Amraiz Mahmood misused Covid relief funds for personal expenses, including drugs and gambling, leading to a suspended sentence.
He spent most of the loan money on drugs and gambling. In May 2021, Mahmood claimed bankruptcy, stating he owned £100 and owed over £200,000. Just before that, he got another loan.
He secured a £25,000 loan not related to Covid. He took £2,000 out from the £25,000 and then withdrew a further £37,950, claiming he needed to fix his home, knowing assets would freeze after bankruptcy.
Home repair invoices came after bankruptcy, meaning he had the cash when saying he only had £100. Mahmood got convicted of fraud and hid assets before claiming bankruptcy.
A court sentenced him on February 21, handing down a 10-month sentence suspended for two years. He has a curfew from 9 pm to 7:45 am, electronically monitored for twelve months.
The Insolvency Service investigated Mahmood, asserting he took money he didn’t deserve. The loans were for businesses during the pandemic, but he used the money for himself.
The Insolvency Service takes action against abuse, as Mahmood hid assets when declared bankrupt. Now, he cannot borrow over £500 and must disclose his bankruptcy for eight years.
They now try to recover the funds from Mahmood.