UK Hotelier Jailed, Suspended for £450,000 COVID Loan Fraud
A 62-year-old London hotelier, Richard Courtenay, has been sentenced to three years in prison, suspended for three years, after fraudulently obtaining £450,000 through nine applications under the UK Government’s COVID-19 Bounce Back Loan scheme. Courtenay secured the funds between May and June 2020 using five companies Hotel Belgravia Limited, Belgravia Rooms Limited, Lebex Limited, Directlingua Limited and Belgravia Accommodation Ltd. According to the UK Insolvency Service, he inflated the turnover figures of the companies, obtained multiple loans for the same business and failed to use the money for its intended business purposes. The first application was made for Hotel Belgravia Limited, which had been incorporated in January 2020 with Courtenay as its sole director. He declared a £500,000 turnover, although dormant accounts were later filed for the company. The money was subsequently moved into Lebex Limited and to two associates. Courtenay later obtained two separate £50,000 loans for Belgravia Rooms Limited, declaring a £400,000 turnover and falsely stating that it had not previously received a Bounce Back Loan. He also secured £200,000 through four applications for Lebex Limited from different banks, using inconsistent turnover figures of £600,000, £500,000 and £400,000.
The Insolvency Service said Courtenay moved the funds into his personal accounts, other companies and, in some cases, used them to purchase cryptoassets. For Directlingua Limited, he declared a £400,000 turnover despite the company having little more than £14,000 in cash, while £50,000 was obtained for Belgravia Accommodation Ltd through one of its listed directors after Courtenay instructed the person to apply. The money was again transferred to his personal accounts and other businesses. Courtenay pleaded guilty in July to nine counts of fraud and one count of money laundering and was sentenced at Southwark Crown Court on September 3. He was also ordered to complete 150 hours of unpaid work and attend 10 days of rehabilitation activity. The Insolvency Service said he repaid the £450,000 in full, but only after investigations into his conduct had begun. During a formal interview, Courtenay responded “no comment” to questions but later denied dishonesty in a prepared statement, saying he believed the turnover figures were accurate despite admitting he had not checked them. He also claimed he did not realise only one Bounce Back Loan was permitted per company and said he assumed the banks would carry out their own checks. Insolvency Service Chief Investigator David Snasdell, however, said Courtenay’s actions showed a determination to exploit a scheme designed to support businesses during the pandemic, describing the conduct as dishonest and driven by greed.
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