Pair used Covid loan to help buy Lanzarote house

Two men have been sentenced for fraudulently obtaining loans to buy a property in Spain.

Alex Hope and Liam Jones, who ran Hull company Virtutum Limited, which sold cannabidiol products, obtained a £25,000 Covid Bounce Back loan and a £56,000 loan from a private lender by inflating the turnover of their company.

The money was laundered through a number of bank accounts and put towards buying a €245,825 (£210,174) house in Lanzarote, the Insolvency Service said.

Both men pleaded guilty to fraud charges at Hull Crown Court and were handed suspended jail terms on Monday.

Hope, 41, of Elm Tree, Halsham, East Yorkshire, was given a three-year prison sentence, suspended for three years.

Jones, 42, of Edinburgh Drive, Holton-le-Clay, Lincolnshire, was sentenced to 10 months in prison, suspended for 18 months.

The Insolvency Service said the pair had signed the loan agreements giving personal guarantees that no legal action was taking place against them.

However, both defendants were being pursued by a specialist litigation firm for about £800,000.

Mark Stephens, chief investigator at the Insolvency Service, said: "The Insolvency Service remains committed to holding those who exploit loan schemes and financial systems for personal gain to account."

A Proceeds of Crime hearing will take place later to try and recover the money, the Insolvency Service added.

Listen to highlights fromHull and East Yorkshire on BBC Sounds, watch the latest episode of Look North.

Download the BBC News app from the App Storefor iPhone and iPad orGoogle Play for Android devices