- British Masters athlete Rick Beardsell obtained two maximum-value Bounce Back Loans for his sportswear manufacturing business and used most of the funds to help buy a £1.3 million home in a Cheshire village
- Money spent on purchasing the five-bedroom house should have been used to benefit his Sports Creative Limited business
- Beardsell also broke the rules of the scheme by substantially inflating his company’s turnover and securing two loans when businesses should only have received one
- The 46-year-old has now repaid the £100,000 he fraudulently applied for in full
A world sprint champion has been sentenced after he spent Covid loan funds to help buy a £1.3 million house.
Rick Beardsell secured two £50,000 Bounce Back Loans for his Sports Creative Limited company in 2020 and 2021 when businesses were only allowed a single loan.
The 46-year-old then moved the Bounce Back Loan funds into his personal bank account, using part of the money to help buy a five-bedroom property on Macclesfield Road in Prestbury, while also transferring cash to family members and making mortgage payments.
Beardsell, who has won multiple sprint titles and holds world records representing Great Britain as a masters athlete, was sentenced to 18 months in prison, suspended for two years, when he appeared at Chester Crown Court on Tuesday 22 July.
He was also ordered to complete 250 hours of unpaid work and pay costs of £11,152.
Beardsell repaid the £100,000 in full earlier this year after his guilty plea but before sentencing.
David Snasdell, Chief Investigator at the Insolvency Service, said
Rick Beardsell exploited a Covid support scheme designed for struggling businesses, fraudulently obtaining loans he was not entitled to.
While legitimate business owners fought to stay afloat during the pandemic, Beardsell bought a £1.3 million home with the help of money that should have been supporting his company through difficult times.
This case sends a clear message that we will not tolerate those who viewed government support schemes as an opportunity for personal enrichment during a national emergency.
Sports Creative Limited was set up in January 2009 with Beardsell as its sole director. The company described itself on social media as “a bespoke sportswear manufacturer”.
Beardsell applied to the bank for his first £50,000 Bounce Back Loan just before Christmas 2020.
In the application, he claimed that Sports Creative Limited had a turnover of £485,000.
Just two weeks later, in early January 2021, Beardsell applied to a second bank for another £50,000 Bounce Back Loan, this time stating that his company had an estimated turnover of £320,000.
Insolvency Service analysis of Sports Creative Limited’s bank account revealed that its turnover was just over £90,000, meaning he exaggerated his company’s revenue on both occasions.
Beardsell claimed that he had received a purchase order of $600,000 (approximately £440,000) for personal protective equipment during the pandemic which ultimately failed to materialise.
Even if this were the case, businesses were required to provide their turnover for 2019, prior to the start of Covid.
Investigations also found Beardsell transferred £83,900 of the £100,000 loan money to his personal bank account in three separate transactions at the start of March 2021.
A total of £431,160 from that account was paid to solicitors for the purchase of a house on Macclesfield Road in September 2021.
Beardsell also made fraudulent transfers of £5,000 to his wife, £10,000 to another family member, and two mortgage payments for his previous house in Manchester which put the funds beyond the reach of creditors.
In a prepared statement, Beardsell claimed that he had sought “professional advice” that Bounce Back Loan funds could be used for “any purpose” that resulted in a direct benefit to the company. He added that he was advised that this could include investments in company assets or property.
Beardsell also said that HMRC told him that he was eligible to receive the funds from the second loan, advice which would not have been given had he been honest about his successful application for an earlier Bounce Back Loan.
Sports Creative Limited entered liquidation in December 2021.
