Case details for Aamer ASLAM

Name: Aamer ASLAM

Name: Scholars Academy Limited

Date of Birth: 9 / 11 / 1982

Date Order Starts: 2 / 11 / 2021

Disqualification Length: 11 Years 0 Month(s)

CRO Number: 11707497

Last Known Address: 42 Netheroyd Hill Road,, , , , HUDDERSFIELD,, HD2 2LS

Conduct: Aamer Aslam (“Mr Aslam”) caused Scholars Academy Limited (“Scholars”) to fraudulently apply for a Government Backed Bounce Back Loan (“BBL”) when he knew or ought to have known that Scholars was not eligible for that loan. Further, Mr Aslam has failed to provide accounting records evidencing that the BBL funds were used for the economic benefit of Scholars, which was a requirement of the BBL scheme, in that: 1. Mr Aslam was a director of Scholars from 03 December 2018 until liquidation. 2. On 17 May 2020, Mr Aslam applied for a BBL of £50,000 on behalf of Scholars. In the application form, Mr Aslam declared that Scholars’ up to date annual turnover was £200,000. 3. The BBL scheme allowed businesses affected by the Coronavirus pandemic to apply for a government backed loan of between £2,000 and £50,000, up to a maximum of 25% of turnover in the calendar year 2019. Where a business had not traded for the whole of 2019, a business could provide an estimate of their annual turnover. 4. The first payment that can be seen going into Scholars’ bank account from a customer was a payment of £100 on 22 August 2019, indicating that Scholars did not trade for the whole of the calendar year 2019 and so was eligible to provide an estimated figure for annual turnover on the BBL application form. 5. Total customer receipts into Scholars’ bank account from 22 August 2019 to 17 May 2020 were £3,110, an average of £346 per month. The highest monthly income Scholars received from customers was £640 in February 2020. Using the February 2020 figure as an estimated maximum monthly income gives annual turnover of a maximum of £7,680. 6. Mr Aslam has failed to provide any evidence that the estimated annual turnover of £200,000 was appropriate. Based on the available records, annual turnover was a maximum of £7,680. This was below the turnover level of £8,000 that was required in order to obtain the minimum BBL of £2,000 and so Scholars was not eligible for the BBL scheme. 7. On 21 May 2020, £50,000 was credited to Scholars’ bank account as a result of the BBL application. 8. Mr Aslam has stated that the BBL funds were used to fund marketing and advertising services provided by four self-employed individuals (“the four individuals”), who were not connected to the directors of Scholars. Mr Aslam’s co-director later confirmed that one of the four individuals who received funds from Scholars was a member of his family. 9. The four individuals each received monthly payments from Scholars of £2,000 between 26 June 2020 and 26 October 2020, with two of them receiving an additional payment of £1,900 each on 26 November 2020, a total of £43,800. 10. Scholars’ bank statements show that after 21 May 2020 when Scholars received the BBL funds, the only payments into Scholars’ bank account from customers were three payments of £100 each made in July 2020, September 2020 and October 2020, all from the same customer. Scholars’ bank statements show that this was an existing customer of Scholars and so this was not new custom generated by the expenditure stated to be on marketing and advertising. Mr Aslam has not provided evidence of any new custom generated by the £43,800 he claims was spent on marketing and advertising between 26 May 2020 and 26 November 2020. 11. In late November 2020, Mr Aslam sought professional advice into the affairs of the company and on 19 January 2021 Scholars went into liquidation. 12. The bank who gave Scholars the BBL confirmed that at the date of liquidation the outstanding balance on the BBL was £49,846. 13. At the date of liquidation Scholars had assets of £168, liabilities of £50,046 and a deficiency to creditors of £49,878. 14. The Liquidator has advised that Mr Aslam’s co-director has repaid £25,000 in full and final settlement of the claims against both directors, reducing the deficiency to creditors to £24,878 

This information is correct as at 13 / 10 / 2021


Name: Razwan ASHRAF

Name: SCHOLARS ACADEMY LIMITED

Date of Birth: 15 / 4 / 1990

Date Order Starts: 1 / 11 / 2021

Disqualification Length: 10 Years 0 Month(s)

