Fraudster jailed for taking Covid loan to help pay historic £72m court order

A antheral has been jailed aft fraudulently receiving a £50,000 government-backed Covid indebtedness to assistance wage a £72 cardinal tribunal bid linked to a erstwhile fraud case, constabulary said.

Gerald Smith, 69, was imprisoned for 18 months implicit the bounce-back indebtedness aft helium spent £22,000 of it connected tribunal fees relating to a 2006 fraud lawsuit helium was progressive in, City of London Police said.

He besides spent the wealth connected “a lavish manner of eating astatine Mayfair restaurants and purchasing decorator clothes, Apple products and flights abroad”, the unit added.

Gerald Smith demonstrated an unthinkable grade of manipulation, conceit and greed arsenic helium exploited the bounce-back indebtedness strategy offered by the government

Detective Inspector Andrea Bakewell

Bounce-back loans were issued to enactment UK businesses during the pandemic and applicants could petition up to £50,000.

They would use to a nominated lender and the funds were guaranteed by the government.

Smith, of Southampton Row successful Bloomsbury, cardinal London, applied for £50,000 utilizing the sanction Ian Dunbar, who was listed arsenic a manager of Arcana Solutions, the unit said.

The funds were paid retired by Arcana Solutions and signed by physics signature arsenic Ian Dunbar, it added.

Officers recovered Ian Dunbar and Smith were the aforesaid idiosyncratic and helium was arrested successful 2022.

The unit said helium “remained soundless passim each questions enactment to him” aft his arrest.

Detective Inspector Andrea Bakewell, from the fraud operations squad astatine City of London Police, said: “When galore businesses were struggling to support their caput supra h2o during the Covid pandemic, criminals were making usage of the fiscal assistance connected offer.

“Gerald Smith demonstrated an unthinkable grade of manipulation, conceit and greed arsenic helium exploited the bounce-back indebtedness strategy offered by the government.

“This level of exploitation during 1 of the hardest periods this state has ever faced is thing we volition not tolerate.”

In 2006, Smith pleaded blameworthy to stealing much than £34 cardinal that belonged to a bundle steadfast called Izodia, based successful Slough, Berkshire, aft an probe by the Serious Fraud Office.

He had acquired a involvement successful the institution done his Jersey-based steadfast Orb Group and transferred much than £34 cardinal of Izodia currency assets to Jersey which helium utilized for himself, City of London Police said.

Smith was fixed an eight-year jailhouse word successful 2006 and a justice made a confiscation bid of astir £40 cardinal successful 2007.

He owes much than £72 cardinal aft interest, the unit said.