Ex-Peterlee restaurant boss banned after Covid-19 business loan was diverted into his personal account

Kamil Ozkan, who was the sole director of Papa Peterlee Limited, trading as Martino’s Italian Kitchen, in York Road, Peterlee, is now banned from running businesses for six years.

Investigators discovered that Papa Peterlee Limited successfully received a £50,000 Bounce Back Loan as part of the Government’s support packages for business following the outbreak of the coronavirus crisis in 2020.

But, instead of using the loan for the economic benefit of the company, £37,500 was diverted to his personal account.

The transfer was only discovered after the business went into liquidation and an investigation was launched by the Insolvency Service.

The service has now confirmed that Ozkan, who is from West Rainton, near Durham City, is one of three men to be banned from running businesses in the latest round of nationwide disqualifications.

The three restaurateurs are now banned from directly or indirectly becoming involved in the promotion, formation or management of a company without the permission of a court.

Mike Smith, the chief investigator for the Insolvency Service, said “Covid support schemes provided a lifeline to businesses” while also protecting jobs and that Ozkan “flagrantly abused that support”.

Mr Smith added: “The three restaurateurs have now been removed from the corporate arena and creditors will be protected from any further harm.

"Their bans clearly demonstrate that we will not hesitate to take action against directors who have abused Covid-19 financial support like this.”