Category: News

The latest from ESA Risk and related industries, plus current affairs commentary.

Companies House security issue: What it means for UK businesses

Posted on by Caitlin Duncan

A recent Companies House security issue has raised important questions about the reliability of UK corporate data and the growing risk of fraud linked to public registries.

While not a traditional cyber attack, the vulnerability exposed weaknesses in how company information is accessed and managed, highlighting that even official sources can be open to manipulation.

For businesses, legal professionals and insolvency practitioners, the implications extend beyond data exposure. This incident underscores a broader concern: how much trust can be placed in Companies House data without independent verification?

What happened

The issue stemmed from a flaw within the Companies House WebFiling system, introduced during a system update in late 2025. The vulnerability allowed users to access company records that were not their own, in some cases through simple navigation actions.

As a result, sensitive director information, including dates of birth, residential addresses and contact details, may have been exposed.

More significantly, there were concerns that unauthorised filings could have been made, including:

  • Changes to director details
  • Amendments to registered office addresses
  • Submission of company filings

While there is no confirmed evidence of widespread abuse, the fact that the vulnerability existed for months has led to concerns around Companies House data reliability and potential misuse.

Why this matters for businesses

Increased corporate fraud risk

Companies House is widely used as a trusted data source by banks, lenders, counterparties and legal professionals. A weakness in this system creates opportunities for corporate fraud in the UK, particularly where bad actors exploit inaccurate or manipulated records.

This could include:

  • Impersonating legitimate companies
  • Opening bank accounts fraudulently
  • Diverting payments or correspondence

This form of corporate identity fraud is becoming increasingly sophisticated, particularly where verification processes rely heavily on registry data alone.

Director data exposure and targeted attacks

The exposure of personal data significantly increases the risk of:

  • Identity theft
  • Phishing and spear-phishing attacks
  • Social engineering targeting directors and senior individuals

Directors are often key decision makers with access to financial controls, making them high-value targets. The availability of this data through a Companies House vulnerability lowers the barrier for targeted fraud.

Reliability of Companies House data

For legal professionals and insolvency practitioners, this incident raises a critical issue: can Companies House be treated as a single source of truth?

In practice, reliance on unverified registry data can introduce risk into:

Where company records may be inaccurate or temporarily manipulated, decisions based solely on this data may be flawed.

How could this have been prevented?

The vulnerability appears to have been the result of system design and control failures, rather than a sophisticated external breach. Several preventative measures could have reduced the risk:

Stronger access controls

Proper segregation of user permissions should prevent any possibility of accessing another company’s records without authorisation.

Robust testing and QA processes

The flaw was introduced during a system update and remained undetected, suggesting insufficient penetration testing and user validation.

Layered security approach

Over-reliance on single authentication methods (such as filing codes) creates risk. An in-depth defence approach, combining multiple verification layers, would significantly reduce exposure.

Continuous monitoring and alerts

Effective systems should detect:

  • Unusual access patterns
  • Irregular filing activity
  • Cross-account access attempts

The absence of such controls allowed the issue to persist longer than it should have.

What should companies do now?

In light of this Companies House security issue, businesses should take proactive steps to mitigate risk:

  • Review company records for any unauthorised changes
  • Monitor filing history and updates regularly
  • Restrict internal access to filing credentials
  • Educate directors on fraud and phishing risks
  • Conduct enhanced due diligence on counterparties

Taking these steps can reduce exposure to company filing fraud and improve overall resilience.

The role of corporate investigations and due diligence

This incident highlights a key point: public registry data should not be relied upon in isolation.

At ESA Risk, we support clients with:

  • Independent verification of company information
  • Identification of discrepancies in filings
  • Corporate investigations into ownership and control
  • Due diligence on business partners and counterparties
  • Fraud risk assessment and ongoing monitoring

Where there is uncertainty around data integrity, independent intelligence provides clarity and reduces risk.

A wider issue for UK corporate transparency

The UK has taken steps to strengthen corporate transparency through legislative reform. However, this incident demonstrates that data availability must be matched by data security.

As Companies House becomes more central to fraud prevention efforts, its reliability and resilience are increasingly critical. For businesses and advisors, this means adopting a more cautious and investigative approach to corporate data.

Key takeaways for businesses and advisors

The Companies House vulnerability is a timely reminder that even official systems are not immune to risk.

For businesses, the threat lies in fraud, impersonation and data misuse. For legal and financial professionals, it highlights the importance of verifying information beyond surface-level records.

