Last reviewed: 30 June 2026
TL;DR: A Wolverhampton director, Sohail Cheema, has been sentenced after fraudulently claiming £30,000 in two separate Covid Bounce Back Loans, despite his business not actually trading. He received a suspended prison sentence, a 10-year director disqualification, and the Insolvency Service is pursuing recovery of the funds.
Sohail Cheema, a 35-year-old company director from Richmond Road, Wolverhampton, has been sentenced for fraud and money laundering after the Insolvency Service found he had fraudulently obtained £30,000 through two separate Bounce Back Loan applications during the pandemic.
What Cheema did
Cheema falsely declared that his company, Sohail Cheema Limited, had a turnover of £60,000 when applying to two different banks for £15,000 Bounce Back Loans in 2020. The company, set up to allow him to gain agency employment as a self-employed bus driver, was not actually trading. He transferred the full proceeds of both loans out of his business accounts on the same day they were received, moving the money into personal accounts and an account belonging to his wife. The funds later formed part of a £90,000 payment to a third party in August 2021.
The sentence
Cheema was sentenced at Wolverhampton Crown Court on 29 June 2026 to two years in prison, suspended for two years. He was disqualified as a company director for 10 years, ordered to complete 150 hours of unpaid work, and must complete 20 days of rehabilitation activity. The Insolvency Service is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002.
Why this matters beyond one case
Bounce Back Loans were designed as taxpayer-funded support for genuine businesses struggling through the pandemic, with a maximum loan of £50,000 repayable over six to 10 years. The Insolvency Service has continued pursuing director disqualifications and prosecutions for Bounce Back Loan fraud well after the scheme closed, and can investigate a company even after it has been dissolved if loan terms were not met. Businesses and individuals who used loan funds outside the terms of the scheme, including for personal spending, remain at risk of investigation regardless of how long ago the loan was taken out.
KEY FACTS
- Amount fraudulently obtained: £30,000 across two Bounce Back Loans
- Sentence: two years in prison, suspended for two years
- Director disqualification: 10 years
- Also ordered: 150 hours unpaid work, 20 days rehabilitation activity
- Recovery sought under the Proceeds of Crime Act 2002
This article is for general information only and does not constitute legal advice. Details are based on the Insolvency Service's published statement on this case. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority.
Frequently asked questions
What did Sohail Cheema do?
He falsely declared his company's turnover to obtain two separate £15,000 Bounce Back Loans, despite the business not actually trading, then transferred the funds to personal accounts.
What sentence did he receive?
Two years in prison, suspended for two years, plus a 10-year director disqualification, 150 hours of unpaid work, and 20 days of rehabilitation activity.
Will the money be recovered?
The Insolvency Service has stated it is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002.
Can the Insolvency Service still investigate old Bounce Back Loans?
Yes. The Insolvency Service can investigate Bounce Back Loan misuse even years after a loan was taken out, including where a company has since been dissolved.
Sources
Insolvency Service / GOV.UK, Wolverhampton fraudster sentenced after illegally claiming £30,000 in Covid loans
