Director of nursing staff recruiter disqualified after wrongful Bounce Back Loan

A director of a temporary nursing staff recruiter in Southampton has been disqualified as a director for 11 years.

Selvendran Ramar, the sole director of SJSA Ltd, which claimed to provide temporary nursing staff to hospitals, mental health services, care homes and residential homes, was disqualified after he wrongfully obtained a £45k Bounce Back Loan in July 2020.

The company was incorporated on 30 March 2020.

Under the Bounce Back Loan scheme, genuine businesses affected by the pandemic could take out interest-free, taxpayer-backed loans of up to £50k. However, businesses had to have been trading before 1 March 2020 to qualify for funding through the scheme, meaning SJSA Ltd was not eligible, according to the Insolvency Service.

In a press statement, the Insolvency Service revealed in addition, Ramar overstated the company’s turnover to secure the Bounce Back Loan, confirming the company’s annual turnover was £180k. “In reality, in the first three months of trading the company had received just £5.5k in income,” the Service said.

On receipt of the Bounce Back Loan, Ramar transferred £35k to his personal account from the business, and the remaining £10k to a family member.

SJSA Ltd went into liquidation in September 2021, which triggered an investigation by the Insolvency Service. At the point of liquidation, the £45k Bounce Back Loan was the entirety of SJSA Ltd’s declared liabilities.

The Liquidator has recovered £25k of the Bounce Back Loan.

The Secretary of State for Business, Energy and Industrial Strategy accepted a disqualification undertaking from Ramar, after he did not dispute that he caused SJSA Ltd to obtain a Bounce Back Loan that it was not entitled to. His ban is effective from 7 December 2022 and lasts for 11 years.

The disqualification undertaking prevents him from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.

Lawrence Zussman, deputy head of company investigations at the Insolvency Service, said: “Not only was Selvendran Ramar’s company not trading by the required 1 March 2020 date and therefore not entitled to receive the Bounce Back Loan, but he then tried to divert the funds for his personal use.

“Within four days of the company receiving the funds, he transferred £35k into his own account and paid the remaining £10k to a family member.

“The purpose of the Bounce Back Loan scheme was that businesses were meant to utilise the monies specifically for the ‘economic benefit of the business’ which was clearly not the case here,” Zussman said.

• Comment below on this story. Or let us know what you think by emailing us at [email protected] or tweet us to tell us your thoughts or share this story with a friend.

Kelly completes Motion Recruitment Partners acquisition

Global talent solutions provider Kelly has completed the acquisition of Motion Recruitment Partners (MRP) from private investment firm Littlejohn & Co for $425m (£332m).

Contracts 4 June 2024

Arden University develops apprenticeship course for NHS trust to address staff shortages

Arden University has developed a Senior Leader Apprenticeship for the health and care sector to help retain and upskill its existing workforce.

New to Market 21 May 2024

HBM Learning secures loan from Rosebud Finance to blossom

Lytham-based specialist recruitment agency and training provider HBM Learning has secured a £15k loan from Lancashire County Council’s Rosebud Finance.

Contracts 21 May 2024


This week’s appointments include: Acorn by Synergie, Adria Solutions, Remote

People 21 May 2024