In an environment where corporate fraud risk in the UK continues to evolve, relying solely on publicly available data is no longer sufficient.

Independent verification, proactive monitoring and informed investigation are now essential components of effective risk management.

Speak to ESA Risk today

If you have concerns around the accuracy of Companies House data or potential exposure to corporate fraud, ESA Risk can assist. We support businesses, legal professionals and insolvency practitioners with discreet, intelligence-led enquiries to verify company information and identify risk.

Whether you require straightforward verification of company records or more in-depth investigations into ownership, control or suspected manipulation, we will work with you to understand your objectives and tailor our approach accordingly.

Where there is uncertainty around filings or director information, we can also undertake tracing, due diligence and background enquiries to ensure you are relying on accurate, up-to-date intelligence.

Contact our Client Services team at advice@esarisk.com, on +44 (0)343 515 8686 or via our contact form.

 

New national ‘Report Fraud’ service launches

Posted on by Caitlin Duncan

Report Fraud, the UK’s national reporting service for cyber crime and fraud, has launched as the central platform for submitting fraud-related reports. The service replaces Action Fraud as the primary reporting route for individuals and organisations across England, Wales and Northern Ireland. It became operational in December 2025, with a full public rollout in January 2026.

Operated by the City of London Police, Report Fraud aims to offer a clear, modern and streamlined reporting experience for victims of phishing, ransomware, business email compromise, CEO fraud and other online scams.

What the new service provides

Report Fraud introduces updates to the way fraud and cyber crime reports are submitted and managed:

  • Structured reporting – A guided process supports users in submitting relevant information in a consistent format.
  • Guidance and information – Reporters are provided with information on what types of fraud and cyber crime can be reported, along with details on what happens after submission.
  • Victim support information – Reporters receive guidance and signposting to support services where applicable.
  • National crime analysis – Submitted reports are incorporated into a centralised analysis function used to identify trends, patterns and repeat activity at a national level.

How reports are processed and used

Reports submitted through Report Fraud are reviewed and handled as part of the national fraud reporting framework:

  • Intelligence assessment – Reports are assessed to identify links, patterns or indicators associated with organised or harmful criminal activity.
  • Dissemination – Where reports meet established criteria or are linked to other cases, they may be shared with the relevant police force for further consideration.
  • Reporter updates – In cases where police action follows, reporters may receive updates or a point of contact in accordance with the Victims’ Code of Practice.
  • Ongoing intelligence use – Reports that do not result in immediate investigation are retained for intelligence purposes, supporting monitoring activity, disruption measures, or future investigations.

National reporting for fraud and cyber crime

Cyber crime and fraud are among the most prevalent and economically damaging crimes in the UK, costing individuals and organisations billions each year. Report Fraud intends to provide a single national gateway for reporting and intelligence that strengthens collaboration between the public, businesses, law enforcement and other agencies.

Further information, including how to submit a report, is available at reportfraud.police.uk.

Fraud investigations by ESA Risk

If you suspect that a fraud has occurred within your business and need advice or support on the next steps, we’re here to help.

Additionally, we can help you to prevent fraud from occurring through manager and employee training and resource provision.

For further details, contact our Client Services team, at advice@esarisk.com, on +44 (0)343 515 8686 or via our contact form.

 

Construction boss banned after selling £100,000 worth of classic cars for £1

Posted on by Caitlin Duncan

A Staffordshire businessman, Kulbarg Singh, has been banned from serving as a company director for 6 years after transferring significant company assets, including a collection of classic cars worth more than £100,000, for just £1.

The case, investigated by the Insolvency Service, is a study in deliberate breach of fiduciary duties and transaction at undervalue, highlighting both the risks such misconduct poses and the type of behaviour that corporate investigators can be tasked with uncovering.

Singh, director of Aldridge Construction Engineering Ltd, transferred around £1.5 million in company assets to another company he controlled, Ace Earth Solutions Ltd, for just over £465,000. Singh had served as a director of Ace Earth Solutions Ltd between February 2020 and April 2022. Among the assets transferred were seven classic vehicles, a Daimler from 1936, Jaguars from the 1960s and 70s, and three Rolls Royces, collectively worth over £100,000, sold as part of this broader undervalued transaction.

The sale caused Aldridge Construction to lose more than £1 million, leaving it insolvent. By the time the company went into liquidation in June 2022, it had no remaining assets and total liabilities exceeding £1.5 million to HM Revenue and Customs and other creditors.

