Director sanctioned over Covid loans

Director knew or ought to have known the information was incorrect
Director knew or ought to have known the information was incorrect

Another micro company print boss has been disqualified from being a director for abusing Covid support loans.

Marie Townsend is the sole director and majority shareholder of DML Digital Ltd, based in Keighley. 

The Insolvency Service found that she had obtained two Bounce Back Loans (BBL) in breach of the conditions of the support scheme, which only allowed businesses to have a single loan. 

It said Townsend also provided financial information she knew to be inaccurate. 

The Insolvency Service report stated: “DML’s Sage data suggests that it had a turnover of £126,288 for the 2019 calendar year. Under the condition, DML’s turnover allowed a maximum BBL of £31,572. Mrs Townsend made an application for a £35,000 BBL, dated 12 May 2020, which included confirmation that the information provided in it was complete and accurate.”

DML received the £35,000 via TSB Bank in May 2020. 

In early September 2020, Townsend made an application to a second lender for a £50,000 BBL. 

That application stated that DML’s annual turnover for 2019 was £200,000. 

“As part of the application, Mrs Townsend confirmed a statement that the company had not previously received a BBL and that the information provided was complete and accurate."

On 7 September 2020, DML received £50,000 from the second lender.

“Further, Mrs Townsend provided financial information she knew or ought to have known was incorrect in order to obtain the second loan.”

Townsend, whose date of birth is 11 March 1973 and last known address is in Riddlesden, has been disqualified for 11 years. 

The ban took effect on 3 January 2023.

DML Digital was placed into liquidation with Rushtons Insolvency on 23 August 2021. 

“Total liabilities at liquidation amount to £203,658 which includes debts of £88,391 in respect of the two BBLs,” the Insolvency Service reported. 

Connected company DML Print House Ltd was also owed £80,000 according to the Statement of Affairs. 

Townsend gave up her shareholding and directorship of DML Print House on 2 January.