Birmingham businessman tried to fraudulently claim £80,000 in Council Covid grants

A man who tried to fraudulently claim £80,000 in Covid business grants has narrowly avoided jail.

Birmingham-based Mirza Altaf Ali Baig made eight false Covid-19 Retail Hospitality and Leisure grant applications on commercial premises he owned in London.

But he was rumbled when some of his tenants also made legitimate claims. The Retail Hospitality and Leisure Fund was a government scheme to assist small businesses during the first Covid lockdown, which began on March 23 2020.

Under the scheme, businesses trading in the retail, hospitality and leisure sectors were entitled to one-off cash grants of up to £25,000 from their local council. He decided to take advantage of the scheme, making fraudulent claims between May and July 2020 under the names and identities of friend and associates, asserting that they were based at these eight units.

Any grant money would therefore have been directed to him, rather than being paid to the businesses in occupation at the time. This fraud only came to light when some of Mr Baig’s real tenants began making grant applications themselves.

Lambeth Council acted swiftly to stop four fraudulent claims before they were paid and referred the matter to the Counter Fraud team for investigation. Baig, 37, of Cambridge Way, in Acocks Green in Birmingham, pleaded guilty to one count of Fraud by False Representation in relation to these false Covid Claims.

At Southwark Crown Court, he was handed an 18-month suspended sentence, ordered to attend 150 hours of unpaid work and pay the council £6,000 in costs.

On sentencing Judge Perrins told Baig: “This was calculated, dishonest conduct at a time of national emergency, diverting funds away from people who genuinely needed it.

“Your fraud only came to light when legitimate tenants began making applications. Had you been successful, the situation would have been very different.”

Councillor David Amos, Lambeth Cabinet Member for Finance and Cost of Living, added: “The Covid pandemic was one of the biggest crises to hit this country for generations, and I’m proud that Lambeth came together to support the communities and businesses that needed our help the most.

“The Retail Hospitality and Leisure Fund was a lifeline for many of our local businesses, and it is sickening to know that it was seen by some as an opportunity to profit fraudulently. We’ll continue to rigorously investigate rigorously and pursue any allegation of fraud, to ensure that anyone who attempts to take advantage of the system is held to account.”