TWO companies that targeted Herefordshire Council with false applications for coronavirus bounce back loans have been wound-up at the High Court.

Local authorities across the country have handed out financial support during the pandemic. This has been a lifeline for countless businesses struggling as a result of trading restrictions.

However, these support packages have been targeted by fraudsters. Two separate companies, LV Distributions Ltd and SIO Traders Ltd, both submitted false documents to at least 41 local authorities, including Herefordshire Council.

Between them they wrongly claimed £230,000.

Herefordshire Council was twice targeted by SIO Traders. The council initially paid £10,000 after the first fraudulent application, but the counter-fraud team was able to act quickly and decisively to recover the funds in full,

before rejecting a second £10,000 application and reporting the company’s activities.

The council also received £10,000 application from LV Distributions, which was also rejected.

These prompt actions saved the council a total of £30,000 in fraudulent grant claims.

LV Distributions Ltd and SIO Traders Ltd were both wound-up in the High Court in separate hearings on July 27, 2021, following confidential enquiries conducted by the Insolvency Service. At the hearing, it was confirmed that

neither company had ever traded.

Jonathan Nelson, is the counter fraud officer at Herefordshire Council. He said: “Fraud is never a victimless crime. Every pound that is criminally obtained is a pound that cannot be spent where it is needed. 

"It is shameful that these two companies have sought to exploit funding that was intended to support our local businesses during the pandemic. 

“The council has shown through its actions that it takes these matters very seriously and that we have a zero tolerance approach to fraud”.

Ledbury councillor Liz Harvey, the county council’s cabinet member for finance, corporate services and planning, said: “We have spent more than a year allocating millions of pounds of financial support for local businesses who

have been affected by the pandemic. 

“To see companies trying to take advantage of this difficult and unprecedented situation, and fraudulently claim support that is intended to help those who really need it, is despicable. 

“Herefordshire Council will not tolerate fraud, and it is pleasing to see these two companies wound up.”