Highlights

  • Indian-origin man convicted of fraud in UK
  • Man pleaded guilty of abusing govt scheme
  • Ordered to pay 2,150 pounds in court costs

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Vaghela was also ordered to pay 2,150 pounds in court costs. The Insolvency Service said he had repaid the loan in full before being sentenced.

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      UK: Indian-origin businessman sentenced to six months in prison for Covid loan fraud

      An Indian-origin businessman based in London has been sentenced to six months in prison, suspended for 18 months after pleading guilty to fraud by abusing the government’s COVID-19 Bounce Back Loan scheme, the UK’s Insolvency Service said on Friday.

      Rajesh Dhirajlal Vaghela, 46, from Stanmore in north London, received a 25,000 pounds loan before closing his business in an effort to avoid repaying the taxpayer loan.

      Vaghela was also ordered to pay 2,150 pounds in court costs. The Insolvency Service said he had repaid the loan in full before being sentenced.

      "Directors who abused the COVID-19 financial support schemes, which were provided by the government to support genuine businesses in need of help during the pandemic, have exploited taxpayers," said Peter Fulham, Chief Investigator of the Insolvency Service’s Criminal Investigation Team.

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