A Cardiff businesswoman has been sentenced to two years and three months in prison after fraudulently obtaining £216,250 through the United Kingdom government's COVID-19 Bounce Back Loan Scheme.
The Insolvency Service confirmed that Rupali Wagh, 50, of Harrison Way, Cardiff, secured the funds by submitting five fraudulent loan applications across four companies between May and September 2020.
According to investigators, Wagh inflated the turnover of her businesses, obtained duplicate loans for companies that had already received funding, and diverted much of the money to settle personal debts and purchase stocks and shares.
She pleaded guilty to five counts of fraud at Cardiff Crown Court in November 2025 before being sentenced at Merthyr Tydfil Crown Court on Friday, July 17, following an investigation by the Insolvency Service.
Fraudulent Loan Applications
The investigation revealed that Wagh's first fraudulent application was submitted in May 2020 for One2Four Accounting Ltd, where she claimed the company had an annual turnover of £65,000.
However, investigators found that the company's actual turnover for the previous year was only £39,000.
Shortly after receiving the £16,250 loan, Wagh reportedly transferred the funds into her personal bank account and used most of the money to clear debts and invest in stocks and shares.
She later secured a £50,000 loan for Talensetu UK Ltd, falsely claiming the company had a turnover of £218,000, despite official records showing it was not trading during the relevant period.
Investigators said she transferred the entire loan into her personal account within days and also sent more than £25,000 to an account in India.
Authorities further discovered that Wagh obtained another £50,000 loan for the same company after falsely declaring it had not previously benefited from the scheme.
She also fraudulently secured loans for White Coconut Ltd and Indian Canteen Ltd by exaggerating their turnover and making false declarations about previous applications.
Attempt to Shift Blame
The Insolvency Service said Wagh initially attempted to blame another individual during the investigation, claiming someone else had used her computer to submit one of the applications.
However, she later withdrew the claim and admitted she had acted alone.
She also acknowledged using the fraudulently obtained funds to pay off personal credit card debts and loans, arguing that reducing her personal financial burden would ultimately benefit her businesses.
Insolvency Service Reacts
Commenting on the conviction, David Snasdell, Chief Investigator at the Insolvency Service, said Wagh deliberately abused a scheme created to help struggling businesses survive the COVID-19 pandemic.
"Rupali 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.
"These are serious crimes, and the Insolvency Service remains committed to bringing COVID fraudsters like Wagh to justice, no matter how long it takes."
The Insolvency Service said it is now pursuing the recovery of the fraudulently obtained money under the Proceeds of Crime Act 2002.