East London family claimed £150K in bogus Covid loans to pay for lavish lifestyle
An Ilford family who used £150,000 in bogus Bounce Back Loans (BBL) to fund their 'lavish lifestyle' during the Covid-19 pandemic have been sentenced. Kashid Rashid, 53, his wife, Noreen Malik, 46, nephew Rehaan Mohammed, 32, and brother Rizwan Haider, 61, set up or used a number of fake businesses to apply for government help.The group said they had been adversely affected by lockdown and claimed inflated annual turnovers to qualify for the maximum loan of £50,000 each time. The money was instead used to pay for house upgrades and private school fees, and sent to other family members and businesses they controlled.Voice notes recovered by the National Crime Agency (NCA) caught Rashid discussing the need to create false invoices to support the application. In July 2020, he had planned to purchase another company with the intention of claiming a further BBL.He told the owner he would pay £15,000 if they applied for the loan through their business account ahead of the sale. The owner decided not to proceed.The final of four applications was submitted by Mohammed but ultimately rejected because the company was dormant. NCA investigators discovered a second fraud based on documents found in Rashid's hire car.Fingerprint analysis identified that Patric Ciwinski, 36, had attempted to fraudulently set up a false universal credit claim in the name of Robert Wright. However, no funds were received before the fraud was uncovered.Rashid was also separately found to be fraudulently claiming universal credit in the name of an alias after failing to disclose he had a child and never having lived at the address he claimed. He was arrested in August 2020.NCA officers found that Rashid had legally changed his name nine times in ten years in order to frustrate financial institutes' abilities to run proper credit checks. Mohammed was arrested in April 2021 and declined to answer any questions in interview.Malik attended a voluntary interview with officers in June 2021, Haider attended in October 2022 and Ciwinski attended in December 2021. All declined to answer questions from officers.Rashid admitted one count of fraud by false representation in relation to the UC fraud but denied all other charges alongside his co-defendants. They were convicted by a jury at Southwark Crown Court after a five-week trial on November 28, 2025Rashid was sentenced to six-and-a-half years in prison at the same court on Friday, February 27. He has previous fraud convictions in the United States and Romania.Once he serves his sentence in the UK, he will be extradited to Romania to serve a further four-year prison sentence. Mohammed was handed three years behind bars for his role.Malik and Haider received a two-year sentence suspended for two years each, and Ciwinski was given a 12-month community order. Rashid, Mohammed, Malik and Haider were also disqualified from being company directors for set periods.Judge Hale said the group had 'deliberately exploited a government scheme which was set up to assist a national crisis', describing their offending as 'a systematic and repeated assault on the banks and the Bounce Back scheme'.Alistair Reid from the NCA said: "Bounce Back Loans were a vital tool for businesses to help them stay afloat and continue trading during the Covid-19 pandemic. However, this family saw it as an opportunity to exploit the system at a time when the country was facing unprecedented challenges."The money they fraudulently claimed was instead spent on their own lavish lifestyles – funding car payments, house renovations and private school payments. All the while, