Scaffolding boss forced to repay £115,000 after Covid loan fraud

A Yorkshire scaffolding director, Mark Degnan, has been ordered by Leeds Crown Court to repay £115,000, comprising £100,000 in fraudulently obtained Covid Bounce Back Loans and £15,000 in interest. Should he fail to remit the outstanding £59,578 within six months, he faces a twelve-month custodial sentence. Degnan secured the maximum £100,000 across two loans for MBL Scaffolding Services by artificially inflating his firm’s turnover by over 200 per cent and contravening scheme rules on multiple applications, despite the company filing dormant accounts for 2019. His actual turnover would have rendered him eligible for only £40,000. This follows an earlier two-year suspended prison sentence and a five-year director disqualification for the same offence. The Insolvency Service (IS), now spearheading Covid loan fraud investigations, underscores its commitment to asset recovery. This case highlights the intensified regulatory scrutiny on BBL fraud, particularly within the construction sector, where more than 8,300 loans are under suspicion. It serves as a salient reminder to industry leaders of the sustained, robust enforcement and the significant personal liabilities directors bear for corporate misrepresentation, necessitating stringent financial compliance. Read More