Company Director Sentenced for Fraud After Claiming £50,000 Covid Loan and Dissolving Firm

A director of a company based in Hertfordshire has been handed a suspended prison sentence after obtaining a £50,000 Covid loan and subsequently dissolving her business. Irena Tokarczyk, aged 66, residing at Ashburnham Drive, Watford, sought the maximum Bounce Back Loan amount in June 2020, acting as the sole director for Good Food Shops Ltd. One week subsequent to this application, she requested a voluntary strike-off for the company. Investigations conducted by the Insolvency Service revealed no indication that the business, which was formally dissolved in October 2020, had ever engaged in trading activities. On 5 November, Tokarczyk received her sentence at Isleworth Crown Court, having pleaded guilty to charges of fraud and neglecting her responsibilities as a director. For failing to perform the duties of a director, she received an 18-month custodial sentence, which was suspended for 12 months. Additionally, a two-year custodial sentence, also suspended for 12 months, was imposed for the fraud offense. These sentences are to be served concurrently and incorporate a requirement for 100 hours of unpaid community work along with 10 days of rehabilitation activities. Furthermore, Tokarczyk has been barred from acting as a company director for a period of three years. According to the Insolvency Service, she is scheduled to face a confiscation order in January aimed at recovering the misappropriated funds. Chief investigator Mark Stephens remarked: “Irena Tokarczyk exploited the Bounce Back Loan scheme at a time when businesses in the UK were facing some of their toughest times.” He further stated: “We will continue to seek recovery of the money to return it to the public purse.” For updates on news from Beds, Herts, and Bucks, information is available on BBC Sounds, Facebook, Instagram, and X. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the material found on external websites. Details regarding our policy on external linking are available for review.