From a corporate investigator’s perspective, this case contains several red flags. First, the related-party nature of the transaction: Singh controlled both the selling and receiving companies. Second, the gross undervaluation: Assets worth six figures were effectively transferred for nothing. Third, the timing: The transaction occurred during a period when the company’s financial health was deteriorating. Together, these factors are typical of a transaction at undervalue to a related party, actionable under UK insolvency law.

Our approach in such cases is to reconstruct the true flow of value. That involves tracing the ownership of assets, assessing fair market worth, and examining the director’s role in authorising the transfer. Physical assets like classic vehicles present an advantage for investigators, they carry transparent market valuations, insurance records, and registration histories. This makes it more straightforward to demonstrate the disparity between the book value and the transfer price, and, crucially, to evidence intent.

The Insolvency Service’s decision to disqualify Singh until 2031 shows the strength of that evidence. But while disqualification protects the public from repeat behaviour, it rarely recovers value for creditors. That is where investigation plays a critical role, by equipping liquidators, creditors, and their legal teams with the evidence needed to challenge undervalued transactions and, where possible, claw back lost assets.

Why this case matters

From my perspective, this case underscores three important lessons for the investigative community and for creditors alike.

Related-party transfers can be obvious. Directors may attempt to move assets to companies they control, but these transactions are usually detectable with detailed scrutiny. Evidence is often in plain sight if you know what to look for.

Intent and breach of duties are central. Investigations hinge on demonstrating that a director knowingly acted against the company’s best interests. Selling £100,000 worth of classic cars to a company they controlled for £1 is a clear example of deliberate undervaluation and a breach of fiduciary duties.

Early detection preserves value. Waiting until insolvency occurs often makes recovery impossible. Monitoring and investigating suspicious related-party transactions early can safeguard company assets and strengthen any legal or regulatory action.

Insolvency and debt investigations

When a director sells assets undervalue, creditors lose, and without rigorous investigation, misconduct like this can easily go unchallenged. At ESA Risk, we ensure it doesn’t. For more information on how ESA Risk can help to identify hidden assets or locate targets who have gone to ground, contact Mike Wright, Investigations and Risk Management Consultant, at advice@esarisk.com, on +44 (0)343 515 8686 or via our contact form.

You can also learn more from our Insolvency & Debt Investigations brochure.

 

Download our Insolvency & Debt Investigations brochure

 

Inside the Insolvency Service’s 2026–2031 Investigations and Enforcement Strategy

Posted on by Caitlin Duncan

The Insolvency Service has unveiled a sweeping new five-year strategy that signals a fundamental evolution in its role from an insolvency-focused regulator to a central pillar in the UK’s fight against economic crime. 

With fraud now the most commonly reported crime in the UK, the Service’s 2026–2031 Investigations and Enforcement Strategy lays out a clear and ambitious roadmap. The strategy outlines an expanded role for the agency, including increased enforcement powers, use of data analytics and technology, and closer collaboration with other government bodies. 

From liquidations to law enforcement 

Traditionally viewed as a body focused on liquidations and disqualifications, the Insolvency Service is expanding its scope. Its new strategic priorities emphasise criminal enforcement, asset recovery, and fraud prevention, particularly in areas of systemic abuse, such as Covid-19 Bounce Back Loan Scheme fraud and the misuse of corporate entities as vehicles for laundering money. 

What’s changing? 

  • A broader investigative remit that extends beyond insolvency cases 
  • Greater use of AI and data analytics to uncover complex fraud 
  • Stronger ties with enforcement partners like NATIS, CPS, HMRC, and Companies House 
  • A clear mandate to recover proceeds of crime, including from crypto-assets 

The numbers behind the strategy 

The strategy follows a period of heightened enforcement activity. In the 2024–25 financial year, the Insolvency Service: 

  • Secured 77 criminal convictions 
  • Disqualified over 1,000 company directors 
  • Achieved more than £4 million in compensation orders 
  • Delivered over £50 million in estimated economic benefit by removing bad actors from the market 

The strategy sets targets to expand enforcement activities over the next 5 years. 

Protecting market confidence 

One of the central themes of the strategy is restoring confidence in the UK’s corporate ecosystem. The Service will play a more prominent role in deterring misconduct, ensuring directors understand the consequences of non-compliance and that victims of economic crime see accountability in action. 

This aligns with the government’s broader ambitions to make the UK one of the safest places in the world to do business, especially in the wake of recent reforms at Companies House and increased scrutiny on shell companies and nominee directors. 

