Swansea Crown Court has ordered Zahid Afzal, 37, of Haverfordwest, to repay £197,306 within three months following a Proceeds of Crime Act confiscation hearing on Monday 19 January 2026. The order relates to Bounce Back Loans obtained for two mobile phone businesses; if he does not pay, a two‑year default prison term may be activated, and he remains liable for the debt. (gov.uk)
According to the Insolvency Service, Afzal legitimately obtained £52,500 in 2020 for Phone Bits Limited (10136495) and Phones Onn Ltd (11771257) before securing three further £50,000 loans between May and November 2020 by misdeclaring prior borrowing and inflating turnover. Investigators also traced significant transfers from company accounts to his personal accounts. (gov.uk)
Scheme rules required borrowers to self‑certify turnover and confirm that funds would deliver an economic benefit to the business, not personal use. The Bounce Back Loan Scheme permitted one facility per separate business and capped borrowing at the lesser of £50,000 or 25% of turnover. (british-business-bank.co.uk)
Afzal was sentenced in June 2025 to two years’ imprisonment, suspended for two years, and ordered to complete 300 hours of unpaid work. Restraint powers under the Proceeds of Crime Act 2002 were used to freeze assets ahead of confiscation proceedings. The £197,306 figure reflects the three £50,000 loans plus indexation since 2020; £2,722 has been repaid to date. (gov.uk)
Under the Proceeds of Crime Act, confiscation orders are payable immediately unless the court grants time to pay of up to three months, extendable to six. If unpaid by the due date, interest at 8% under the Judgments Act 1838 is added to the balance, and serving any default sentence does not extinguish the order; enforcement can continue after release. (cps.gov.uk)
For context, default prison terms are linked to the unpaid amount. For sums exceeding £10,000 and up to £500,000, the maximum default term is five years; the two‑year term specified in Afzal’s case sits within this band. (sentencingcouncil.org.uk)
Afzal’s operations included phone shops and kiosks in Carmarthen, Shropshire, Andover and North Devon. The Insolvency Service highlights that tackling Bounce Back Loan abuse is a continuing priority; false declarations about previous loans, inflating turnover to reach the £50,000 maximum, and non‑business use of funds all attract criminal sanction and recovery action. (gov.uk)
Practically, the timetable is now fixed. With the order made on 19 January 2026, payment falls due by 19 April 2026 unless the court varies time to pay. Failure to meet that deadline can trigger the two‑year default term, while interest accrues until full payment; prosecutors may also seek an enforcement receiver to realise assets if needed. (gov.uk)