British businessman Haralambos Ioannou will get 22 months in jail for misusing Covid aid loans on crypto buying and selling and playing.
A British businessman, Haralambos Ioannou, has been sentenced to virtually two years in jail.
The 49-year-old, from Cow Lane, Edlesborough, Buckinghamshire, reportedly used the cash to gamble and put money into crypto, as an alternative of supporting his glazing enterprise.
The Insolvency Service revealed that Ioannou utilized for 2 separate £50,000 Bounce Again loans in the course of the pandemic. The loans, which had been designed to assist small companies survive lockdown restrictions, had been restricted to 1 per firm. Regardless of this rule, Ioannou submitted a second software utilizing inflated figures for his firm’s 2019 turnover.
Inside eight days between June and July 2020, each functions had been accepted, and his firm accounts obtained a complete of £100,000.
How Haralambos Ioannou Spent the Funds
In accordance with the Insolvency Service, Ioannou used the primary £50,000 mortgage effectively and saved his glass-fitting agency afloat in the course of the pandemic. Nonetheless, the second mortgage advised a distinct story.
Haralambos Ioannou of Cow Lane, Edlesborough, Dunstable, Will get a 22-Month Suspended Jail Sentence and Is Ordered to do 150 Hours of Unpaid Work and Repay £40k for Blagging a Second Bounce Again Mortgage and Residing the Excessive Life with the Moneyhttps://t.co/Q5t0PLIBrm
— MrBounceBack.com (@Bounce_BackLoan) October 9, 2025
Data confirmed that Ioannou transferred practically £20,000 to his private account and spent £25,000 on playing websites. He additionally used £8,000 for crypto investments and withdrew about £6,000 from ATMs earlier than transferring £16,000 to his ex-wife.
Southwark Crown Courtroom concluded that the second mortgage was obtained and spent fraudulently.
Ioannou was sentenced to 22 months in jail, suspended underneath situations and ordered to finish 150 hours of unpaid labour.
He should additionally repay £40,000 in restitution. Moreover, he obtained a five-year ban from serving as an organization director.
Insolvency Service Condemns Abuse of Covid Reduction
David Snasdell, Chief Investigator on the Insolvency Service, strongly criticised Ioannou’s misuse of funds.
He stated the businessman “had no enterprise spending on issues that had nothing to do along with his firm’s operations, like playing, crypto investments and funds to his accomplice.”
Snasdell harassed that the Bounce Again Mortgage scheme was meant as a lifeline for companies struggling in the course of the COVID-19 lockdowns. Misusing these funds not solely broke the legislation but additionally undermined public belief in this system.
“We stay dedicated to taking agency motion in opposition to anybody who exploited pandemic assist for private achieve,” Snasdell stated.
The Wider Crackdown on Covid Mortgage Fraud
The Insolvency Service reminded companies that each one Bounce Again loans should be repaid inside six to 10 years.
Repayments had been meant to begin twelve months after receiving the mortgage, no matter firm standing.
The company additionally confirmed that investigations would proceed even when an organization has been dissolved. Any try and keep away from compensation by dissolution or faking monetary info may lead to harsh penalties.
Authorities famous that a number of different UK companies had already been wound up for submitting faux paperwork to entry authorities support.
In two separate instances, firms obtained a mixed £230,000 in loans by these varieties of faux functions. Investigations later uncovered 41 extra native authorities that obtained related claims.
Covid Mortgage Fraud and the Crypto Connection
Ioannou’s case stood out due to his use of presidency funds to put money into crypto in the course of the top of market hype in 2020. That 12 months, Bitcoin doubled in value whereas Ethereum quadrupled.
This drew in lots of inexperienced buyers hoping to revenue shortly.
Authorities stated Ioannou transferred roughly £8,000 of his mortgage cash into “crypto funding” accounts. Nonetheless, they didn’t disclose which tokens or platforms had been concerned.
Many related fraud instances in the course of the COVID interval included people who diverted loans to speculative crypto belongings, playing or luxurious purchases.