A UK-based recruitment consultant has been sentenced for fraudulently obtaining £40,000 through the UK government’s Covid-19 support scheme.
Rico Iheagwara, 36, of River Meads, Stanstead Abbotts, Hertfordshire, was handed an 18-month prison sentence—suspended for the same period—by St Albans Crown Court on May 16, 2025. He pleaded guilty to *fraud by false representation*.
Iheagwara secured two £20,000 Bounce Back Loans from different banks for his dormant company, SJR Recruitment Limited, despite businesses being eligible for only one loan. The applications, made in June and July 2020, falsely claimed a turnover of £82,000, though the company had no trading activity and its bank accounts were only opened in May 2020.
According to the UK Home Office, none of the funds were used to support the business. Investigations showed that the loans were quickly transferred to Iheagwara’s personal account and used for rent, personal expenses, debt repayments, and transfers to family members.
David Snasdell, Chief Investigator at the Insolvency Service, said:
“Iheagwara blatantly abused a taxpayer-backed scheme designed to support genuine small businesses. He knew he wasn’t entitled to support but went ahead with the fraudulent claims.”
In addition to the suspended sentence, Iheagwara must complete 120 hours of community service and undergo 15 days of rehabilitation. His company, where he was the sole director since 2017, was liquidated in April 2021, leaving over £67,000 in unpaid liabilities, including the Bounce Back Loans.
The Insolvency Service confirmed it is pursuing recovery of the stolen funds under the Proceeds of Crime Act 2002, stressing that cracking down on Covid-related fraud remains a top priority.
