At the start of the pandemic as soon as bounce back loans were announced, Emra Kayan successfully applied for a £35,000 covid loan for his business Kayalar Limited, which should have been used to keep his business going.

Shortly after receiving the loan, Emra Kayan dissolved Kayalar, a fruit and vegetable business based in London.

The loan was paid into his business bank account in June 2020 and just days later he transferred £19,000 to various trading platforms. After he lost £2,000 in trades, he transferred the remainder to his personal accounts.

Additionally, he transferred a further £15,920 to personal accounts which he said was to repay loans.

In November 2020 Kayalar Ltd was dissolved, still owing the full £35,000 loan, prompting the Insolvency Service to initiate an investigation.

Kayam was given a seven-year director ban and ordered to pay back £37,460. The extra £2,460 was the interest on the original loan agreement.

Peter Smith, chief investigator at the Insolvency Service, said: ‘Emra Kayam rashly invested taxpayers’ money on the stock market, only withdrawing the funds from the platform when he lost more than £2,000 within days.

‘Kayam’s actions in exploiting the bounce back loan scheme will not be tolerated which is why he has been banned as a director until 2031 and ordered to repay the money he secured from the public purse.

‘The disqualification also sends a message to directors that you cannot dissolve your company in an attempt to evade sanctions.’