Rick Beardsell enjoyed success on Dragon’s Den but was sentenced this week after illegally applying for two £50,000 bounce back loans
Rick Beardsell, a well-known sprinter on the masters athletics circuit, has been sentenced after he spent Covid loan funds to help buy a £1.3 million house.
He secured two £50,000 bounce back loans for his Sports Creative Limited company in 2020 and 2021 when businesses were only allowed a single loan.
The 46-year-old then moved the bounce back loan funds into his personal bank account, using part of the money to help buy a five-bedroom property in Prestbury in Cheshire while also transferring cash to family members and making mortgage payments.
This was despite him enjoying a £75,000 investment from Tej Lalvani and Deborah Meaden on the BBC programme Dragon’s Den for a protein shake bottle business called “ShakesSphere”.
He was sentenced to 18 months in prison, suspended for two years, when he appeared at Chester Crown Court on Tuesday (July 22).
As an athlete he won multiple sprints titles including the European Masters M45 400m gold in Toruń in 2024 in a UK record of 50.76.
He was also ordered to complete 250 hours of unpaid work and pay costs of £11,152.
However, Beardsell repaid the £100,000 in full earlier this year after his guilty plea but before sentencing.
David Snasdell, Chief Investigator at the Insolvency Service, said: “Rick Beardsell exploited a Covid support scheme designed for struggling businesses, fraudulently obtaining loans he was not entitled to.
“While legitimate business owners fought to stay afloat during the pandemic, Beardsell bought a £1.3 million home with the help of money that should have been supporting his company through difficult times.
“This case sends a clear message that we will not tolerate those who viewed government support schemes as an opportunity for personal enrichment during a national emergency.”
Sports Creative Limited was set up in January 2009 with Beardsell as its sole director. The company described itself on social media as “a bespoke sportswear manufacturer”.
Beardsell applied to the bank for his first £50,000 Bounce Back Loan just before Christmas 2020.
In the application, he claimed that Sports Creative Ltd had a turnover of £485,000.
Just two weeks later, in January 2021, Beardsell applied to a second bank for another £50,000 bounce back loan, this time stating that his company had an estimated turnover of £320,000.
Insolvency Service analysis of Sports Creative Ltd’s bank account revealed that its turnover was just over £90,000, meaning he exaggerated his company’s revenue on both occasions.
Beardsell claimed that he had received a purchase order of $600,000 (about £440,000) for personal protective equipment during the pandemic which ultimately failed to materialise.
Even if this were the case, businesses were required to provide their turnover for 2019, prior to the start of Covid.
Investigations also found Beardsell transferred £83,900 of the £100,000 loan money to his personal bank account in three separate transactions at the start of March 2021.
A total of £431,160 from that account was paid to solicitors for the purchase of a house in September 2021.
Beardsell also made fraudulent transfers of £5000 to his wife, £10,000 to another family member and two mortgage payments for his previous house in Manchester which put the funds beyond the reach of creditors.
In a prepared statement, Beardsell claimed that he had sought “professional advice” that bounce back loan funds could be used for “any purpose” that resulted in a direct benefit to the company. He added that he was advised that this could include investments in company assets or property.
Beardsell also said that HMRC told him that he was eligible to receive the funds from the second loan, advice which would not have been given had he been honest about his successful application for an earlier bounce back loan.
His counsel Nichola Cafferkey said in mitigation: “The loss of his good character is of some significance in respect of a man who has dedicated his life to his family, his professional entities and also his sporting endeavours.
“A year prior to the submission of the first loan application, the defendant was diagnosed with an aggressive form of testicular cancer and required surgery and extensive chemotherapy. The chemotherapy was successful but led to some significant side effects.
“One of those being vertigo, of which he had a severe episode which required hospitalisation and thereafter there are ongoing long-term issues as a result of that.
“The investigations brought on by the defendant’s own actions has had an impact on his family which has led to a situation where he has been experiencing significant stress over the past few years.
“On top of that there are ongoing knee pains associated with his athletic success at national and international level. He has been running a business for many years without issue and it is plain he is extremely remorseful and regretful for his actions.
“These offences were out of character and were committed four years ago. He has taken responsibility and repaid the money back. He knows that it’s his own fault. He has brought shame on his family and brought shame on himself.
“His wife is also his business partner and concerns that they have had about the ability to provide financially for their young children have been significant.
“The impact on his wife’s physical health in terms of stress and strain has been significant. There has been significant weight loss and insomnia.”