The former boss of a takeaway in Stretford spent a £20,000 bounce back loan intended to aid businesses through coronavirus on a car and his family abroad, a court has heard.

Abdulrazag Zagroba, the former boss of Amigo Pizza, became the first fraudster to be sentenced for abuse of this scheme at a hearing at Manchester Crown Court on June 24.

According to the Insolvency Service, who brought the case against Zagroba, the 54-year-old incorporated the company in January 2020, then applied to dissolve the takeaway in June of the same year.

But less than two weeks after he signed this application, he also applied for a bounce back loan of £20,000.

Zagroba, of Rosslyn Road in Firswood, did not tell the bank he applied to dissolve the company and signed a declaration to say the takeaway was able to make the repayments.

The terms of the bounce back loan were clear it was intended for business purposes and not for personal use.

READ MORE: Takeaway boss is banned for £50k abuse of coronavirus support schemes.

In June of the following year, when it was time to make the repayments, Amigo Pizza was already dissolved.

Zagroba was interviewed by the Insolvency Service and admitted he had no intention to use the bounce back loan for business purposes.

He spent £6,000 on a car and insurance, then gave the remaining £14,000 to a friend to take to his family abroad.

After admitting fraud by false representation last month, Zagroba was sentenced to two years in prison by Recorder Abigail Hudson at Manchester Crown Court on June 24.

Julie Barnes, the chief investigator at the Insolvency Service, said: "The loans were designed to support viable businesses during the pandemic. Abdulrazag Zagroba, however, cynically sought to exploit the loan scheme and by dissolving his company, he intended to frustrate any attempt by the lender from taking action to recover the outstanding loan.

"This sentence should serve as a warning to others who engaged in this behaviour, and they should come clean and repay the money before it is too late."