A Birmingham-based businessman, Raashid Khan, 29, has been sentenced to four years in prison after admitting to multiple counts of fraud, forgery, and insolvency offences.
The former director of Ikandy Wholesale Ltd was found guilty of forging documents, securing a fraudulent £50,000 Covid Bounce Back Loan, and withdrawing over £60,000 from company accounts after his business entered liquidation.
Khan, of Trafalgar Road, Moseley, submitted a fake letter to a creditor chasing payment for £75,000 worth of fireworks and forged court documents to unfreeze his company’s bank account. He falsely claimed that his business, which traded in bulk goods including fireworks and meat, had an annual turnover of £1.5 million in 2019 to qualify for the government loan.
Mark Stephens, Chief Investigator at the Insolvency Service, condemned Khan’s actions, stating:
*”His behaviour showed an utter disregard for the insolvency regime… The Insolvency Service will not tolerate such an abuse of public money and attempts to deprive creditors of what they are owed.”*
Ikandy Wholesale Ltd entered liquidation in June 2020, leaving creditors with over £240,000 in unpaid debts. Despite restrictions on the company’s bank account, Khan managed to forge documents and withdraw funds for personal use. He was also disqualified as a company director for 12 years in January 2021.
The sentencing, handed down at Birmingham Crown Court, serves as a stark warning against the misuse of public funds and fraudulent business practices.