A Cardiff businesswoman has been sentenced to two years and three months in prison after fraudulently obtaining more than £200,000 through government backed Covid business support loans.
Fraudulent Loan Applications
Rupali Wagh, 51, submitted several false loan applications between May and September 2020. Investigators found that she exaggerated the financial performance of her businesses to qualify for larger loans.
The Covid loan scheme was introduced to help businesses survive the financial impact of the pandemic. However, authorities said Wagh abused the system for her own financial benefit.
She admitted to five counts of fraud in court. The court sentenced her at Merthyr Tydfil Crown Court on Friday.
Money Used for Personal Investments
Instead of using the funds to support her businesses, Wagh transferred much of the money into her personal bank account.
Investigators discovered that she paid off credit card debt, invested heavily in stocks and shares, and transferred more than £25,000 to a bank account in India.
The court heard that these transactions had nothing to do with business recovery during the pandemic.
False Business Information
The first fraudulent application involved One2Four Accounting Ltd, a bookkeeping company established in 2018.
Wagh claimed the company had an annual turnover of £65,000. Financial records later showed its actual turnover was about £39,000.
She later applied for another loan worth £50,000 for Talensetu UK Ltd. She claimed the company generated £218,000 in turnover.
However, official company records showed the business was not actively trading during the relevant period.
Soon after receiving the funds, she transferred the full amount into her personal account and spent the money on investments and personal finances.
Court Says Fraud Was for Personal Gain
During sentencing, Judge David Wynn Morgan described Wagh’s actions as completely dishonest and motivated by personal financial gain.
The investigation revealed that she secured a total of £216,250 through five Bounce Back Loans and two additional business loans. Under the scheme, businesses were only allowed to receive one Bounce Back Loan.
Authorities said the case highlights the importance of protecting public funds that were created to support genuine businesses during the Covid pandemic.
