A UK businessman has been convicted of fraud and money laundering after using fraudulently obtained loans to help buy a property in Puerto Calero, Lanzarote. The UK Insolvency Service said the funds were transferred through multiple bank accounts before being used towards the purchase of the home.

According to the UK government agency, Alex Hope fraudulently obtained two loans in the UK. One was a government-backed Covid-19 business support loan, while the second was secured from a private lender.

The Insolvency Service said Hope was the director of A Hope Ltd when he applied for the Covid support loan in 2020. He received around £25,000 after falsely declaring his company's turnover in order to qualify for the funding.

Chief Investigator Mark Stephens said Hope deliberately lied about the company's finances to obtain money that was intended to help businesses survive the pandemic.

In 2021, while serving as director of CBD company Virtutum Limited, Hope also secured a second loan worth £56,000 from a private lender. Investigators said both loans were used as part of the €245,825 purchase of a townhouse in Puerto Calero, which he bought with his wife.

Stephens also stated that Hope and his business partner, Liam Jones, lied about ongoing legal proceedings against them to obtain the second loan. Jones, who was co-director of Virtutum Limited, was also convicted as part of the same case.

The Insolvency Service said Hope laundered the money by moving it through several bank accounts before using it to buy the Lanzarote property.

Both men pleaded guilty during a court hearing held in June. The UK Insolvency Service is now seeking to recover the fraudulently obtained funds.