A Wolverhampton councillor and his wife have been convicted of defrauding covid-19 business support funding from the authority.
Harman Banger, 40, and Neena Kumari, 38, of Bilston Road, Wolverhampton, were convicted of fraud by false representation following a seven-day trial at Wolverhampton Magistrates' Court on Friday, 17th December 2021.
Fraud by false representation is an offence under section 2 of the Fraud Act 2006. It has a maximum penalty of 26 weeks' custody and/or an unlimited fine on summary conviction; 10 years' custody and/or an unlimited fine on conviction on indictment.
The Crown's case, which was accepted by District Judge David Murray, was that Banger, who represents the East Park ward on Wolverhampton City Council, used knowledge acquired as a former Cabinet member in an attempt cheat the system of £10,000 in covid-19 bounce back funding.
In April 2020 the couple, who jointly-owned Pizza Plus on The Orchard, Bilston, submitted an application for funding to support the operation of the business since October 2019.
However, enquiries made by Wolverhampton City Council revealed that the premises was actually boarded up, in a state of disrepair and had no electricity supply during the period in question.
Despite the weight of evidence against him, Banger maintained that the business had been operational. Witnesses gave evidence confirming that they were regular customers of the establishment, but Banger was unable to produce financial documentation in support of the business's trading status.
Addressing Banger, the Judge said: "There was not a business and you did try to obtain the grant by false representation. Then you employed sophisticated methods to bolster your case that the business was open. I find you guilty."
Addressing Kumari about continuing with the "fiction" of the open business, he said: "It is your right not to give a comment at the police station or give evidence, but it gives the impression you would not have stood up to cross examination."
Clearly of the view that the Magistrates' Court had insufficient sentencing powers, the Judge sent the case to Birmingham Crown Court for sentencing.
The pair were granted unconditional bail until their sentencing on Friday, 14th January 2022.
Wendy Stephens, a prosecutor in the CPS Specialist Fraud Division, said: "As a trusted, elected official, Harman Banger abused his position of power alongside his wife Neena Kumari in order to de-fraud the public at a time of national crisis.
"Banger had a deep understanding of the eligibility of such covid-19 business support schemes and tried to exploit the system by claiming for a business that the pair knew was not eligible."
This is quite some case if, as it appears, Banger and Kumari have spun out a seven-day trial on the basis of such a wholly implausible, inconsistent and thoroughly unbelievable defence.
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