Name: RICHARD JOHN REID

Name: PINNACLE POTENTIAL LIMITED and PINNACLE EXCELLENCE LTD

Date of Birth: 4 / 3 / 1975

Date Order Starts: 27 / 3 / 2024

Disqualification Length: 11 Years 0 Month(s)

CRO Number: 12161449and11291046

Last Known Address: 11 Eugene Marais Avenue,, Constantia,, , , Cape Town,, 7806

Conduct: Richard Reid, on 13 May 2020, provided false information, causing Pinnacle Excellence Ltd (“Excellence”) to obtain a Bounce Back Loan (“BBL”) of £43,000, when the company was not eligible for a BBL. In addition, the £43,000 funds obtained were not used for the economic benefit of Excellence, in that: Eligibility To be eligible for a BBL, a company was required to be engaged in trading or commercial activity in the UK at the date of the BBL application, be carrying on business on 01 March 2020 and had been adversely affected by coronavirus (COVID-19). A company could apply for a loan of between £2,000 to £50,000, up to a maximum of 25% of calendar year 2019 turnover. If a company was established after 01 January 2019, the 25% limit was to be applied to estimated turnover for the 12 months from the date the business started. Funds obtained under the BBL scheme were to be used for the economic benefit of the company Excellence Excellence was incorporated on 19 August 2019, with Mr Reid appointed as sole director. Excellence opened a bank account on 26 August 2019. Bank statements for Excellence show no transactions in the 8 and a half month period between 26 August 2019 and 13 May 2020. On 13 May 2020, Mr Reid applied for a BBL of £43,000 on behalf of Excellence. To claim such a loan, Mr Reid would have had to declare turnover of £172,000 in the BBL application. As no sales had been made in the 8 and a half months between 26 August 2019 and 13 May 2020, Excellence would have had to have turnover of £172,000 in the remaining 3 and half months to be eligible for a BBL of £172,000. Accounts for the year end 31 August 2020 declare turnover of £269, though the bank statements show this to be BBL contra interest and not sales receipts. Bank statements confirm receipt of £43,000 on 13 May 2020. Of the funds received, £27,509 was transferred to connected companies described on bank statements as “loan”, £5,000 was paid to an individual and described on bank statements as a “loan”, and £10,490 was paid to a finance company with a reference of “R Reid” on the bank statements. Excellence entered Creditors Voluntary Liquidation on 02 February 2023. At liquidation, creditors total £46,500, of which £43,000 relates to the BBL. Richard Reid, on 04 May 2020, provided false information causing Pinnacle Potential Ltd (“Potential”) to obtain a BBL of £25,000, when the company was not eligible for a BBL. In addition, at least £23,215 of the funds obtained were not used for the economic benefit of Potential, in that: Eligibility To be eligible for a BBL, a company was required to be engaged in trading or commercial activity in the UK at the date of the BBL application, be carrying on business on 01 March 2020 and had been adversely affected by coronavirus (COVID-19). A company could apply for a loan of between £2,000 to £50,000, up to a maximum of 25% of calendar year 2019 turnover. If a company was established after 01 January 2019, the 25% limit was to be applied to estimated turnover for the 12 months from the date the business started. Funds obtained under the BBL scheme were to be used for the economic benefit of the company Potential Potential was incorporated on 04 April 2018. On 04 May 2020, Mr Reid applied for a BBL on behalf of Potential, declaring that calendar year 2019 turnover was £100,000. Bank statements covering the calendar year 2019 confirm total receipts of £4,223, none of which appears to be turnover. Accounts for the financial year ending 31 April 2020 confirm that Potential had no turnover. Bank statements confirm receipt of £25,000 on 08 May 2020. Of the funds received, £20,400 was transferred to a connected company described on bank statements as “loan” and £2,815 was paid to HMRC in respect of child benefit. Excellence entered Creditors Voluntary Liquidation on 02 February 2023. At liquidation, creditors total £31,058, of which £25,000 relates to the BBL. 

This information is correct as at 7 / 3 / 2024

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