Directors of a Cornish lettings and estate agents husband and wife team have been disqualified for a combined twelve years from being directors after admitting abusing the Covid Bounce Back Loan scheme.

The husband 56 year old David Elderkin vastly exaggerated Fowey River Limited’s annual turnover by £180,000 which helped him secure the maximum amount allowed under the Covid Bounce Back loan scheme.

He then transferred money from the scheme into his own personal account and used it to pay off a loan to his father and a payment to a connected company.

His wife, Jennifer Elderkin supported him and allowed the payments to be made.

David Elderkin, of Carnon Downs in Truro, signed the disqualification order undertaking banning him from being a company director for eight years and his wife Jennifer Elderkin, signed a four-year undertaking.

Kevin Read, Chief Investigator at the Insolvency Service, says: “David Elderkin was responsible for applying for more Covid support than his business was entitled to and then using the funds for his personal benefit.

“His wife Jennifer Elderkin aided her husband’s misconduct by allowing the money to not be used for the economic benefit of their Fowey River business.

“Tackling abuse of the Bounce Back Loan scheme is a key priority for the Insolvency Service and the behaviour of the Elderkins represents a significant breach of the standards that are expected of company directors.”

Elderkin scammed the Bounce Back Loan scheme of £50,000 in May 2020 by claiming that Fowey River Limited’s annual turnover was £250,000.

Under the terms and conditions of the scheme companies were able to apply for a loan of up to 25 per cent of its annual turnover up to the maximum of £50,000.

However investigations undertaken by the Insolvency Service uncovered that in fact the company’s turnover  was £68,682, this meant the biggest loan the company was entitled to was just over £17,000, and should have only be used to help the company during the pandemic.

David Elderkin’s father was repaid £10,000 and over £10,000 was paid into two of the ‘rogues’ credit cards.

Another £10,000 was paid to a connected company that the Elderkins were directors of before they were disqualified.

In April 2021 Fowey River Ltd went into liquidation without having made any loan repayments back to the scheme.