A builder has been fined and given a suspended prison sentence after fraudulently claiming a £50,000 Covid loan which he later lost in a crypto scam.
Lukasz Nowak, a self-employed builder from Hounslow, west London, claimed the maximum amount available to the government under the Bounce Back loan scheme in October 2020, according to the Insolvency Service.
The government agency said that to claim the loan, he indicated on the application form that his business had a turnover of £205,000 in the previous year. His income during this period was in fact around £20,000.
The recovery loan scheme stipulated that the loan was to be used to provide financial support to the business on whose behalf the claim was made.
Instead, Nowak invested the full amount of the loan in cryptocurrency through an online broker, who stole the money, according to a statement from the Insolvency Service.
The builder filed for bankruptcy in July 2021, he said.
Nowak admitted his wrongdoings in November 2022 while under investigation by the Insolvency Service.
He pleaded guilty to fraud by false representation under the Fraud Act 2006 at a first hearing at Boston Magistrates’ Court on October 9 this year.
Julie Barnes, chief investigator at the Insolvency Service, said: “Lukasz Nowak took advantage of a scheme designed to help those in need with no thought for anyone else.
“Nowak’s reckless actions, driven by the intent to achieve personal gain, resulted in loss to the public purse.
“His ruling shows that the Insolvency Service will not tolerate the abuse of taxpayers’ money.”
As well as the 20-month prison sentence, suspended for two years, announced at Lincoln Crown Court on November 27, Nowak was ordered to pay £12,000 in compensation to the bank that granted him the loan.
As part of his sentence, Nowak will also have to complete 200 hours of unpaid work and 15 days of rehabilitation activity.
