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• Imran Mushtaq exaggerated the turnover of his IZ Business Consultants Limited company to obtain two 拢50,000 Bounce Back Loans听听

• Mushtaq made the fraudulent applications within a two-day period in early June 2020听

• The 40-year-old has been given a suspended sentence and has pledged to pay the 拢100,000 back in instalments听

A Derby-based business consultant who fraudulently obtained two Covid loans worth a combined 拢100,000 has been handed a suspended sentence.听

Imran Mushtaq was the sole director of IZ Business Consultants Limited when he applied for two Bounce Back Loans for the company in June 2020.听

Mushtaq was sentenced to 20 months in prison, suspended for 22 months, when he appeared at Derby Crown Court on Tuesday 13 August.听

The 40-year-old was also ordered to complete 120 hours of unpaid work and pay costs of 拢1,000.听

Mushtaq, of Mimosa Crescent, Derby, has committed to repay the 拢100,000 he fraudulently secured.听

Claire Entwistle, Assistant Director of Operations at the Insolvency Service, said:听

Imran Mushtaq deliberately overstated the turnover of IZ Business Consultants to secure two Bounce Back Loans when businesses were only entitled to a single loan.听

This was government-backed taxpayers鈥� money and Mushtaq made matters worse by refusing to co-operate with Insolvency Service investigations into his conduct.听

While we are pleased that Mushtaq has said he will repay the loans in full, this commitment was only made by him when faced with the prospect of a custodial sentence for his offences.

IZ Business Consultants was established in August 2013, describing its services on Companies House as offering retail sale of telecommunications equipment other than mobile telephones and other business support service activities.听

Mushtaq applied for two Bounce Back Loans worth 拢50,000 each within a two-day period in June 2020, claiming his company鈥檚 turnover was 拢260,000 and 拢206,000.听

The firm鈥檚 turnover for 2019 was closer to 拢83,000 in 2019, analysis of the company鈥檚 accounts revealed.听

Mushtaq signed a declaration on applying for the loan stating that the funds would be used solely for the economic benefit of his business and not for personal use.听

However, on receiving the loans, he paid more than 拢78,000 to a money transfer service based in California.听

Mushtaq arranged an interview with investigators from the Insolvency Service but failed to attend.听

No evidence was provided that any of the money was used for the benefit of his business.听

Liquidators were appointed for IZ Business Consultants in October 2021.听

Further information听

• Imran Mushtaq is of Mimosa Crescent, Derby. His date of birth is 20 November 1983听

• Sentenced for: Fraud by false representation, contrary to section 2 of the Fraud Act 2006听

• Read more about the Bounce Back Loan Scheme and the action the Insolvency Service can take if it finds misconduct听

• Further information about the work of the Insolvency Service, and how to complain about financial misconduct.