CRO Number: 11707497

Last Known Address: 55 Devonshire Street,, , , , KEIGHLEY,, BD21 2BJ

Conduct: Progress First Limited Razwan Ashraf (“Mr Ashraf”) caused Progress First Limited (“Progress”) to fraudulently apply for a Government Backed Bounce Back Loan (“BBL”) of £50,000 when he knew or ought to have known that the company could apply for a maximum BBL of £9,743. Further, he has failed to provide accounting records evidencing that the BBL funds were used for the economic benefit of Progress, which was a requirement of the BBL scheme, in that: 1. He was the sole director of Progress from 04 January 2018 until liquidation. 2. On 14 May 2020, he applied for a Bounce Back Loan of £50,000 on behalf of Progress. In the application form, he declared that Progress’ annual turnover was £200,000. 3. The BBL scheme allowed businesses affected by the Coronavirus pandemic to apply for a government backed loan of between £2,000 and £50,000, up to a maximum of 25% of turnover in the calendar year 2019. 4. Progress’ bank statements show receipts of £38,973 in the calendar year 2019. 5. On 30 September 2019, he approved Progress’ accounts for year ended 31 January 2019, which showed turnover of £37,350, indicating that he was aware that Progress’ annual turnover was below the £200,000 he declared on the BBL application form. Progress’ accounts for year ended 31 January 2020, although not approved by him until 20 January 2021, show turnover of £39,708, which shows that Progress’ income did not substantially increase after 31 January 2019. 6. Using the receipts into Progress’ bank account in 2019, he overstated Progress’ turnover in the BBL application form by £161,027, resulting in Progress being granted a BBL that was £40,257 more than the amount that Progress was eligible to borrow. 7. On 18 May 2020, £50,000 was credited to Progress’ bank account as a result of the BBL application. 8. After 18 May 2020, Progress received total payments into its bank account from customers of £350, with the last payment being received on 11 September 2020. 9. Between 23 June 2020 and 28 September 2020, Progress made payments to three individuals (“the three individuals”) totalling £42,000. No accounting records have been delivered up evidencing that Progress received any economic benefit from the payments to the three individuals. 10. On 28 October 2020, he engaged an Insolvency Practitioner to place the company into liquidation and on 16 November 2020 Progress went into liquidation. 11. The bank who gave Progress the BBL has confirmed that at the date of liquidation, the outstanding balance on the BBL was £49,977. 12. At the date of liquidation, Progress had assets of £6,486 and liabilities of £56,755 and a deficiency to creditors of £50,269. 13. The Liquidator has advised that he has repaid £35,000 in full and final settlement of the Liquidator’s claim against him, reducing the deficiency to creditors to £15,269. Scholars Academy Limited Razwan Ashraf (“Mr Ashraf”) caused or allowed Scholars Academy Limited (“Scholars”) to fraudulently apply for a Government Backed Bounce Back Loan (“BBL”) when he knew or ought to have known that Scholars was not eligible for that loan. Further, he has failed to provide accounting records evidencing that the BBL funds were used for the economic benefit of Scholars, which was a requirement of the BBL scheme, in that: 1.He was a director of Scholars from 03 December 2018 until liquidation. 2.On 17 May 2020, Scholars applied for a BBL of £50,000. In the application form, Scholars declared that up to date annual turnover was £200,000. 3.The BBL scheme allowed businesses affected by the Coronavirus pandemic to apply for a government backed loan of between £2,000 and £50,000, up to a maximum of 25% of turnover in the calendar year 2019. Where a business had not traded for the whole of 2019, a business could provide an estimate of their annual turnover. 4.The first payment that can be seen going into Scholars’ bank account from a customer was a payment of £100 on 22 August 2019, indicating that Scholars did not trade for the whole of the calendar year 2019 and so was eligible to provide an estimated figure for annual turnover on the BBL application form. 5.Total customer receipts into Scholars’ bank account from 22 August 2019 to 17 May 2020 were £3,110, an average of £346 per month. The highest monthly income Scholars received from customers was £640 in February 2020. Using the February 2020 figure as an estimated maximum monthly income gives annual turnover of a maximum of £7,680. 6. He has failed to provide any evidence that the estimated annual turnover of £200,000 was appropriate. Based on the available records, annual turnover was a maximum of £7,680. This was below the turnover level of £8,000 that was required in order to obtain the minimum BBL of £2,000 and so Scholars was not eligible for the BBL scheme. 7. On 21 May 2020, £50,000 was credited to Scholars’ bank account as a result of the BBL application. 8. He has stated that the BBL funds were used to fund marketing and advertising services provided by four self-employed individuals (“the four individuals”), who were not connected to the directors of Scholars. He later confirmed that one of the four individuals who received funds from Scholars was a member of his family. 9. The four individuals each received monthly payments from Scholars of £2,000 between 26 June 2020 and 26 October 2020, with two of them receiving an additional payment of £1,900 each on 26 November 2020, a total of £43,800. 10. Scholars’ bank statements show that after 21 May 2020 when Scholars received the BBL funds, the only payments into Scholars’ bank account from customers were three payments of £100 each made in July 2020, September 2020 and October 2020, all from the same customer. Scholars’ bank statements show that this was an existing customer of Scholars and so this was not new custom generated by the expenditure stated to be on marketing and advertising. He has not provided evidence of any new custom generated by the £43,800 he claims was spent on marketing and advertising between 26 May 2020 and 26 November 2020. 11. In late November 2020, he sought professional advice into the affairs of the company and on 19 January 2021 Scholars went into liquidation. 12. The bank who gave Scholars the BBL confirmed that at the date of liquidation the outstanding balance on the BBL was £49,846. 13. At the date of liquidation Scholars had assets of £168, liabilities of £50,046 and a deficiency to creditors of £49,878. 14. The Liquidator has advised that he has repaid £25,000 in full and final settlement of the claims against both directors, reducing the deficiency to creditors to £24,878. 

This information is correct as at 15 / 10 / 2021



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