A Brighton man has avoided immediate jail time after defrauding the government out of £150,000 through a scheme involving bounce back loans intended for struggling businesses during the pandemic.
Mehmet Akyuz, age 36, residing on Conway Street in Brighton, East Sussex, was sentenced at Hove Crown Court to a two-year suspended sentence after admitting guilt to three charges of fraud by false representation. He had previously submitted loan applications for companies that were not actually operational at the time.
The court heard that Akyuz applied for three loans, each reaching the maximum amount of £50,000, distributed across his two businesses:
- Green and Hove Limited, described as a food and grocery store with an attached café
- Leather Wear Limited, purportedly involved in importing bags and belts.
Both companies were established in 2019, with Akyuz listed as the sole director.
Akyuz falsely claimed substantial turnover figures: £270,000 for the café and between £215,000 and £225,000 for the import business. However, official records revealed a different story. Green and Hove Limited filed dormant accounts for both 2020 and 2021, while Leather Wear Limited remained inactive from 2020 to 2022.
As part of his punishment, Akyuz was also ordered to complete 300 hours of community service. Furthermore, he has been disqualified from serving as a company director for five years. A hearing concerning the recovery of assets obtained through fraudulent means is scheduled for September 18th at Hove Crown Court.
David Snasdell, Chief Investigator at the Insolvency Service, condemned Akyuz’s actions:
“Mehmet Akyuz’s deliberate misuse of taxpayer-funded bounce back loans to benefit his own interests is entirely unacceptable. These funds were created to provide crucial support for legitimate small businesses navigating the challenges of the pandemic and should not be exploited in this cynical manner.”
Snasdell added, “The Insolvency Service remains dedicated to rigorously investigating cases of fraud and ensuring that individuals who abuse these schemes are brought to justice.”
