NEWS STORY : Gary Wright Receives Suspended Sentence for Fraudulent £25,000 Covid Loan Application

STORY

Gary Wright, a 46-year-old former pub landlord from St Helens, has been handed a two-year suspended prison sentence after fraudulently securing a £25,000 Bounce Back Loan during the Covid-19 pandemic. Wright failed to disclose his bankruptcy status when applying for the government-backed loan intended to support struggling businesses.

Wright previously operated the Talbot Ale House on Duke Street, which ceased trading in September 2019. He was declared bankrupt in February 2020 due to debts owed to a major utility company. Despite this, in June 2020, he applied for a £25,000 Bounce Back Loan, claiming the pub had an annual turnover of £400,000, without informing the bank of his bankruptcy.

At Liverpool Crown Court on 24 April 2025, Wright was sentenced to two years in prison, suspended for two years. He was also ordered to complete 150 hours of unpaid work and pay £1,500 in costs. The loan was repaid in full earlier this year.

David Snasdell, Chief Investigator at the Insolvency Service, commented:

“Gary Wright incurred significant debts after his business failed and he was ultimately declared bankrupt. He then attempted to take advantage of a scheme which was backed by taxpayers and designed to support viable small businesses through the pandemic. Bankrupts are legally required to declare their status when applying for loans or credit. Wright clearly failed to do this which is why he now has a criminal conviction.”

Under UK law, individuals who are undischarged bankrupts must disclose their status when applying for credit over £500. Wright remains an undischarged bankrupt. The Talbot Ale House continues to operate under new management.