Businesswoman Sentenced to 2 Years 3 Months for £216,250 Covid Loan Fraud

Rupali Wagh, 50, of Harrison Way, Cardiff, was sentenced to 2 years and 3 months imprisonment at Merthyr Tydfil Crown Court on July 17. Wagh pleaded guilty to five counts of fraud at Cardiff Crown Court in November 2025. The charges stemmed from her fraudulent applications for £216,250 through the UK government's Bounce Back Loan Scheme. Wagh's first fraudulent application was in early May 2020, when she applied for a £16,250 Bounce Back Loan for One2Four Accounting Ltd. However, the company only had a turnover of £39,000 in the previous calendar year, and Wagh declared a higher turnover to secure more funds. The Insolvency Service said Wagh's other applications were for Talensetu UK Ltd, White Coconut Ltd, and Indian Canteen Ltd. In these applications, Wagh claimed higher turnovers than what her companies actually earned. She then used the loan funds to pay off her personal debts and purchase stocks and shares. Wagh attempted to shift responsibility during the investigation by initially blaming a third party for making the loan applications. However, she later admitted to acting alone. The Insolvency Service is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002.

Wagh systematically targeted a scheme designed to help genuine businesses survive the pandemic. She lied about her turnover, obtained duplicate loans for the same businesses, and used the funds to pay off personal debts and buy stocks and shares. When confronted with the evidence, Wagh initially tried to blame someone else before admitting she had acted alone.

Wagh's conviction brings her total sentence to 2 years and 3 months imprisonment. She will be required to serve her time in a prison in the UK.

The Insolvency Service remains committed to bringing Covid fraudsters like Wagh to justice, no matter how long it takes. The Service will continue to investigate and prosecute individuals who have committed fraud under the Bounce Back Loan Scheme.

The UK government's Bounce Back Loan Scheme was designed to provide financial support to small businesses during the pandemic. The scheme allowed businesses to borrow up to £50,000 without the need for a formal credit check. However, like in Wagh's case, some individuals took advantage of the scheme by making false loan applications.

The case of Rupali Wagh serves as a reminder that fraudsters will be caught and prosecuted. The Insolvency Service will continue to work to recover funds that were obtained through fraudulent means.

Wagh's first fraudulent application was a £16,250 loan for One2Four Accounting Ltd. The application was made in early May 2020, and Wagh declared a turnover of £65,000 for the company. However, the actual turnover was only £39,000.

In another instance, Wagh made a £50,000 loan application for Talensetu UK Ltd. The application was made in June 2020, and Wagh declared a turnover of £218,000 for the company. However, dormant accounts filed by the company for the period June 2019 to June 2020 showed that it was not trading.

Wagh made other fraudulent applications for White Coconut Ltd and Indian Canteen Ltd. In these applications, Wagh claimed higher turnovers than what her companies actually earned. She then used the loan funds to pay off her personal debts and purchase stocks and shares.

The Insolvency Service has been investigating Wagh since 2020. The investigation found that Wagh made multiple false loan applications and used the funds for personal gain. Wagh's case highlights the need for stricter measures to prevent fraud under the Bounce Back Loan Scheme.

The UK government's Bounce Back Loan Scheme was a vital lifeline for small businesses during the pandemic. However, the scheme also created opportunities for individuals to commit fraud. Wagh's case is a reminder that fraudsters will be caught and prosecuted.

The Insolvency Service is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002. The Service will continue to work to recover funds that were obtained through fraudulent means. Wagh's case highlights the importance of verifying the accuracy of loan applications.

Wagh's sentence brings her total term to 2 years and 3 months imprisonment. She will be required to serve her time in a prison in the UK. The Insolvency Service remains committed to bringing Covid fraudsters like Wagh to justice, no matter how long it takes.