A Sprinting Champion’s Fraudulent Scheme
A former world sprinting champion, Rick Beardsell, 46, who once earned £75,000 on the television show Dragons’ Den, was found guilty of fraudulently obtaining two Covid Bounce Back business loans. The funds were used to purchase a £1.8 million mansion, despite his company only being eligible for one loan of up to £50,000.
Beardsell, a father of two and a seven-time gold medalist in the World Masters Athletics Championships, had previously secured investment from TV dragons Tej Lalvani and Deborah Meaden for his protein shake bottle business, ShakeSphere. However, instead of using the government loans to support his other company, Sports Creative Ltd., which sells sportswear, he diverted the money to buy a luxurious five-bedroom property called Holly House in Prestbury, Cheshire.
Under the rules of the Bounce Back Loan Scheme, Beardsell was only allowed to apply for one loan. However, he submitted applications to both HSBC and NatWest, inflating his annual turnover by as much as 23 times. The court heard that the actual turnover for the year ending February 2020 was just £20,622, far below the figures he provided on the loan applications.
The funds from the loans were deposited into Sports Creative’s account in January 2021 but were quickly transferred to Beardsell’s personal Santander account. Over six months, there were 179 debits totaling £5,698.15 for non-business purposes, while credits amounted to £399,116.63. In September 2021, Beardsell transferred £431,160.80, including the remaining loan funds, to a solicitor for the purchase of Holly House, which he bought with his wife, Eszter.
Prosecutor Geoff Whealan stated that it was clear Beardsell intended to use the loan funds for the property purchase. Although he later repaid the loans, the court emphasized that this was not a victimless crime. The government had introduced the scheme to support businesses during the pandemic, and Beardsell’s actions deprived honest businesses of much-needed financial aid.
At Chester Crown Court, Beardsell admitted to two charges of fraud and faced up to three years in prison. However, he received an 18-month suspended sentence after repaying the full amount. He was also ordered to complete 250 hours of unpaid work and pay prosecution costs of £11,142.70.
Personal Struggles and Mitigation
During the sentencing, Beardsell’s legal team highlighted several personal challenges. His counsel, Nichola Cafferkey, noted that he had been diagnosed with aggressive testicular cancer in 2019, requiring surgery and chemotherapy. The treatment left him with long-term side effects, including vertigo and ongoing knee pain from his athletic career.
She also pointed out that the stress of the investigation had significantly impacted his family, particularly his wife, who experienced weight loss and insomnia. Beardsell, who has dedicated his life to sports and business, expressed deep remorse for his actions, acknowledging that the fraud was out of character.
Despite these challenges, Beardsell continued to run ShakeSphere successfully with his wife, while Sports Creative was wound up in 2022.
Judicial Remarks
Judge Simon Berkson acknowledged Beardsell’s achievements in both business and athletics but stressed the severity of his actions. He emphasized that the funds obtained through fraud were meant to support struggling businesses during a national crisis. Instead, Beardsell used them for personal gain, depriving others of essential resources.
He concluded that an immediate custodial sentence would have caused significant harm to Beardsell’s family, particularly his young children. The judge noted that Beardsell had taken responsibility for his actions and repaid the loans, but the damage done to public trust and the integrity of the scheme could not be overlooked.
This case serves as a reminder of the importance of honesty and accountability, especially when public funds are involved. While Beardsell’s story highlights the pressures of running a business, it also underscores the consequences of exploiting systems designed to help others during difficult times.
