A COMPUTER expert has become the latest Bolton businessman to be rapped for wrongly claiming a government bounce back loan.

An investigation by the Insolvency Service found that IT consultant Adnan Riaz had used the majority of his £50,000 assistance grant to pay off personal credit card debts.

Mr Riaz, 42, of Woodland Avenue, Farnworth, was a director of ASM Public Ltd at the time.

An Insolvency Service spokesman said Mr Riaz applied for a £50,000 bounce back loan on behalf of ASM in May, 2020.

He “ought to have known that ASM was not eligible for at least £19,219 of the loan and used at least £30,363 of the funds to repay personal debt and not for the economic benefit of the business”.

The loans were unveiled by the government during the pandemic to assist them through the uncertain economic conditions caused by the Covid-19 outbreak.

Loans ranged from £2,000 to £50,000 and were available based on 25 per cent of a company’s turnover for 2019.

Insolvency officials say in the case of Mr Riaz and ASM, it was falsely claimed the firm’s turnover was £210,000.

But in fact the true figure was £123,123, which would have meant the maximum amount for the loan could only have been £30,781.

Later the company received £50,000 into its bank account, according to insolvency bosses, and between May 22 and 24 that year three transactions were made from the same funds, totalling £30,363, to two of Mr Riaz’ personal credit card accounts.

The firm was liquidated in May, 2021 and ASM had total liabilities of £67,177, which consisted of the £50,000 loan payment, owed to HM Revenue and Customs and corporation tax of £11,501, with £5,676 due to employees.

Mr Riaz is now the subject of a six-year company director disqualification, insolvency officials say.

The last businessman to fall foul of the bounce back loan scheme payment was restaurateur Robert John Lee, 32, who ran Blackrod Dining.

He claimed a loan even though his firm had no fixed premises – and had liabilities of £96,000 when it was wound up. Lee, of St John’s Road, Lostock, received a seven-year director disqualification.