A United Kingdom based Nigerian man, Rico Iheagwara, has been sentenced to 18 months in prison for defrauding the British government’s Covid-19 support scheme of £40,000.
Iheagwara, 36, who lived in River Meads, Stanstead Abbotts, Hertfordshire, was sentenced at St Albans Crown Court on Friday, May 16, 2025. His sentence was suspended for 18 months, meaning he will not go to jail unless he commits another offence during that period.
He pleaded guilty to fraud by false representation after he illegally applied for two separate £20,000 Bounce Back Loans meant to help struggling businesses during the pandemic.
The UK Home Office said in a statement on Monday that the loans were taken through two different banks under his company, SJR Recruitment Limited, which was not operating at the time.
Investigators found that his company’s bank account was only opened in May 2020, just before he applied for the loans in June and July of that year. Court documents also showed that he falsely claimed the company had an annual turnover of £82,000.
“He knew he was not entitled to support yet continued with his fraudulent applications nonetheless,” said David Snasdell, Chief Investigator at the Insolvency Service.
“He was not entitled to a single penny from the scheme, let alone the £40,000 he fraudulently secured.”
According to evidence presented in court, the first loan was paid directly into Iheagwara’s personal account and spent the same day. The second loan was also transferred out the next day.
The Insolvency Service confirmed the money was used for personal expenses, debts, and sent to family members, not for any business purpose.
During questioning, Iheagwara admitted using the funds for rent, daily expenses, and to care for his children.
In addition to the suspended sentence, the court ordered him to complete 120 hours of unpaid community service and attend 15 days of rehabilitation activity.
His company, where he was the sole director since it was created in 2017, was closed down in April 2021 with debts of over £67,000. No repayment was made on either of the loans.
The Insolvency Service said it is working to recover the stolen funds under the Proceeds of Crime Act 2002.
“Tackling Covid support scheme abuse remains a key priority for the Insolvency Service,” Snasdell said. “We will not hesitate to prosecute fraudsters like Iheagwara who stole from the public purse during a national emergency.”
