British Businessman Convicted After Fraudulent Loans Helped Fund Lanzarote Property Purchase
A British businessman has been convicted in the UK after fraudulently obtaining loans that were later used to help finance the purchase of a property in Puerto Calero, Lanzarote. The case has attracted attention both in the UK and the Canary Islands because one of the loans was a government-backed Covid-19 support loan intended to help struggling businesses during the pandemic.
According to the UK Insolvency Service, Alex Hope secured a £25,000 Bounce Back Loan in 2020 by significantly overstating his company’s turnover. Investigators say the company did not qualify for the amount received, and the funding was obtained through false declarations.
A year later, Hope and business associate Liam Jones obtained a further £56,000 loan from a private lender while acting as directors of their CBD business. Prosecutors said the pair failed to disclose that they were already involved in substantial legal proceedings when applying for the finance, information that could have affected the lender’s decision.
Money Used Towards Lanzarote Home
Investigators found that money from both loans was transferred through several bank accounts before being sent overseas. The funds were then used as part of the purchase of a €245,825 townhouse in Puerto Calero, one of Lanzarote’s best-known marina resorts. The property was purchased in the names of Hope and his wife.
The UK Insolvency Service described the movement of the money through multiple accounts as money laundering and says it is now seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act.
Court Sentences
Both men pleaded guilty before their trial.
Hope received:
- A three-year prison sentence, suspended for three years
- 250 hours of unpaid work
- An eight-year disqualification from acting as a company director
Jones received:
- A 10-month suspended prison sentence
- 100 hours of unpaid work
- A two-year director disqualification
No Suggestion of Wrongdoing in Lanzarote
The investigation and criminal proceedings were carried out by UK authorities, and there has been no suggestion that any Lanzarote businesses, estate agents or local authorities were involved in the offences. The property itself simply became part of the investigation after investigators traced where the money had ultimately been spent.
