A director from Oldham who exploited a Covid Bounce Back Loan for £20,000 will face no further consequences than a ban and was only required to pay £1 in unpaid fees, documents reveal.

Shafiqur Rahman established the children's sports coaching company, Aspire Sports Coaching & Partners Limited, in January 2018.

He also sits as a chair and trustee of his charity, Oldham Inspiring Youth, which was set up in August 2020.

However, the Insolvency Service disqualified Mr Rahman for more than a decade this month after it found "significant fraud" had taken place through the Covid Bounce Back Loan (BBL) scheme.

Mr Rahman applied for a £25,000 loan when the company would have only been entitled to £625.

READ MORE: Oldham director exploited £20,000 Covid loan 'for car'

Case notes reveal Mr Rahman "knew or ought to have known" that the turnover information he provided for the loan application was false.

It was further disputed as to where £20,000 of the loan went as bank statements show the money was paid from Aspire's bank account to a third party with the payment reference 'car'.

The Insolvency Service concluded the £20,000 loan "does not appear to have been for the economic benefit of Aspire" and disqualified Mr Rahman from acting as a company director for 11 years.

However, it appears there will be no further action taken to recover the funds.

Wilson Field liquidators noted £20,000 had been transferred to a third party but said no creditors were willing to fund the cost of an investigation.

They wrote: "The proposed liquidator has confirmed no further action to be taken and to close the case."

Separately to the BBL, a further £129.13 in overdrawn bank fees were also dropped by the liquidator.

It said: "Given that any funds would be used to defray the costs of the liquidation with no benefit to creditors, the joint liquidators did not pursue these funds further."

Mr Rahman did, however, transfer £1 to the liquidators to cover unpaid share capital.

The Insolvency Service told The Oldham Times that it does pursue enforcement where there is evidence of criminal wrongdoing or misconduct.

Breaching the terms of disqualification is a criminal offence punishable by a fine and/or up to two years in prison.

It also said at the end of September 2022, the Insolvency Service had secured 343 disqualification orders, 116 bankruptcy restriction orders and a two-year jail term, all connected to the abuse of Covid support.

Rob Clarke, chief investigator at the Insolvency Service added: “Bounce back loans were introduced to help businesses through the pandemic, offering financial support to protect jobs and keep companies running.

“Bans serve as a warning to others that the Insolvency Service will not hesitate in taking appropriate action against those who have abused Covid-19 financial support from Government schemes.”

Aspire Sports Coaching and Partners Limited was dissolved on October 5.

Mr Rahman and Wilson Field have been approached for comment.