Directors face bans and custodial sentences
According to latest figures, 179 company directors have already been banned by the Insolvency Service from running companies for defrauding government support schemes like furlough and the Coronavirus Business Interruption Loan Scheme (CBILS).
In the year to 31 March 2022, 140 directors were banned, with another 37 banned in April and May 2022. Multinational law firm Pinsent Masons said the Insolvency Service is now “picking up the pace” in investigating and banning directors as more covid-related fraud cases are uncovered
Pinsent Masons added that being banned is one of the lighter punishments company directors can face. Directors convicted of fraud can face custodial sentences, which inevitably impac...