Company director who invested Bounce Back Loan in stock market banned for seven years
The director of a fruit and vegetable retailer, who improperly invested more than half of a Covid Bounce Back loan on the stock market instead of using it for his business, has been disqualified and ordered to repay the money.
Emra Kayam, 35, received a seven-year directorship disqualification order at the High Court in London on Tuesday, April 30.
Kayam, of Kings Road, London, was also ordered to pay £37,460 in compensation within two weeks.
Peter Smith, Chief Investigator at the Insolvency Service, stated:
“Emra Kayam rashly invested taxpayers’ money on the stock market, only withdrawing the funds after losing more than £2,000 within days. His exploitation of the Bounce Back Loan Scheme will not be tolerated, which is why he has been banned as a director until 2031 and ordered to repay the money he secured from the public purse. This disqualification also sends a message to directors that they cannot dissolve their companies to evade sanctions.”
Kayam received the £35,000 Bounce Back Loan in June 2020 for his company, Kayalar Limited. Under the scheme’s rules, the loan was to be used solely for the economic benefit of the business and not for personal use.
However, within days, Kayam transferred £15,920 to his personal account, claiming it was to repay loans from friends. He also transferred £19,000 to online trading platforms during June and July 2020. After losing more than £2,000 on these platforms, Kayam withdrew the remaining funds and transferred £16,600 to his personal account.
Kayalar Limited was dissolved in November 2020 with the £35,000 loan unpaid. Kayam’s compensation order includes the £35,000 he secured plus interest as per the loan agreement.
The disqualification order prevents him from being involved in the promotion, formation, or management of a company without court permission.
This article originally appeared on The Insolvency Service website here