A Yorkshire scaffolding boss who fraudulently obtained £100,000 in Covid loan funds has been ordered to repay the money in full, with interest of more than £15,000.
Mark Degnan repaid £55,608 before appearing at Leeds Crown Court on Monday 15 September where he was ordered to repay the remaining £59,578 within six months. If Degnan fails to pay back the money, he will face a year in prison.
This comes on top of Degnan receiving a two-year suspended sentence in January this year after inflating his turnover to secure the two £50,000 Bounce Back Loans in 2020 for MBL Scaffolding Services Ltd.
Alexander Grierson, head of asset recovery at the Insolvency Service, said: “Mark Degnan cynically exploited a scheme designed to help small businesses during the pandemic by exaggerating his company’s turnover and obtaining two loans when companies were only allowed one.
“Securing this confiscation order is important as it means Degnan must pay all the money back plus interest or go to jail. The Insolvency Service remains committed to pursuing fraudsters who abused the Bounce Back Loan Scheme and will continue to use all available powers to ensure criminals do not financially benefit from their illegal activities.”
Degnan claimed in both fraudulent applications to separate banks in May and July 2020 that MBL Scaffolding Services Ltd’s turnover was £500,000. These applications were made despite dormant company accounts being filed for 2019.
Investigators found that the company’s turnover in 2019 was closer to £162,000, meaning that it was still ineligible for the full amount. Under the rules of the scheme, businesses could borrow up to a quarter of their annual turnover, with a maximum loan of £50,000.
Degnan was sentenced to two years in prison, suspended for two years, at Leeds Crown Court in January 2025. He was also disqualified as a company director for five years and ordered to complete 50 hours of unpaid work.
