business coronavirus grants - was this a fraudulent claim?

[Mzf961]

I am a shareholder (not director) in a limited company that holds a business premises that is rented out. I have found out that my co-shareholders who are both directors, who's business were tenants in part of the building applied for and received business coronavirus grant of 10000 for the business. Is this fraudulent? The business has no other function other than being a holding company for the office and acting as landlord. Rental income was less than 15k.
I was unaware of this at the time and obviously didn't see any of the money.

[R0b]

There is a legal definition of fraud, which is where as person dishonestly makes a false representation with the intention to make a gain and/or cause a loss to another. Without more information, none us can say whether or not fraud may have been committed. Have you questioned the directors about this and if so, what was the response?

[Mzf961]

Thanks. It’s part of ongoing issues I’ve been having regarding concerns regarding possible misappropriation of money and I’ve come across this on a tax return. Ive asked for bank statements and accounts but been stonewalled. I’ve got lawyers involved having submitted a request under s.476.
Question is, is how to deal with this?

[echat11]

I'm not sure why you are getting involved in investigating this. If the responsibility lays with the directors, you have mechanisms to report the 'alleged' fraud. Then it will be up to the directors to 'justify' the need of the grant.

Posted for information - https://www.accaglobal.com/uk/en/tec...lough%20scheme.

[atticus]

Can I suggest that the OP details his issues, so that we can see the whole picture. He has made a number of posts chipping away at the edges.

EDIT - I see the OP has "got lawyers involved".

[echat11]

Can I suggest that the OP details his issues, so that we can see the whole picture. He has made a number of posts chipping away at the edges.

EDIT - I see the OP has "got lawyers involved".

I'm not sure lawyers should be involved unless he feels the Directors has breached their 'fiduciary duties'.

[Mzf961]

Can I suggest that the OP details his issues, so that we can see the whole picture. He has made a number of posts chipping away at the edges.

EDIT - I see the OP has "got lawyers involved".

Thank you. As explained already, three of us bought a commercial building to be rented out and registered under a newly formed company to act as a holding company for property only. It does not conduct any business. My two 'partners (one being family member) were recorded as directors whilst I remained as shareholder.
Sometime last year I became concerned about sums not adding up in respect of rental income and asked to be recorded as director and be provided with bank statements. They refused, stating that this would not happen as I would not like what I saw they had been doing and have since stonewalled me and refused to engage. They said as a shareholder (33%) I am not entitled to any records or statements etc.
I am now aware that they have been using money to pay a personal loan secured against the building, comingling funds with their failing business and on checking companies house info, saw reference to them having received a 10k covid grant. I have served a 476 on them (served correctly and within relevant time) which they have ignored.
I have engaged a solicitor and am in the process of sending the first letter before action. My question in this thread is whether in these circumstances they could / should have applied for a covid grant or have they committed fraud? I have obviously been a bit naive and over trusting, especially given one of the pair being a close relative, but I am concerned about the ramifications in respect of what they have been up to and what I should do. I suspect I am going to have to fight to force them to open up the records so i can assess what they have been up to and what I'm not 'going to like'.

[Mccmat95]

While i dont know the answer to your question, and dont have legal knowledge, i think for people who do have that knowlege, you might need to clarify a little bit more - it sounds like the commercial building they own had tenants - did they receive reduced rent or were they impacted in any way by lockdown/restrictions in terms of tenants / income etc - i think thats the part you will need to clarify - what makes you question their applying for it as fraudulent.

[atticus]

I wonder if the OP has asked his fellow shareholders about this.