Tackling emerging threats 

The strategy doesn’t just address known threats; it also anticipates emerging ones. The Service is investing in expertise to handle: 

  • Cryptocurrency-linked fraud 
  • Cross-border financial crime 
  • Sophisticated abuse of government funding schemes 

With specialist teams and better intelligence-sharing frameworks, it aims to disrupt criminal networks before damage is done, moving from reactive to preventative enforcement. 

Strategic collaboration 

Perhaps most significantly, the strategy emphasises inter-agency collaboration. It recognises that no single authority can tackle complex fraud alone. The Insolvency Service will work closely with other government bodies, using shared data, joint investigations, and aligned enforcement tactics to deliver faster, more effective outcomes. 

Looking ahead 

As someone who’s worked in risk management and investigations for over 3 decades, I see the 2026–2031 Investigations and Enforcement Strategy as a major turning point in the UK’s approach to corporate oversight.  

For risk professionals, compliance leaders, and directors, the implications are clear: regulators will expect more transparency, better governance, and faster responses to warning signs of misconduct.  

This introduces both challenges and opportunities; increased scrutiny, a more aggressive enforcement posture, and expanded data surveillance mean businesses must take internal controls more seriously than ever. At the same time, the strategy promises a fairer marketplace, where those who follow the rules are no longer undercut by fraudsters operating with impunity. 

At ESA Risk, we’ll be tracking how this strategy plays out in practice, how cases are investigated, which industries come under the spotlight, and what risk professionals can do to stay ahead. 

Fraud investigations by ESA Risk 

If you suspect that a fraud has occurred within your business and need advice or support on the next steps, we’re here to help. 

Contact us at advice@esarisk.com, on +44 (0)343 515 8686 or via our contact form to find out more. 

 

Bounce Back Loans: April – June 2025 roundup

Posted on by Caitlin Duncan

We’re now 5 years on from the pandemic and cases of Covid-19 Bounce Back Loan Scheme (BBLS) related fraud show no sign of slowing down. A further 8 cases were reported in the last 3 months.

We continue our coverage on the Insolvency Service’s initiative to uncover financial wrongdoing connected to the Bounce Back Loan Scheme.

Bankruptcies and bans

Joseph Harrison, a car dealer from Wrotham, Kent, and director of Southeast Commercials Ltd, has been banned from acting as a company director for 12 years starting 6th May 2025, after abusing the Covid Bounce Back Loan Scheme. Harrison’s company applied for and received 2 £45,000 loans in 2020, violating scheme rules that limited businesses to 1 loan. Investigations revealed that Harrison falsely declared the second loan application as the company’s first.

His company, which sold used cars and motor vehicles, was later dissolved in January 2025. Harrison claimed the first loan application was submitted by a third party, but no evidence supported this. He has been ordered to repay £38,295 remaining from the second loan.

Carl Barnes, the director of Central Plumbing & Heating Lincoln Ltd, has been disqualified as a company director for 11 years after fraudulently obtaining a £47,500 Covid Bounce Back Loan. Barnes falsely claimed that his company had a turnover of £340,000 in 2019, when its actual turnover was £0. Central Plumbing & Heating Lincoln Ltd, incorporated in April 2016, had filed dormant accounts for several years after initially posting a small profit in its first year.

Insolvency Service investigations revealed Barnes’s dishonesty in exploiting the Bounce Back Loan Scheme, which was intended to support small businesses during the pandemic. The company went into liquidation in October 2022, and Barnes’s director disqualification was made official on 17th April 2025, beginning on 8th May 2025.

Romain McLean, a management consultant and sole director of RMC Associates Limited in Wimbledon, has been banned from serving as a director for 11 years following fraudulent activities related to the COVID Bounce Back Loan scheme. McLean deceitfully secured 2 loans totalling £80,000 by significantly overstating his company’s turnover on 2 occasions. Initially, in May 2020, he applied for and received £30,000, despite his company being entitled to only around £12,000, based on its authentic turnover which he inflated by over £100,000. Subsequently, in July 2020, McLean wrongfully secured an additional £50,000 by falsely claiming it was his sole application and overstating his turnover once again.

During the Insolvency Service investigation, McLean admitted to exaggerating his turnover to maximise the loan amounts, expressing a desire to get as much money as he could. As a result of the investigation, he agreed to an 11-year disqualification from acting as a company director, which began on 30th May 2025, and offered a £60,000 settlement repayment.

RMC Associates Limited, founded in 2008, faced a winding-up petition in 2023.

