An artist has been banned from acting as a director of a company for seven years after fraudulently claiming loans for charity.
Darren Baker, an artist known for painting the late Queen’s portrait in 2011, illegally claimed £45,000 from a Bounce Back Loan in October 2020 on behalf of the Leanne Baker Trust, a charity set up in memory of his late sister.
He then secured a further £5,000 for the charity in March 2021 through the same scheme.
Although charities were eligible to apply for financial support via the Bounce Back Loan scheme during the pandemic, the Leanne Baker Trust was not eligible.
It had no overheads or employees and Baker stated the charity’s turnover was £200,000 in order to secure the loan, yet its financial accounts showed a maximum turnover of just over £26,000 for 2019.
After receiving the funding, Baker did not use the money to support the charity but used over £25,000 to pay off personal legal fees and a further £13,000 for personal use.
‘Took advantage of the support available’
The Leanne Baker Trust went into liquidation in 2021 and the Liquidator reported the loan misuse to the Insolvency Service shortly afterward. They have since recovered the full amount.
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.”
Civil Society News was unable to contact Baker for comment as the email address and website for the former charity is no longer active.
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