'Rogue director' Jason Meads is banned from running a business for 10 years after falsely obtaining £37,000 of bounce back loans for his online retail business, Hodl Clothing

Chris Broom
By Chris Broom
Published 21st Nov 2022, 17:27 BST
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THE director of a supposed Southsea-based online clothing business has been banned from running companies for a decade after he exaggerated the company’s turnover to receive £37,500 from a government scheme designed to help businesses survive through the pandemic.

Jason Meads, from Southsea, was the sole director of Hodl Clothing Limited, who claimed two of the government-backed bounce back loans. The company was incorporated in April 2018 and operated as an online clothing retailer.

However, the company went into liquidation in October 2021 before the Insolvency Service uncovered Meads had received government loans Hodl wasn’t entitled to.

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Investigators discovered that Hodl Clothing Limited successfully applied for two bounce back loans and received £37,500 after Meads, 33, falsely claimed turnover was £150,000 when it was in fact zero. Further enquiries uncovered that Meads transferred more than £36,000 from the bounce back loan to a personal account but could not provide any evidence that the funds were used for the economic benefit of Hodl.

The Twitter account of Southsea-based Hodl Clothing. The website link no longer works.The Twitter account of Southsea-based Hodl Clothing. The website link no longer works.
The Twitter account of Southsea-based Hodl Clothing. The website link no longer works.

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Tom Phillips, assistant director at the Insolvency Service, said: ‘Bounce back loans were offered to financially support viable businesses through the pandemic. The director of this company abused the bounce back loans support scheme. Jason Meads used vastly exaggerated turnover figures to obtain more funding than his company would otherwise have been entitled to. Thanks to the work of our diligent investigators, we have removed this rogue director from the corporate arena. Jason Meads has received a top-bracket disqualification, which should serve as a stark warning to other directors that there are serious consequences to those who have abused bounce back loans.’

Bounce back loans were part of a raft of measures introduced during 2020 to support businesses affected by Covid-19, offering loans, grants and tax allowances. The loan scheme helped small and medium-sized businesses to borrow between £2,000 and £50,000 at a low interest rate, guaranteed by the government.

As well as being banned from running a business for 10 years, Meads faces other restrictions including that he cannot be a charity’s trustee, school governor, or work for a police authority. Breaking the order is a criminal offence and could result in a fine and/or a prison sentence of up to two years. They may also be disqualified for a further period.