Suspended

Gary Wright, a former pub landlord from St Helens, applied for a £25,000 Bounce Back Loan in 2020 to support his business during the pandemic, but failed to disclose that he was bankrupt at the time. Wright owned the Talbot Ale House, which ceased trading in 2019. He was declared bankrupt in February 2020 due to debts owed to a utility company but applied for the loan in June 2020, falsely claiming the pub’s turnover was £400,000. Bankrupt individuals are legally required to disclose their status when applying for loans exceeding £500.

Wright repaid the loan in full prior to sentencing but was handed a suspended 2-year prison sentence at Liverpool Crown Court on 24th April 2023. He was also ordered to complete 150 hours of unpaid work and pay £1,500 in costs. Wright remains an undischarged bankrupt, meaning he is still subject to bankruptcy restrictions.

Rico Iheagwara, a 36-year-old recruitment consultant from Hertfordshire, has been sentenced to an 18-month suspended prison term for fraudulently obtaining £40,000 in Bounce Back Loans during the 2020 COVID-19 pandemic. His company, SJR Recruitment Limited, was not operational at the time he applied for 2 separate £20,000 loans, against the rules that permitted only 1 loan per business. Following his court appearance at St Albans Crown Court on 16 May, Iheagwara was also mandated to complete 120 hours of unpaid work and 15 days of rehabilitation activities.

SJR Recruitment Limited, incorporated in January 2017 and directed solely by Iheagwara, was later liquidated in April 2021 with over £67,000 in liabilities. Investigations revealed Iheagwara transferred the loan amounts to his personal account immediately upon receipt, using them for personal expenses, including rent and family support, rather than for business purposes as intended by the loan scheme. The Insolvency Service is actively seeking to recover the misappropriated funds under the Proceeds of Crime Act 2002.

Jagoda Rubaszko, a 37-year-old woman from Northolt, was found guilty of fraudulently claiming a £50,000 Covid Bounce Back Loan by inventing a non-existent administrative service business. Despite claiming a business turnover of £210,000, investigations revealed her actual tax returns were no higher than £15,100 annually between 2019 and 2021. Rubaszko admitted to being influenced by a man named Daniel, whom she could not prove exists, to apply for the loan and falsely declare bankruptcy to evade repayment.

She received the loan on 28th April 2021, after applying on 26th April 2021, claiming her business started on 1st March 2020. Instead of utilising the funds for business purposes, she transferred £50,000 in 22 smaller amounts to 5 different bank accounts in Poland over 2 months. These actions were in stark contrast to her declaration of paying Daniel a £17,500 commission, for which no evidence was found in her bank records.

For her fraudulent actions, Rubaszko was sentenced to 18 months in prison, suspended for 21 months, coupled with a 6-month curfew and a requirement to complete 175 hours of unpaid work. Subsequently, she was subjected to a 10-year Bankruptcy Restrictions Undertaking (BRU), effective until 2033, which limits her ability to manage a limited company.

Zahid Afzal, the director of Phone Bits Ltd and Phones Onn Ltd, which operate mobile phone shops in the UK, received a 2-year suspended sentence for fraudulently claiming £150,000 in COVID-19 Bounce Back loans. Initially, Afzal secured legitimate loans totalling £52,500 for his 2 businesses. However, he subsequently applied for 3 additional loans of £50,000 each by falsely claiming they were the first loan applications and inflating his companies’ turnovers.

Afzal transferred most of the fraudulent funds to his personal accounts, despite claiming the money was for business purposes. He was sentenced at Swansea Crown Court on 12th June 2025 for 3 counts of fraud by false representation. The Insolvency Service is now working to recover the funds under the Proceeds of Crime Act 2002.

Sentenced

Shohid Ahmed, a 40-year-old man from Bradford, was sentenced to 2 years in prison for fraudulently securing £100,000 in Bounce Back Loans. Ahmed used his wife’s identity to apply for 3 loans for his Indian restaurant, Red Square Restaurants Limited, despite not being the company’s named director and having previously claimed the business was no longer trading.

Ahmed also attempted to mislead investigators by using the personal details of a woman who was his father’s tenant, falsely registering her as the director of his company. He further produced a fake invoice for £15,000, claiming it was for a restaurant refurbishment.

He pleaded guilty to several offences and has only repaid £5,000 of the fraudulently obtained funds. The Insolvency Service is pursuing the recovery of the remaining money under the Proceeds of Crime Act 2002. Despite his claims, investigations found that the loan money was not used for the benefit of the business as required by the loan scheme. Ahmed was already disqualified from acting as a company director for 11 years due to his misconduct.

