Two companies, Ledbridge Consultants Limited and Montague Partners Ltd, have been shut down by the High Court after fraudulently obtaining more than £1 million in government Covid support loans. The court’s decision follows an investigation by the Insolvency Service, which uncovered the companies’ fraudulent activities, including misuse of Covid support schemes and unlawful use of individuals’ identities.

The companies, with registered offices in Birmingham and London, were wound up on Tuesday, 10 September, after investigations revealed that neither had engaged in genuine business activities. Instead, they served as fronts to secure significant sums of taxpayers’ money intended to support businesses through the pandemic.

Ledbridge Consultants and Montague Partners each falsely obtained £50,000 under the Bounce Back Loan scheme, the maximum amount available through the programme. Additionally, Montague Partners received £1.5 million from the Future Fund, a government Covid support scheme, by using the names of three other companies.

According to the Insolvency Service, the funds deposited into Montague Partners’ account were quickly paid out to 35 individuals, with ten beneficiaries receiving more than £75,000 through numerous smaller transactions. Similarly, the £50,000 Bounce Back Loan received by Ledbridge Consultants in May 2020 was disbursed to various individuals and companies within weeks, leaving the company with nothing in its account by the following month.

Despite their lack of genuine trading activity, both companies filed suspicious financial accounts. Ledbridge Consultants reported a remarkable increase in net assets of £13.4 million within six months in 2021, while Montague Partners declared net assets of £2.2 million in November 2020, compared to just £1 in the previous year.

The investigation also revealed that both companies unlawfully used personal data from individuals who had applied for jobs online, registering them as directors, shareholders, or investors without their knowledge or consent. This data was then used to file fraudulent documents with Companies House.

Cheryl Lambert, Chief Investigator at the Insolvency Service, commented on the seriousness of the case:
“Taxpayers’ money from Covid support schemes was drained from company bank accounts, and no evidence was provided that the funds were ever used for the businesses themselves. The allegations against Ledbridge Consultants and Montague Partners were extremely serious, which is why it was important for us to apply to stop them from trading with immediate effect.”

Both companies failed to cooperate with the Insolvency Service, preventing investigators from identifying those in control or the purpose of significant payments made from their bank accounts.

The Official Receiver has now been appointed as liquidator of both companies. All enquiries regarding the affairs of Ledbridge Consultants and Montague Partners should be directed to the Official Receiver at the Public Interest Unit:
16th Floor, 1 Westfield Avenue, Stratford, London, E20 1HZ. Email: [email protected].