Pandemic-related fraud – are directors being held to account?

Tim Carter (+44 (0)1483 734248, tim.carter@stevens-bolton.com) is a partner and Lucy Trott (+44 (0)1483 401261, lucy.trott@stevens-bolton.com) a senior knowledge lawyer at Stevens & Bolton LLP.

Government-backed loan schemes implemented to assist ailing businesses during the pandemic have been subject to widespread abuse. An estimated UK£4.9 billion of the UK£47 billion invested in business support loans during the life of the pandemic is thought have been lost to fraud and up to UK£17 billion may never be repaid. In response to concerns about potential abuse of limited company liability, new legislation received Royal Assent on 15 December 2021 – The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 (the Act). But how effective has this been to date in holding directors accountable? What more could be done to investigate fraud? ask Tim Carter and Lucy Trott of Stevens & Bolton LLP.