Insolvency and debt investigations

Seeing the whole picture in insolvency and debt cases is key to maximising returns to creditors. For more information on how ESA Risk can help to identify hidden assets or locate targets who have gone to ground, contact Mike Wright, Investigations and Risk Management Consultant, at advice@esarisk.com, on +44 (0)343 515 8686 or via our contact form.

You can also learn more from our Insolvency & Debt Investigations brochure:

 

Download your copy

Manchester networking event – June 2025

Posted on by Caitlin Duncan

On Thursday 12th June, The 500 Club returned to Manchester for another vibrant evening of networking. Our second Manchester event of the year, following an equally fantastic gathering in February.

Alongside regular hosts Chris Jones of Asertis, Mike Sheath and Nicola Hainey of CAPA, Mike Rose, Liam Geoghegan and myself at ESA Risk, we welcomed a special guest host for this event, 18 St John Street Chambers.

This time, the backdrop was the stylish Rain Bar, a venue that proved to be as much a talking point as the conversations themselves. The setting created the perfect atmosphere for meaningful engagement.

As ever, the turnout exceeded expectations and the room bustled with a diverse mix of professionals, including representatives from prominent firms such as Bermans, CG & Co, Fieldfisher, JMW, Kuits, Moorfields, Quantuma, RSM, Weightmans and more, each bringing a unique perspective to every conversation.

From sharing insights on current challenges across sectors to identifying aligned goals between firms and individuals, the evening offered real value beyond business cards and pleasantries.

It was the kind of evening that sums up what The 500 Club is really about—creating opportunities for professionals to connect in an authentic, meaningful way.

We’re proud to be building a trusted network across the UK that enables people to build relationships, open doors, and support each other in an ever-evolving professional landscape.

Next up is Nottingham (19th June), a brand new city in our event line up and one I’m very much looking forward to hosting.

With events regularly held in Manchester, London, Leeds, Liverpool and more new cities joining the calendar throughout 2025, there’s never been a better time to get involved.

If you’re working in insolvency, restructuring, law, finance or related sectors and want to grow your network, deepen industry relationships, and be part of a forward-thinking community, we’d love to see you at a future event.

Follow us on LinkedIn to stay up to date with upcoming events or explore the 2025 calendar to find an event near you.

To join the invite list, email events@the500club.co.uk.

Bounce Back Loans: January – March 2025 roundup

Posted on by Caitlin Duncan

Our coverage continues on the Insolvency Service’s initiative to uncover financial wrongdoing connected to the Covid-19 Bounce Back Loan Scheme (BBLS), amid sustained efforts to identify businesses and individuals who exploited the scheme intended solely for vulnerable businesses during the pandemic.

There were 7 updates from the Insolvency Service on BBLS-related fraud in the last 3 months.

Sanctioned

Zhongqing Li, the former owner of the Silver Sea Chinese takeaway in Gillingham, Kent, has been sanctioned with a nine-year disqualification from acting as a company director after wrongfully claiming a £50,000 Bounce Back Loan during the Covid pandemic.

Despite the business not meeting the eligibility criteria for the scheme, Li applied for the loan in June 2020. The Official Receiver discovered, following Li’s bankruptcy in June 2024 still owing the loan amount, that Silver Sea had not been trading by the required date of 1st March 2020 to qualify for the loan.

Li accepted a Bankruptcy Restrictions Undertaking (BRU) without disputing the claim that he obtained the loan improperly, leading to restrictions on his financial and business activities, including acting as a company director or borrowing over £500 without disclosing his sanctions, effective until 27th January 2034.

The Silver Sea takeaway is currently trading under new ownership while the Official Receiver investigates the possible recovery of the funds.

Huseyin Houssein, a 55-year-old former London minicab driver from Edmonton, North London, has been subjected to an 11-year sanction due to the abuse of the Covid Bounce Back Loan scheme.

In his application in August 2020, Houssein falsely claimed his business had a turnover of £200,000 the previous year to obtain the maximum loan of £50,000. However, it was discovered during his bankruptcy in February 2024 that the actual turnover was only £11,446, meaning he was entitled to just £2,861. Houssein spent the entire £50,000 between October 2020 and May 2021 on non-business related expenses.

As a result of giving false information and misusing the funds, Houssein has agreed to a BRU.

Suspended

Jordan Allen, a plasterer from Lancashire, fraudulently obtained a £50,000 Covid Bounce Back Loan in 2020 by exaggerating his business’s turnover by more than £200,000. His actual business turnover was only around £20,000 annually, making him eligible for just £5,000. Despite this, he claimed a turnover of £225,000. Allen spent the loan on personal expenses, including supermarket shopping, gambling, and fantasy football.

