Two fake companies that fraudulently took £180,000 from Covid-19 financial assistance schemes have been shut down.
CK Sales Ltd and Lambden Smart Solutions Ltd were registered at addresses in Droylsden, Tameside and claimed to supply personal protective equipment (PPE).
However, an investigation by the Insolvency Service found no evidence of either company ever trading in the PPE supply market or any other area of business.
Investigators said CK Sales fabricated false lease documents and utility bills and sent these to at least 14 different local authorities to claim they were a business operating in their area.
This enabled them to apply for grants under the Small Business Grant Scheme set up to support business during the Covid-19 pandemic.
Most were noticed to be fraudulent, but the company received £80,000 from several local councils before the scam was identified.
CK Sales was also not entitled to taxpayer funding through the separate Bounce Back Loan Scheme, but nevertheless secured a £50,000 loan.
Lambden Smart Solutions was similarly found to have received a £50,000 Bounce Back Loan to which it was not entitled.
When investigators visited the address where CK Sales was registered, the landlord said he had never heard of the company.
Meanwhile, the address that Lambden Smart Solutions was registered at was found not to exist.
Both CK Sales Ltd and Lambden Smart Solutions Ltd have now been wound up by the High Court and the Official Receiver has been appointed liquidator of the companies.
Dave Hope, Chief Investigator at the Insolvency Service, said: "These companies have been systematically defrauding taxpayers through their abuse of financial support schemes put in place to help genuine businesses during the pandemic.
"The Insolvency Service will not hesitate to step in and ensure sham companies like these are shut down by the courts."
The Insolvency Service launched an investigation after receiving intelligence through the National Anti-Fraud Network.
Investigators say they found evidence that both companies were part of a wider fraud network with links to SIO Traders Ltd and LV Distributions Ltd, which were shut down last year for fraudulently claiming Covid-19 financial support, as well as claiming to supply PPE and medical products.
