Blackpool estate agent disqualified as director over £50,000 Bounce Back Loan says it was "a simple mistake"

Stephen John Tew, 49, director of TC Estates Limited, trading as Stephen Tew Estate Agents, has been struck off for 11 years following an Insolvency Service investigation.

But Mr Tew, of Islay Close, Moorview Park, Blackpool, said his actions were a “simple clerical error”, he has not done anything deliberately wrong, and that clients shouldn’t worry as the business is operating as usual.

The issue

Public records show that Mr Tew caused TC Estates Limited to make false representations in an application for a Government Bounce Back Loan (BBL) of £50,000 by declaring that no other BBL applications had been made on behalf of TC, when TC had already applied for and received a BBL of £40,000 from a different lender. The Service also said Mr Tew also failed to ensure that at least £16,379 of the BBL funds were used for the economic benefit of the company.

The BBL scheme was introduced by the Government during the coronavirus pandemic in a bid to help small and medium-sized businesses to borrow between £2,000 and up to 25 per cent of their turnover. The maximum loan available was £50,000.

The Insolvency Service said that Mr Tew submitted an application to Bank A requesting a BBL of £40,000, which was paid into TC’s bank account, held with Bank A on May 6, 2020. Mr Tew made a second BBL application on behalf of TC requesting a loan of £50,000 from a Bank B, which were paid into TC’s bank account held with them on June 15.

The application form submitted to the second lender was completed by Mr Tew and included a declaration confirming that this was the only BBL application made for this business.

Records show that between June 17 2020 and June 25, 2020, transactions totalling at least £16,379 were made from TC’s Bank B account that did not provide economic benefit to the company.

What does Stephen Tew say?

Mr Tew, who had never before taken out business loans, said he enquired due to the unprecedented economic environment created by the coronavirus pandemic, and made a "simple clerical error".

At that time, he was running two branches of the business - one in Blackpool and the other in Prescot - and ran them separately and therefore had different bank accounts with two separate banks. He applied to both banks, hoping that if one were declined, the other would be approved.

He said there was "definitely nothing deliberate" in the applications, and insists he was open and honest when speaking with an advisor.

Mr Tew said that all of the money was spent on both businesses and keeping staff on - it has not been used personally. The Prescot branch has since closed so that the company can concentrate on there main Blackpool Branch.

He is also keen to point out that he has not been banned from working as an estate agent, and that it's business as usual for clients. The estate agency is running as normal with a new director at the helm.