After declaring bankruptcy in 2021, he faced legal consequences and was sentenced at Preston Crown Court to a 16-month suspended prison term, 200 hours of unpaid work, and 10 days of rehabilitation activity, along with a mandate to pay £3,600 in compensation. Additionally, Allen agreed to a 10-year BRU.

Sentenced

Arti Deda, a Berkshire construction company director, was sentenced to 2-and-a-half years in prison and disqualified from acting as a company director for 10 years after fraudulently obtaining 2 maximum-value Bounce Back Loans, each worth £50,000, for his company Knight Workers Limited during the COVID pandemic.

The company, entitled to only one loan, falsely claimed annual turnovers of £390,000 and £495,000 to receive the loans which were never used for the benefit of the business as required. Instead, significant amounts were transferred to associates and third parties.

Following an investigation by the Insolvency Service, Deda was convicted of fraud and other criminal offences and ultimately failed to repay the loans. Knight Workers was liquidated in November 2021, with efforts now to recover the funds under the Proceeds of Crime Act.

Devon taxi driver, Murat Dogantekin, was sentenced to 2 years and seven months in prison for fraudulently securing 2 Bounce Back Loans totalling £100,000 during the Covid pandemic. By falsely claiming his turnover was over £350,000 more than his actual earnings, Dogantekin, aged 50, received far more financial support than he was entitled to, over £95,875 more. He transferred the fraudulent funds to a close family member and an offshore account, showing no intention of using the money for legitimate business purposes or making any repayments.

Residing in Exeter, and declared bankrupt in November 2021, Dogantekin ignored multiple attempts from Insolvency Service investigators to clarify his financial activities. His flagrant abuse of pandemic support measures has led to efforts to recover the funds under the Proceeds of Crime Act.

Nelson Clark, a 34-year-old taxi driver from Dartford, Kent, has been sentenced to 2-and-a-half years in jail for fraudulently obtaining £130,000 through three Covid Bounce Back Loans.

Clark significantly inflated his business turnover in the loan applications during 2020, misleading the banks on 2 separate occasions for his businesses, N Clark Taxis, Nelson Clark Management, and Rosewood Motors. Despite claiming an annual turnover of £120,000 for N Clark Taxis and £200,000 each for the other 2 businesses, investigations by the Insolvency Service revealed these figures were grossly exaggerated.

Clark misused the funds for personal benefit, including transferring £80,000 to a third party. Following his bankruptcy declaration in August 2021, he accepted a 10-year Bankruptcy Restrictions Undertaking in March 2022, limiting his financial activities. Again, The Insolvency Service is actively seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002.

Ilhan Kekec, a restaurant owner, has been ordered by the court to repay the full amount of a fraudulently secured £30,000 Covid Bounce Back Loan plus interest, totalling £37,426, or face an additional 18 months in prison.

Kekec, aged 36, had previously received a 2-and-a-half-year jail sentence in March 2024 for overstating his company’s turnover to obtain the loan and attempting to dissolve his business without notifying creditors. He was also ordered to pay £15,900 in costs. Kekec had admitted to using the loan to pay off personal debts instead of for the economic benefit of his business as claimed in his loan application. He further breached his duty by not informing creditors of his intention to dissolve Hizirali Ltd, the company set up to run Derwish Kebab Restaurant. Additionally, Kekec was banned from acting as a company director for three years.

Insolvency and debt investigations

Seeing the whole picture in insolvency and debt cases is key to maximising returns to creditors. For more information on how ESA Risk can help to identify hidden assets or locate targets who have gone to ground, contact Mike Wright, Investigations and Risk Management Consultant, at advice@esarisk.com, on +44 (0)343 515 8686 or via our contact form.

You can also learn more from our Insolvency & Debt Investigations brochure:

 

Download your copy

Leeds networking event – March 2025

Posted on by Caitlin Duncan

Last week (13th March) Chris Jones from Asertis, Nicola Hainey from CAPA, Mike Wright, Mike Rose and I hosted The 500 Club in Leeds for the first time this year.

Following the incredible turnout at our Manchester, London and Birmingham events in the weeks prior, Leeds maintained the momentum, with an equally well attended evening at a favoured venue, Sky Lounge.

With fantastic views over Leeds, I enjoyed a wonderful couple of hours with professionals from many different firms, including Bishop and Sewell, Freeths, Irwin Mitchell, Keystone Law, Primas Law, Opus, Markel and Walker Morris. The conversation (and drinks) were flowing, with ample opportunity for introductions to new contacts, and overdue catch ups with friends.

