Two connected companies wound-up after abusing Covid support

The court heard Momz Love traded as a retailer selling children’s clothes online, as well as 3D printers and computing equipment from a physical shop - with Unique Homes Lettings acting as the retailer’s landlord - supporting the applications by falsely claiming to be the landlord of premises that Momz Love declared to councils it occupied.

Overall, Momz Love fraudulently secured at least £85,000 between June and August 2020 after five applications were successful.

Investigators also uncovered that Unique Homes Lettings fraudulently claimed to be the landlord of entities and used stolen cards to make payments to at least four local authorities towards business rates before asking for a refund to be paid into a different bank account.

The original transactions would fail and the local authority lost the money paid in the bogus refund. Using this method, those entities secured at least £8,000.

The two companies were formally wound-up on 26 April 2022 by Insolvency and Companies Court Judge Jones, who found that Momz Love and Unique Homes Lettings were involved in fraud.

The Official Receiver is the liquidator of both companies, which has a duty to determine what assets are available to realise on behalf of creditors, including the money secured by Momz Love and Unique Homes Lettings under false pretences.

Commenting on the news, the Insolvency Service’s chief investigator Lynda Copson said: “Through our investigations, it was clear that neither company conducted any legitimate trading activities and were maliciously used as vehicles to defraud local authorities across the country for loans they weren’t entitled to.

“Covid loans provided a vital lifeline to support viable businesses through the pandemic and we will continue to work with our partners to put a stop to companies who carry out fraudulent conduct.”