Cardiff Businesswoman Sentenced for Fraudulently Claiming Over £200,000 from Covid Support Scheme Across Four Companies

A Cardiff woman has been sentenced to over two years in prison for fraudulently obtaining Covid-19 relief loans intended to support struggling businesses during the pandemic. Rupali Wagh, 50, illicitly secured £216,250 in Bounce Back Loans across four of her companies between May and September 2020.

Wagh manipulated her businesses’ turnover figures, availed herself of duplicate loans, and misappropriated the funds for personal expenditures, including settling debts and investing in stocks and shares. Following an investigation by the Insolvency Service, she pleaded guilty to five counts of fraud and was sentenced to two years and three months in prison at Merthyr Tydfil Crown Court on 17 July.

Deceptive Practices Uncovered

According to the Insolvency Service, Wagh deliberately targeted a financial aid scheme designed to assist legitimate businesses in weathering the economic impact of the pandemic. In her initial application in May 2020, Wagh sought £16,250 for One2Four Accounting Ltd, falsely claiming a turnover of £65,000. In reality, the business reported a mere £39,000 in turnover for the previous year.

Shortly after receiving the funds, she transferred a significant portion into her personal bank account, using the money to settle personal debts and invest in financial markets. The following month, she applied for the maximum £50,000 loan for her other enterprise, Talensetu UK Ltd, falsely stating a turnover of £218,000, despite the company being dormant.

Continued Misrepresentation

Wagh’s fraudulent activities did not stop there. She applied for a second £50,000 Bounce Back Loan for Talensetu UK Ltd in July 2020, this time from a different financial institution. She again inflated the company’s financial standing, claiming a turnover of £225,000, while simultaneously indicating a projected turnover of only £72,000 on the same application day.

Once again, after receiving the funds in August, she transferred nearly the entire sum into her personal account for personal use. Wagh’s fourth fraudulent application occurred in August, seeking another £50,000 for White Coconut Ltd, misrepresenting the company’s turnover as £252,000. This contradicted her previous estimates and omitted that she had already received £18,000 from the same bank for the same business three months prior.

Final Application and Legal Consequences

Her last fraudulent application came in late September 2020, when she sought a further £50,000 for Indian Canteen Ltd, which had only been incorporated in January that year. Again, Wagh misrepresented the company’s turnover, claiming it was £206,000 while estimating a mere £82,000 on her application.

During interviews with the Insolvency Service, Wagh initially attempted to deflect responsibility by blaming a third party for one of her loan applications. However, she later retracted this statement, admitting that she acted alone. Wagh acknowledged that she used the loan proceeds to pay off personal credit card debts, mistakenly believing that clearing her debts would benefit her businesses.

Efforts to Recover Fraudulently Obtained Funds

The Insolvency Service is now pursuing recovery of the funds obtained through fraudulent means under the Proceeds of Crime Act 2002. The case serves as a stark reminder of the serious consequences of exploiting financial support systems designed to aid businesses in times of crisis. The Insolvency Service remains vigilant in its efforts to bring to justice those who engage in fraudulent activities during such critical periods.

Wagh’s actions not only undermined the integrity of the Bounce Back Loan Scheme but also highlighted the importance of accountability and transparency in business practices.