It was an added bonus, and apt following International Women’s Day only a few days before, to meet some of the phenomenal women working within law, finance, insolvency and related sectors who were in attendance.

The 500 Club is next in Leeds on Thursday 10th July. Before then, you’ll find us in London (twice), Bristol, Liverpool, Newcastle, Glasgow, Edinburgh, Manchester and Nottingham. See the full 2025 event calendar.

Next up is Bristol (10th April) where my colleagues Caitlin Duncan and Mike Rose will be hosting for ESA Risk.

Join The 500 Club community online and stay informed about event updates throughout the year on our LinkedIn page.

Email events@the500club.co.uk to get your name on the invite list.

London networking event – February 2025

Posted on by Caitlin Duncan

Hot on the heels of the very successful return of our networking series in Manchester last week, we continued on a high, with an equally well-attended London event on Thursday (13th February).

Joined by co-hosts Roger Dugan and Hannah Proctor of Asertis, Mike Sheath and Tony Sweeney of CAPA, my colleague Caitlin and I enjoyed a fantastic few hours of networking with some incredibly interesting professionals from firms such as 3 Paper Buildings, Arafino Advisory, Birketts, CBW Recovery, Dentons Howman Solicitors, Markel, Moore Kingston Smith and more.

As always, it was a pleasure to catch up with new and long-standing friends and introduce ourselves, and our events, to newcomers on the scene.

We stuck with a tried and tested venue for the occasion, Davy’s, a central meeting point that can cater to our need for good wine and a great atmosphere.

We’re overjoyed at the overwhelming response from individuals across the legal, finance, insolvency and related sectors interested in becoming part of our growing community,  not to mention our established contacts continued participation in networking events all over the country.

I’m looking forward to a jam-packed schedule and even more valuable connections in 2025.

The 500 Club is next in London on Thursday 24th April.

Upcoming events include Birmingham on Thursday 6th March, Leeds on Thursday 13th March and Bristol on Thursday 10th  April. Check out the full 2025 schedule. 

If you’d like to join our mailing list and receive invites to events near you, let us know. You can also join over 1,000 of your peers who keep up-to-date with The 500 Club on our LinkedIn page.

The return of The 500 Club

Posted on by Admin Admin

The 500 Club is back. After a couple of months’ break over the winter, Caitlin Duncan and I returned to hosting our networking event series on Thursday 6th February, alongside our usual co-hosts, Asertis and CAPA.

And what better place to start than Manchester, where we have an office and Asertis are headquartered.

This didn’t disappoint as a kick-off event, as scores of the region’s finest legal, insolvency and finance minds gathered together to catch up with colleagues, peers and friends, and to further develop their networks.

It was great to see so many 500 Club regulars for the first time this year, as well as new faces and new firms being represented.

The venue was North Westward Ho – still a relative newcomer to the Manchester bar scene, and well worth checking out. This was the second time we’ve hosted there.

We introduced a small but noticeable change at the event, which we’ll keep in place for this year’s series – name badges. While we know our guests love the informal nature of The 500 Club events, one of the hardest things about networking is remembering the names of everyone you speak to (particularly as a host when there’s an expectation that you know everyone!). Something else we know works well is not hiding the group away in a private room, but enjoying the atmosphere of the venues we host in. This poses its own challenges, as it’s not always immediately clear where the group starts and ends. The small addition of name badges for hosts and guests solved both problems, hopefully without adding too much formality to proceedings.

I imagine this change helped those people in the room who are earlier on in their career, especially. It was brilliant to welcome a number of ‘rising stars’ to the event, last week. Our events are open to people at all stages of their career and all levels of seniority. We’re big believers in developing your network early on and continuing to do so as your career progresses.

The 500 Club is next in Manchester on Thursday 12th June. Before then, we have a packed schedule, which will take in London (twice), Birmingham, Leeds, Bristol, Liverpool and Newcastle (with 3 more cities to add later in the year).

Next up is London this Thursday 13th February. The guestlist for the event is overflowing. In part, that’s down to us receiving so many requests from people to join us for the first time (as we had for Manchester, too). We’re proud that The 500 Club has become an established part of the professional networking calendar in various cities and word has spread that the events are an excellent way to meet and stay in touch with people.

If you’d like to join our mailing list and receive invites to events near you, let us know. You can also join over 1,000 of your peers who keep up-to-date with The 500 Club on our LinkedIn page.

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