Manchester Crown Court Jails Matloob Hussain as Disqualified Director Misuses Covid Loans and Violates Business Laws in Greater Manchester

A 49-year-old businessman from Greater Manchester has been sent to prison after admitting to fraudulently securing Covid Bounce Back loans and continuing to act as a company director despite being legally banned from doing so.

How the Fraud Unfolded

Matloob Hussain, formerly linked to businesses including a Manchester-based clothing and footwear wholesaler and an online retail company selling items such as confectionery, took advantage of government-backed Covid support schemes intended to help struggling businesses during the pandemic.

During 2020, Hussain submitted multiple applications for Bounce Back Loans across his companies.

Each business was only eligible for a single loan, yet he successfully obtained additional funding by submitting further applications.

In one instance, he inflated a company’s turnover to increase the loan amount.

He also applied for a loan tied to a sole trader business, again providing misleading financial details and false assurances about how the funds would be used.

Altogether, Hussain secured around £150,000 through these fraudulent applications.

Acting While Disqualified

Compounding the fraud, Hussain continued to operate as a company director even after being disqualified.

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Back in 2021, he had already signed a 10-year disqualification undertaking following an earlier investigation by authorities.

Despite this legal restriction, he remained actively involved in company management, directly violating the terms of his disqualification.

Court Outcome and Sentencing

Following a court hearing at Manchester Crown Court on 25 March 2026, Hussain admitted to three counts of fraud and one count of acting as a director while disqualified.

He was subsequently sentenced to two years and four months in prison, reflecting the seriousness of abusing public funds during a national crisis and ignoring legal restrictions already placed upon him.

Impact and Consequences

The case highlights how misuse of Covid relief schemes can directly affect public finances and erode trust in emergency support systems.

Funds intended to help legitimate businesses survive difficult economic conditions were instead diverted for personal gain.

Authorities also emphasized the wider damage caused by such actions, including undermining regulatory systems designed to ensure fairness and accountability in business operations.

What’s Next?

The Insolvency Service is now working to recover the money obtained through the fraudulent applications using legal recovery powers under the Proceeds of Crime Act.

This comes in addition to approximately £27,000 that has already been recovered.

Investigations like this signal ongoing efforts by authorities to track down and reclaim misused public funds, even years after the original offences took place.

Summary

A Manchester businessman has been jailed after fraudulently obtaining multiple Covid Bounce Back loans and breaching a director disqualification.

He falsely inflated business figures, secured excessive funding, and continued acting as a company director despite being legally barred.

The court sentenced him to over two years in prison, and recovery efforts for the misused funds are ongoing.

Bulleted Takeaways

• Matloob Hussain fraudulently obtained multiple Covid Bounce Back loans worth about £150,000
• He applied for loans beyond what his businesses were entitled to by inflating financial details
• Hussain continued acting as a company director despite being disqualified for 10 years
• He admitted to three fraud charges and one breach of disqualification rules
• He was sentenced to 28 months in prison at Manchester Crown Court
• Authorities are working to recover the misused funds under the Proceeds of Crime Act
• About £27,000 has already been recovered as part of the investigation