Fraudulent Scheme Uncovered
Murat Dogantekin, a taxi driver from Devon, has been ordered to repay over £60,000 following a court ruling that found he had fraudulently acquired funds through the Bounce Back Loan scheme. By significantly inflating the turnover of his taxi business by more than £350,000, he was able to secure £100,000 in loans that were intended to assist small and medium-sized enterprises during the Covid-19 pandemic. His actions were revealed during an investigation by the Insolvency Service.
The confiscation order of £63,790 was imposed at Exeter Crown Court on 8 September, reflecting the value of assets deemed available to Dogantekin. At the age of 52, he has been given a three-month deadline to repay the amount. Should he fail to comply, he risks an additional five years in prison, while still being obligated to repay the full amount.
Misuse of Covid Relief Funds
In February 2025, Dogantekin was sentenced to two years and seven months in prison for his fraudulent activities. He had submitted applications for two Bounce Back Loans of £50,000 each, claiming annual turnovers of £200,000 and £205,000 for two distinct taxi businesses, which were, in fact, misrepresentations. His applications lacked any substantiating evidence, and investigations revealed that the second business was merely named after one of his clients, an attempt to falsely qualify for additional funding.
In reality, Dogantekin had reported earnings of just £16,500 for the tax year ending April 2020, indicating that he had inflated his turnover by an astonishing £388,500. Had he been truthful about his financial status, he would have only been eligible for a loan of approximately £4,125, thereby receiving an unwarranted sum of £95,875.
Asset Recovery Actions
Further investigations by the Insolvency Service revealed that Dogantekin used £48,000 of the Bounce Back Loan funds to purchase a two-bedroom flat in Turkey. In addition to this, he acquired a 2017 Peugeot for £2,840 and spent another £800 on a pizza oven. Despite these expenditures, no repayments were made towards the loans before Dogantekin was declared bankrupt in November 2021.
Communication attempts by the Official Receiver were met with disregard; Dogantekin failed to respond to 11 requests for documentation over a six-month period and did not attend a scheduled interview under caution, further complicating the investigation.
Commitment to Combatting Fraud
Alexander Grierson, the Head of Asset Recovery at the Insolvency Service, emphasised the importance of the Bounce Back Loan scheme, which was designed to support genuine businesses struggling due to the pandemic. He reiterated that Dogantekin’s exploitation of the scheme was unacceptable and stated that the Insolvency Service remains committed to pursuing those who engage in fraudulent behaviour. The agency will utilise all available powers to recover funds obtained through such criminal acts.
For further information regarding directors’ obligations and to report any financial misconduct, resources are available through the Insolvency Service’s Director Information Hub. This case serves as a reminder of the importance of integrity in financial reporting and the consequences of fraudulent activities.