Firms exploited PPE demands with the onset of the pandemic. Two scam companies falsely claimed to supply personal protective equipment (PPE) and received £180,000. Before getting caught, CK Sales received £80,000 from local councils and a £50,000 loan. Lambden Smart Solutions also acquired a £50,000 loan, despite being registered at a non-existent address.
The firms were “systematically defrauding taxpayers” and claimed to supply PPE, which was in great demand when the pandemic hit. However, there existed no evidence that any of these companies had ever traded despite their registration to addresses in Droylsden, Greater Manchester.
Talking of CK Sales, the landlord of the property had never heard of the company, while the address for Lambden Smart Solutions was non-existent. CK Sales fabricated the lease documents and bills and sent them to nearly 14 local authorities. They claimed to operate and sell PPE in their areas and also applied for the Small Business Grant Scheme. While most claims identify as scams, the company still ended up receiving £80,000 from many local authorities.
Despite their lack of eligibility, the two companies got £50,000 each from the Bounce Back Loan Scheme. There was evidence that both the firms were part of a larger nexus which included two more firms shut down last year for similar misconduct. These companies have been defrauding taxpayers by abusing financial support schemes established to aid genuine business in the pandemic.