Bounce Back Loan Fraudster Jailed

Abdulrazag Zagroba, 54, from Manchester appeared at Manchester Crown Court on Friday June 24, 2022 where he was sentenced to 24 months before Recorder Hudson.

It was the first successful criminal prosecution of a bank loan fraudster with rebound for the Insolvency Service, which also saw Abdulrazag Zagroba disqualified from acting as a director for 7 years.

The court heard that Zagroba was the sole director of Amigo Pizza (Manchester) Ltd, incorporated in January 2020. The company operated a takeaway pizza business in the Stretford area of ​​Manchester until it was dissolved in October from the same year.

Zagroba’s application to dissolve the company was originally signed on June 17, 2020, but less than two weeks later he applied for a £20,000 bounce-back loan.

Zagroba did not disclose to the bank that the company was already being dissolved and he signed the loan statement indicating that the company would be able to make repayments. By the time the loan was due to be repaid in June 2021, the company had already been dissolved.

The terms of the Bounce Back loan clearly stated that the funds could only be used for business purposes and not for personal purposes.

However, when questioned on bail by Insolvency Service investigators, Zagroba admitted to having no intention of using the Bounce Back Loan for the business.

Zagroba claimed he arranged for friends to travel with around £14,000 in cash to give to family overseas. He used the remaining £6,000 to buy a car and insurance.

He pleaded guilty to charges of fraudulently claiming Covid-19 financial support to which he was not entitled contrary to the Companies Act 2006 and the Fraud Act 2006 at the Magistrates Court of Manchester City on May 9.

Julie Barnes, Chief Investigator at the Insolvency Service, said:

Covid loans were designed to support viable businesses during the pandemic. Abdulrazag Zagroba, however, cynically sought to exploit the covid loan scheme and by dissolving his business he intended to prevent any attempt by the lender to take action to recover the outstanding loan.

This phrase should serve as a warning to others who engage in this behavior, and they should tell the truth and return the money before it’s too late.

Notes to Editors

Abdulrazag Zagroba from Manchester and his date of birth is January 1968.

Amigo Pizza (Manchester) Ltd – CRO 12406923).

The outcome of the sentence was announced at Manchester Crown Court by Miss Recorder Hudson:

  • Section 2 Fraud Act 2006 (Fraud by misrepresentation) – 24 months imprisonment (immediate)
  • s1007 Companies Act 2006 – offense of aggravated disbarment – 20 months imprisonment (to run concurrently).

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Sara R. Cicero