Richard Courtenay, 62, secured the money through nine Bounce Back Loan applications made between May and June 2020 using five companies. The loans were introduced by the UK Government during the COVID-19 pandemic to provide rapid financial support to businesses affected by the crisis.
Courtenay pleaded guilty in July to nine counts of fraud and one count of money laundering. He was sentenced at Southwark Crown Court on September 3 and was also ordered to complete 150 hours of unpaid work and undertake 10 days of rehabilitation activity.
Investigators found that Courtenay repeatedly provided false information about the turnover of companies connected to him and obtained multiple loans despite the scheme allowing only one Bounce Back Loan per eligible business. Each of the nine applications was for £50,000, the maximum available under the programme.
The companies involved were Hotel Belgravia Limited, Belgravia Rooms Limited, Lebex Limited, Directlingua Limited and Belgravia Accommodation Ltd. Investigators found that some of the businesses did not have the financial position represented in the loan applications.
One of the earliest applications was made for Hotel Belgravia Limited, a company incorporated in January 2020 with Courtenay as its sole director. He declared an annual turnover of £500,000, although the company later filed dormant accounts.
The money did not remain within the businesses for which it had been obtained. Investigators found that funds were transferred into Courtenay’s personal accounts, other companies linked to him and the accounts of associates.
He also made two applications for Belgravia Rooms Limited. On both occasions, he declared turnover of £400,000 and falsely stated that the company had not previously received another Bounce Back Loan.
The largest concentration of borrowing involved Lebex Limited, for which Courtenay obtained a combined £200,000 from four different banks. During the applications, he declared different turnover figures of £600,000, £500,000 and £400,000 and again stated that the company had not already received a Bounce Back Loan.
Some of the money obtained for Lebex was subsequently transferred to Courtenay's personal accounts and other businesses, while part of it was used to purchase cryptoassets.
Another application was made for Directlingua Limited, where Courtenay declared turnover of £400,000 despite the company having little more than £14,000 in cash. Investigators said the money was again used for personal purposes rather than solely for legitimate business needs.
Courtenay also arranged for a £50,000 application to be submitted for Belgravia Accommodation Ltd, despite not being its official director. A listed director made the application after being instructed by Courtenay, with turnover declared at £250,000. The funds were subsequently transferred to Courtenay and an associate.
The businessman later repaid the full £450,000, but the repayment came only after the Insolvency Service had begun investigating his conduct.
During an interview under caution, Courtenay answered “no comment” to investigators' questions. In a prepared statement, however, he denied acting dishonestly. He claimed he believed the turnover figures were accurate, although he acknowledged that he had not checked them.
Courtenay also said he did not realise that a company could receive only one Bounce Back Loan, despite the restriction being stated on the application form. He argued that he had assumed the banks would conduct their own checks before approving the applications and blamed the banks for not pursuing him more aggressively over repayment.
The Insolvency Service rejected that explanation. Chief Investigator David Snasdell said Courtenay was an experienced businessman and criticised his claim that he had failed to read or check the loan applications carefully.
Snasdell said the case demonstrated how the emergency lending scheme could be exploited when applicants deliberately provided false information. He also criticised Courtenay for showing limited remorse, particularly because he continued to deny dishonesty and blamed the banks for the problems surrounding repayment.
The case highlights one of the difficulties created by the speed with which governments had to distribute financial assistance during the COVID-19 pandemic. The Bounce Back Loan Scheme was designed to provide businesses with rapid access to money at a time when lockdowns and restrictions were placing severe pressure on companies across the UK.
While the scheme helped businesses obtain funding quickly, its reliance on applicants providing accurate information also created opportunities for abuse. Courtenay's case shows how multiple applications, false turnover declarations and the movement of funds between personal and business accounts can become the focus of criminal investigations years after emergency support was provided.
The sentence does not mean Courtenay will immediately serve three years in prison. The prison term was suspended for three years, meaning he will remain in the community subject to the conditions imposed by the court, alongside the unpaid work and rehabilitation requirements.
His conviction also closes a criminal case that began with applications made more than six years ago, but the wider effort to investigate suspected abuse of COVID-19 support schemes continues as UK authorities pursue individuals accused of obtaining public-backed financial assistance dishonestly.
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