Conmen 'cash in' on Covid business grants in Sandwell
Fraudsters cashing in on the Covid-19 crisis have tried to steal over £250,000 from the public purse in Sandwell, council bosses have said.
Fraud officers say criminals have targeted grants to small businesses in the retail, hospitality and leisure sectors introduced by the Government and paid out by local authorities.
An update to Sandwell’s Audit and Risk Assurance Committee says the constant changes in guidance on how money is paid out makes it easier for swindlers to cash in.
Local authority bosses have said: "The council is open to fraud and misappropriation due to changes in legislation and the speed in which government grants need to be validated and distributed."
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The report shows that up till September, Sandwell has prevented 22 fraudulent claims for grants between £10,000 to £25,000 each.
In total, conmen tried to swindle £265,000 destined for businesses struggling with the lockdown and the changes in how they trade during the coronavirus crisis. But in two cases, £35,000 was paid out to fraudsters.
In February this year an investigation by Sandwell’s Counter Fraud Unit led to a private nursery owner being convicted for 15 offences of fraud.
Kaljit Randhawa, aged 33, of Inkberrow Close, Oldbury, had submitted false information to the council to access the Government’s Early Years and Nursery Education Funding schemes.
She stole £25,435 for youngsters who had never attended or had stopped attending her Little Genius Academy nursery in West Bromwich.
Following her conviction she was jailed for two years and four months at Warwick Crown Court.
Councillors will discuss the report at their meeting on September 17.
