A recruitment consultant who fraudulently abused the UK government’s Covid-19 support scheme has been sentenced after misappropriating tens of thousands of pounds meant to help struggling businesses survive the pandemic.
Rico Iheagwara, 36, of River Meads, Stanstead Abbotts, Hertfordshire, received an ’18-month prison sentence, suspended for 18 months, at St Albans Crown Court on Friday, 16 May 2025′.
He pleaded guilty to ‘fraud by false representation’ after unlawfully securing ‘two £20,000 Bounce Back Loans’ for his dormant company, ‘SJR Recruitment Limited’.
This was detailed in a Monday release obtained from the UK Home Office website.
Iheagwara’s fraudulent acts included applying for the loans from “two separate banks’, even though businesses were only entitled to ‘one Bounce Back Loan’ under the scheme.
His company was not trading at the time of the applications in June and July 2020, making the applications illegal from the onset, all these were according to the release.
‘Rico Iheagwara blatantly abused a taxpayer-backed scheme designed to support genuine small businesses through the pandemic.
‘He knew he was not entitled to support yet continued with his fraudulent applications nonetheless’, said David Snasdell, Chief Investigator at the Insolvency Service.
Court records revealed that Iheagwara falsely claimed a turnover of £82,000 for SJR Recruitment Limited—despite the fact that the company had no business activity at the time.
Investigators found that the company’s bank accounts were opened only in May 2020, shortly before the fraudulent applications were submitted.
‘Iheagwara’s business was not trading at the time of his application’, Snasdell continued, ‘so he was not entitled to a single penny from the scheme, let alone the £40,000 he fraudulently secured’.
Evidence presented in court showed that the first £20,000 loan was ‘immediately transferred into Iheagwara’s personal account’ on the same day it was received.
The second loan was similarly diverted the day after it hit the account. None of the money was used to support the business.
‘Instead, bank statement analysis showed the funds were spent on everyday expenses, paying off personal debts, and transferred to various family members, the Insolvency Service disclosed.
In interviews, Iheagwara admitted that he used the money for ‘rent, personal finance, and to support his children’, stating that the funds were needed for his household obligations.
In addition to the suspended sentence, the court ordered him to complete 120 hours of unpaid work and undergo 15 days of rehabilitation activity as part of his punishment.
SJR Recruitment Limited, where Iheagwara served as sole director since its incorporation in January 2017, was eventually placed into liquidation in April 2021, with liabilities exceeding £67,000. No repayments were made on either of the Bounce Back Loans.
‘Tackling Covid support scheme abuse remains a key priority for the Insolvency Service.
‘We will not hesitate to prosecute fraudsters such as Iheagwara who stole from the public purse during a national emergency’, Snasdell emphasized.
Meanwhile, the Insolvency Service also confirmed in the release that it is actively pursuing the recovery of the misappropriated funds under the Proceeds of Crime Act 2002.
