PRESS RELEASE : Coventry artist Darren Baker hit with 7-year ban for abusing Bounce Back Loan [January 2023]

The press release issued by HM Treasury on 11 January 2023.

Darren Richard Baker, based in Coventry, has been disqualified as a director for 7 years after he wrongfully took out a £45,000 Bounce Back Loan on behalf of his charity in October 2020. He then secured a further £5,000 top-up for the charity in March 2021.

Baker was director and chair of The Leanne Baker Trust, a charity set up to campaign to support people struggling with their mental health.

The charity was established in 2014 but went into liquidation in September 2021.

Although charities were eligible to apply for financial support during the pandemic through the Bounce Back Loan scheme, The Leanne Baker Trust had no overheads or employees.

Baker stated that the charity’s turnover was £200,000 in order to secure the Bounce Back Loan, yet its annual accounts showed a maximum turnover of £26,029 for the calendar year 2019. Under the rules of the scheme, the charity was therefore not eligible for the funding.

Having received the funding, Baker did not use the money to support the charity, but instead used over £25,000 to pay off personal legal fees, and a further £13,000 for personal use.

The Liquidator reported the Bounce Back Loan misuse to the Insolvency Service when the charity went into liquidation, and has subsequently recovered the full amount.

The Secretary of State for Business, Energy and Industrial Strategy accepted a disqualification undertaking from Darren Baker, after he accepted that he caused The Leanne Baker Trust to obtain a Bounce Back Loan that it was not entitled to. His ban is effective from 15 December 2022 and lasts for 7 years.

The disqualification undertaking prevents him from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.

Rob Clarke, Chief Investigator at the Insolvency Service, said:

Bounce Back Loans were offered to businesses that had been negatively impacted by the pandemic, with the money purely to be utilised for the economic benefit of those companies; safeguarding jobs and sustaining entrepreneurial activity. That clearly was not the case in this instance where the funds have been claimed by a charitable enterprise, with negligible turnover, and no employees.

Despite the humanitarian purpose of the trust as established, Darren Baker took advantage of the support available during this difficult time for his own personal gain. His disqualification should serve as a warning to others that the Insolvency Service will take action whenever a director’s dishonesty threatens loss to the public purse, the consequence being a lengthy exclusion from trading with the benefit of limited liability.