East London Woman Ordered to Repay £107,000 After Shocking Covid Loan Scheme Abuse

Ruxanda Guja, a decorator from East London, faces a 13-year director ban and must repay over £107,000 for abusing Covid loan schemes.

East London Woman Ordered to Repay £107,000 After Shocking Covid Loan Scheme Abuse
East London Woman Ordered to Repay £107,000 After Shocking Covid Loan Scheme Abuse

East London: So, there’s this woman named Ruxanda Guja who got herself into a bit of trouble. She snagged £145,000 in Covid Bounce Back loans but now has to pay it all back and can’t be a company director for 13 years.

Ruxanda, who ran a decorating business called Roxy Contracts, claimed way more than she was supposed to. She said her company was doing all this specialized construction work, but it turns out she was just stretching the truth.

In 2020, she hit up three different banks for loans. She got one for £45,000 and two for the max amount of £50,000 each. But here’s the kicker: she inflated her company’s turnover to get those loans.

The High Court wasn’t having any of it. They ordered her to pay back £107,038 plus costs. That’s a hefty sum! And on top of that, she’s banned from being a director starting on Christmas Eve.

Dave Magrath from the Insolvency Service made it clear that the rules were simple. You could only get one loan based on your actual turnover. Ruxanda clearly broke those rules and now has to face the music.

She first applied for a £45,000 loan, claiming her company made £500,000. Just a week later, she asked for another £50,000, this time saying her turnover was £350,000. Then in October, she got another £50,000 loan, claiming her turnover was £250,000. Talk about pushing your luck!

Now, she’s got to repay those loans with interest, and her company, Roxy Contracts, was liquidated back in June 2021. It’s a tough lesson learned for Ruxanda.

Image Credits and Reference: https://uk.yahoo.com/news/east-london-woman-ordered-repay-181212436.html

Mangesh Wakchaure is a veteran writer working at London Lens, focusing on foreign news coverage on a range of topics.