Business Owner Jailed for Fraudulent Covid Loans

Matthew Temple, a business owner from Tyneside, has been sentenced to two years in prison for fraudulently obtaining £150,000 through the UK government's Bounce Back Loan scheme during the Covid-19 pandemic. Temple, who was known as Mehdi Ghaneh-Keisami at the time of the offences, secured three separate £50,000 loans for his company, Pizza Cottage (Whitley Bay) Limited, despite businesses being eligible for only one such loan.

Temple, 44, admitted to three counts of fraud by false representation at North Tyneside Magistrates’ Court and was sentenced at Newcastle Crown Court. The court heard that Temple secured the first loan in May 2020, shortly after the scheme was launched. He applied for the second loan just three days later, and a third loan the following month, each time falsely declaring that it was the company's only application under the scheme.

The Insolvency Service, which conducted the investigation, revealed that more than £131,000 of the loan money was not used for business purposes. Instead, Temple spent £11,090 on 46 gambling transactions and £264 on children's toys and play equipment. These expenditures were made from the company's business accounts, with the toys being purchased just a day after the first loan was deposited.

Fraudulent Use of Funds

David Snasdell, Chief Investigator at the Insolvency Service, stated that Temple exploited the taxpayer-backed scheme intended to support businesses during the pandemic. "Company funds were then spent on gambling and even children’s toys and play equipment, despite Temple declaring the money would be used for the benefit of his business," Snasdell said.

Temple's fraudulent activities have led to further actions by the Insolvency Service, which is now seeking to recover the misused funds under the Proceeds of Crime Act 2002. Temple had already been disqualified as a company director for 12 years in 2024 following civil investigations into his conduct.

Legal Consequences and Recovery Efforts

The Bounce Back Loan scheme was designed to provide financial support to businesses struggling during the pandemic, allowing them to borrow up to £50,000. Temple's actions not only violated the terms of the scheme but also misappropriated funds intended for legitimate business use.

The Insolvency Service is committed to recovering the fraudulently obtained funds and returning them to the public purse. Temple's case highlights the ongoing efforts to tackle financial wrongdoing and ensure economic confidence.

Temple's business, Pizza Cottage (Whitley Bay) Limited, was incorporated in June 2016, with Temple as its sole director. The company operated on East Parade in Whitley Bay. The case underscores the importance of adhering to the legal and ethical standards expected of business directors, as outlined by the Insolvency Service's Director Information Hub.