Sales Consultant Disqualified for COVID Loan Misuse

Nazia Khan, a 50-year-old sales consultant with claimed decades of experience, has recently received a nine-year directorship ban for fraudulently obtaining COVID-19 support funding.

Khan, now based in Dubai, secured a £25,000 Bounce Back Loan in July 2020 for her company LC247 Limited by falsely declaring a £100,000 turnover. The company, purportedly offering consultancy services across luxury vehicles, retail, fashion, consumer electronics, and health and beauty sectors, was actually dormant according to Companies House records.

Investigation revealed Khan misappropriated £23,407 through payments and £3,232 in cash withdrawals for personal expenses, including accommodation and retail purchases at Primark and Zara. LC247 Limited entered liquidation in February 2022 with £28,000 in outstanding debts.

Kevin Read, Chief Investigator at the Insolvency Service, stated:

“Nazia Khan falsely claimed her company had a turnover of £100,000 when in reality it was not trading. The misleading information she provided on her application for a Bounce Back Loan meant she received £25,000 in taxpayers’ money she was not entitled to. 

Khan also broke the rules of the scheme by not using all the money to support her business. 

Tackling Bounce Back Loan misconduct remains a top priority for the Insolvency Service and we will not hesitate to take action when we identify such blatant abuse of the scheme.”

Following Khan’s acceptance of the disqualification undertaken by the Business and Trade Secretary, the ban took effect December 5. This bars her from any involvement in company formation, promotion or management through 2033 unless granted court permission.