Crooked couple of Fowey River estate agents banned for abusing Covid Bounce Back loan

The husband and wife bosses of a former Cornwall estate agents company have been banned from being company directors after admitting their role in the abuse of Covid business loans. David Elderkin, 56, overstated Fowey River Limited’s annual turnover by more than £180,000 to secure the £50,000 Bounce Back loan, which was the maximum amount businesses were entitled to under the scheme to help companies recover from the effects of the pandemic.

The loan money was then transferred to his personal account, used to pay off a loan to his father and given to an associated company. Elderkin was supported by his wife Jennifer Elderkin, 55, who allowed the payments to be made.

The couple, from Carnon Downs, near Truro, were also, until April 29 this year, directors of I for Design Ltd, which used to run retail stores in Truro and Fowey called The Clementine. The store in Fowey is now called LIGA Eco Store and sells eco living products. According to their own LinkedIn pages, the couple is still both involved in LIGA.

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Following action by the government’s Insolvency Service, Mr Elderkin signed a disqualification undertaking banning him from being a company director for eight years. Ms Elderkin signed a four-year commitment.

Kevin Read, chief investigator at the Insolvency Service, said: “David Elderkin was responsible for claiming more Covid support than his business was entitled to and then used the funds for his own personal benefit. His wife Jennifer Elderkin aided her husband’s misconduct by allowing the money not to be used for the economic benefit of their business in Fowey River.

“Tackling the abuse of the Bounce Back Loan scheme is a key priority for the Insolvency Service and Elderkins’ conduct is a significant breach of the standards that are expected of company directors.”

At the time of the Bounce Back loan, which was introduced by the government to help small businesses survive the Covid crisis, Mr Elderkin successfully applied for the £50,000 Bounce Back loan in May 2020, claiming that Fowey’s annual turnover River was pounds. 250,000.

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Businesses could apply for a single loan of up to 25% of their 2019 turnover, with a maximum loan limit of £50,000 set under the scheme’s rules. Investigations by the Insolvency Service revealed that the actual turnover of the business was £68,682, meaning the company was entitled to a loan of just over £17,000.

Money lent to companies could only be used for the economic benefit of the business. However, £10,000 was repaid to Mr Elderkin’s father and more than £10,000 was paid on two credit cards in Elderkin’s name.

A further £10,000 was paid to another company whose directors were until recently the Elderkins. Fowey River went into liquidation in April 2021, having defaulted on the loan.

The Secretary of State for Business and Trade accepted disqualification undertakings from the pair and their bans began on Wednesday 1 May. The ban means the Elderkins are now banned from being involved in promoting, forming or running a company without the court’s permission.