Construction Boss Faces Six-Year Ban After £150,000 Covid Loan Fraud

A construction firm director has been disqualified from acting as a company director for six years after fraudulently obtaining £150,000 in Covid Bounce Back Loans. Adebanjo Adebayo Talabi, 42, was sentenced at Southwark Crown Court after admitting to three counts of fraud by false representation. He received a suspended prison sentence and was ordered to complete unpaid work as part of his punishment.

Key Takeaways

Adebanjo Adebayo Talabi, director of Bebo Construction Ltd, fraudulently claimed three Covid Bounce Back Loans totalling £150,000.
He exaggerated the company’s turnover to secure the maximum loan amount on each occasion.
Talabi has been banned from being a company director for six years and received a suspended prison sentence.
The Insolvency Service is continuing to pursue individuals who exploited the government’s pandemic support schemes.

Fraudulent Loan Applications

Adebanjo Adebayo Talabi, formerly the director of London-based Bebo Construction Ltd, applied for three separate Covid Bounce Back Loans between August and November 2020. The loans, each for the maximum available amount of £50,000, totalled £150,000. An investigation by the Insolvency Service (IS) revealed that Bebo Construction Ltd would have only been entitled to a single loan of approximately £1,300 based on its actual turnover.

Exaggerated Turnover and Misrepresentation

During the application process, Talabi significantly inflated the company’s turnover, stating it was between £200,000 and £220,000 to justify the loan amounts. For the second and third loan applications, he falsely claimed they were the first and only applications made by the company. Evidence gathered by the IS indicated that the loan funds were transferred to personal accounts rather than being used for the economic benefit of the company, a key condition of the Bounce Back Loan scheme.

Sentencing and Consequences

Talabi pleaded guilty to three counts of fraud by false representation and was sentenced on February 24, 2026. He received a two-year prison sentence, suspended for two years, and was ordered to undertake 200 hours of unpaid work. In addition to these penalties, he has been disqualified from acting as a company director for a period of six years.

David Snasdell, chief investigator at the Insolvency Service, commented on the sentence, stating it imposes significant long-term restrictions on Talabi. He also highlighted the IS’s commitment to prosecuting those who exploited the pandemic relief schemes. The IS will not be pursuing action under the Proceeds of Crime Act, as Talabi has already begun repaying the money owed.