.
Platinum Gates Limited entered liquidation in May 2021, with both loans unpaid.
The Insolvency Service is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002.