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A West Yorkshire scaffolding contractor has been ordered to repay over £100,000 after fraudulently claiming government Covid-19 support loans, in a case that highlights ongoing enforcement action against construction industry fraud.
Mark Degnan, 56, director of MBL Scaffolding Services Ltd based in Pontefract, was told by Leeds Crown Court he must return nearly £60,000 within six months or face imprisonment, having already repaid around £55,000.
The case centres on Degnan’s fraudulent applications for two £50,000 Bounce Back Loans in 2020, which he secured by inflating his company’s annual turnover. Under the scheme rules, businesses were limited to a single loan worth up to 25 per cent of their annual revenue, capped at £50,000.
Degnan received a two-year suspended sentence earlier this year and has been disqualified from acting as a company director for five years—a ban that will prevent him from holding senior positions in any scaffolding or construction firm during this period.
He must also complete 50 hours of community service.
The Bounce Back Loan Scheme, launched in May 2020, provided crucial lifelines to thousands of construction and scaffolding businesses during the pandemic lockdowns. However, the case demonstrates how some operators exploited emergency support measures designed to protect legitimate firms and their workforces.
Alexander Grierson from the Insolvency Service’s Asset Recovery team said the confiscation order sends a clear message to the industry. “Mark Degnan cynically exploited a scheme designed to help small businesses during the pandemic,” he stated.
The enforcement action forms part of wider government efforts to recover fraudulently claimed pandemic support funds across the construction sector, with authorities continuing to investigate suspicious applications made during 2020-2021.
