Two fake PPE companies that fraudulently took £180,000 from Covid-19 financial assistance schemes have been shut down.
CK Sales Ltd and Lambden Smart Solutions Ltd have been wound up by the High Court and the Official Receiver has been appointed liquidator of the companies.
Both companies purported to supply Personal Protective Equipment (PPE), which was desperately needed when the pandemic hit.
However, an Insolvency Service investigation found no evidence that either company had ever traded in the PPE supply market or any other area of business.
Both companies were registered at addresses in Droylsden, Manchester.
In the case of CK Sales the landlord of the address told investigators he had never heard of the company, while the address that Lambden Smart Solutions was registered at was found not to exist.
The Insolvency Service said that 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.
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 investigation was started following intelligence received through the National Anti-Fraud Network and as a result both companies have been shut down.
The Insolvency Service said there was evidence that both companies were part of a wider fraud network as the investigation identified links to SIO Traders Ltd and LV Distributions Ltd, which were shut down last year for fraudulently claiming Covid-19 financial support and also claimed to supply PPE, as well as medical products.
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