An Indian-origin woman has been jailed for more than two years after she defrauded more than £216,000 in government-backed COVID-19 loans by inflating the turnover of her companies and using most of the money for personal expenses and investments.Rupali Wagh, 50, was sentenced to two years and three months in prison by the Merthyr Tydfil Crown Court in Wales on Friday after admitting five counts of fraud related to the UK’s Bounce Back Loan scheme, which was launched to help businesses survive the pandemic, PTI reported.Investigators found that Wagh obtained a total of £216,250 (Rs 2,80,75,521) in loans for four businesses between May and September 2020 by submitting false turnover figures and, in one case, obtaining duplicate loans for the same company.Instead of using the money to support his businesses, he transferred large sums to his personal bank account, paid off personal loans, invested in stocks and shares and sent more than £25,000 to an account in India, according to the Insolvency Service cited by the news agency.His first fraudulent application was for £16,250 from One2Four Accounting Ltd. Wagh claimed that the company had a turnover of £65,000, while records showed that only £39,000 had been produced in the previous year. Within a few weeks of receiving the funds, most of the money was transferred to his personal account.He later secured the maximum loan of £50,000 for TalentSetu UK Ltd by claiming that his business had an annual turnover of £218,000, although official filings showed that the company was defunct. A few days after receiving the money, he transferred the entire amount to his personal account, using it for personal finances, investing in the stock market and transferring more than £25,000 to India.The following month, Wagh successfully applied for a bounce back loan of £50,000 for the same company through a different bank, falsely stating that he had not received any previous loan under the scheme. Investigators said he again diverted almost all of the money for personal use.Despite providing a very low estimate of £72,000 when opening the company’s bank account, he received £50,000 for White Coconut Ltd, an Indian street food business in Cardiff, reporting its turnover as more than £252,000. The application also falsely states that the business has not received a bounce back loan despite previously receiving an £18,000 loan.His last fraudulent application involved Indian Canteen Limited, a company incorporated in January 2020. Wagh obtained a loan of another £50,000 by claiming an annual turnover of £206,000, although he had previously estimated that the business would generate only £82,000. Investigators said he later transferred more than £25,000 of those funds to White Coconuts Ltd.
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During the investigation, Wagh initially claimed that someone else who had access to his computer had submitted an application without his knowledge. He later retracted the account and admitted that he had acted alone.He also admitted to using government-backed loans to repay personal credit card debt and other debts, saying he believed reducing his personal liabilities would ultimately benefit his businesses.David Sneasdale, chief investigator for the Insolvency Service, said Wagh had taken advantage of a scheme designed to support genuine businesses during the pandemic.They knowingly inflated the company’s turnover, secured duplicate loans and used public funds for personal gain, he said, adding that authorities are determined to pursue the COVID-19 fraud no matter how much time passes.