Glasgow property manager sentenced to 12 years disqualification
Brendan Michael Gaughan, 40, from Glasgow, has been disqualified as a director for 12 years, after he used his companies to take out rebound loans totaling £135,000 which the companies were ineligible for.
Gaughan was a director of three separate property management companies, Gaughan Group Ltd, Gaughan Property Ltd and Rentl Property Ltd. They were only incorporated in February 2020 and did not carry out any activity before April 2020.
As a result, they were not eligible for funds through the Bounce Back Loan (BBL) program, which was only available to businesses that were in operation on March 1, 2020.
However, in May 2020, Gaughan Group received a BBL of £50,000, Gaughan Property also received a BBL of £50,000 and Rentl Property Ltd received a BBL of £35,000.
Gaughan transferred all the funds to one account and then used the money to buy a property worth nearly £160,000 in August 2020. He then sold the property in March 2021 for just over £140 £000, and on the same day transferred £100,000 of the proceeds to his personal account.
All three companies went into liquidation on October 11, 2021, triggering an investigation by the Insolvency Service.
The Secretary of State accepted commitments to disqualify Brendan Michael Gaughan, after he did not dispute that any of his companies had been eligible for the bounce-back loans. It was banned for 12 years, starting October 27, 2022.
Forfeiture covenants prevent him from getting involved directly or indirectly in the promotion, incorporation or management of a company, without judicial authorization.
Steven McGinty, Head of Investigations at the Insolvency Service, said:
Rebound loans have been made available to commercial companies affected by the pandemic. Brendan Gaughan should have known his businesses were not eligible for the loans, but he took them anyway and used the funds for personal gain.
We will not hesitate to take action against administrators who have abused Covid-19 financial support like this.
Notes to Editors
Brendan Michael Gaughan is from Glasgow and his date of birth is November 1982.
Gaughan Group Ltd – SC655799
Gaughan Property Ltd – SC655896
Rentl Property Ltd – SC655897
Forfeiture undertakings are the administrative equivalent of a forfeiture order but do not involve court proceedings.
Persons subject to a disqualification order are bound by a range of other restrictions.
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