Eleven years of bankruptcy restrictions for former electrician
An ex-electrician faces over a decade of constraints after a significant misuse of a pandemic aid scheme meant to assist businesses through tough times. Andrei Adrian Moise, a 35-year-old from Mitcham, Surrey, secured a Bounce Back Loan of £45,000 in July 2020. This loan was part of a governmental effort to support self-employed individuals and their businesses during the economic challenges presented by the COVID-19 pandemic. Eligibility for such financial support required individuals to have been operating as a sole trader as of 1st March 2020. However, it was revealed during his bankruptcy proceedings in May 2023, that Moise had not been self-employed since 2016, calling into question the legitimacy of his claim.
The purpose of the Bounce Back Loan was clear: to provide economic relief to businesses affected by the pandemic. Nevertheless, it was discovered that Moise allocated these funds towards non-business-related expenses, including payments to third parties, rather than using them to bolster an active business. Mitzi Mace, an Official Receiver at the Insolvency Service, highlighted the abuse of the scheme by Moise, emphasising the importance of safeguarding public funds and ensuring that assistance reaches those genuinely in need during unprecedented times.
To prevent similar abuses in the future, Moise will face bankruptcy restrictions for an extended period of 11 years. These restrictions are severe and include prohibitions on serving as a company director without court permission, borrowing over £500 without disclosing his bankruptcy restrictions, and holding various significant roles such as a charity trustee, school governor, or certain positions within the public sector.
Typically, bankruptcy restrictions have a lifespan of 12 months, mirroring the duration of standard bankruptcy. However, in instances where dishonesty or abuse is detected, the Official Receiver has the authority to seek an extension of these restrictions for up to 15 years through a Bankruptcy Restrictions Order (BRO) or a Bankruptcy Restrictions Undertaking (BRU), with the latter avoiding court proceedings. Moise opted for a Bankruptcy Restrictions Undertaking, accepted by the Secretary of State for Business and Trade on 21st May 2024, solidifying these restrictions for the 11-year term.
This case serves as a cautionary tale and demonstrates the rigorous actions taken to preserve the integrity of financial support systems, ensuring they serve their intended purpose of aiding those genuinely affected by the pandemic’s economic impact.
The original article from the Insolvency Service on this case can be seen here.