February 3, 2023

John Gerard McGarvey, aged 37, from Rutherglen, has been disqualified as a director for 11 years after claiming two separate Bounce Back Loans totaling £100,000.

McGarvey was the sole director of CKO Civil Engineering & Surveying Limited, which was incorporated in October 2019 and operated as a surveying company in Kirkinitlloch until it went bankrupt in November 2021.

CKO applied for its first Bounce Back loan of £50,000 in July 2020, with McGarvey stating that the company had a turnover of £225,000 last year.

Bounce Back loans were government-backed loans introduced to support businesses during the covid pandemic. Under the rules of the scheme, companies could apply for loans of up to 25% of their 2019 turnover, allowing them to borrow £2,000 up to a maximum of £50,000, as long as the money was used for the company’s economic benefit.

Companies were not allowed to apply for an additional loan unless they originally borrowed less than the maximum amount.

But just four weeks later, in August 2020, CKO applied for a second Bounce Back Loan of £50,000. This time, McGarvey applied to a different bank, saying the company had a turnover of £218,000 last year.

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The company struggled to survive and went bankrupt with debts of around £183,000, prompting an investigation by the Insolvency Service.

Investigators found that McGarvey applied for two loans — in violation of the scheme’s rules — and exaggerated CKO’s sales both times. The company’s most recent accounts showed a turnover of only about £46,400.

They also found that McGarvey had used the entire £100,000 for his own gain rather than to support his business.

His disqualification as a company director took effect on October 28, 2022 and lasts for 11 years. The disclaimer obligation prevents him from becoming directly or indirectly involved in the promotion, formation or management of a company, without court approval.

Steven McGinty, the Insolvency Service’s investigative manager, said: “Not only did John McGarvey grossly exaggerate the company’s turnover to get a first loan, he also asked a second bank for another loan to which his company was not entitled. . To compound his actions, he used the money for personal gain.

“His 11-year suspension should serve as a warning that if you misuse government aid, we will use all our powers to hold you accountable.”

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