Hotelier Richard Courtenay jailed for £450k Covid loan fraud

London hotelier Richard Courtenay has been sentenced after fraudulently securing £450,000 in Covid 'bounce back' loans. Courtenay made nine loan applications between May and June 2020 for five companies, submitting false declarations about their turnover and applying for multiple loans when only one per business was permitted.

The 62-year-old, of Larpent Avenue, London, pleaded guilty to nine counts of fraud and one count of money laundering in July. He was sentenced to three years in prison, suspended for three years, at Southwark Crown Court on Thursday, September 3. He was also ordered to complete 150 hours of unpaid work and attend 10 days of rehabilitation activity.

Loan Applications and Repayment

Courtenay's applications, each for the maximum £50,000, were made for Hotel Belgravia Limited, Belgravia Rooms Limited, Lebex Limited, Directlingua Limited, and Belgravia Accommodation Ltd. The companies were interlinked, operating as a single hotel business under the name 'Belgravia Rooms'.

He failed to use the funds for their intended business purposes, instead moving them swiftly into personal or other company accounts. Courtenay has since repaid the full £450,000, but only after investigations by the Insolvency Service commenced.

During an interview under caution, Courtenay responded 'no comment' to questions. In a prepared statement, he denied dishonesty, claiming he believed turnover figures were accurate but admitted he had not checked them. He also stated he did not realise only one loan was allowed per company, despite it being stated on the application form.

David Snasdell, Chief Investigator at the Insolvency Service, commented that Courtenay, an experienced businessman, claimed not to have read his loan applications carefully. Mr Snasdell added that Courtenay showed limited remorse, denied dishonesty, and blamed banks for his repayment issues. He stated that Courtenay's actions were dishonest when the scheme relied on the honesty of business owners during the pandemic.

The Insolvency Service has a track record in tackling Bounce Back Loan fraud and will continue to hold fraudsters to account, Mr Snasdell said. The scheme was intended to support businesses during their time of need.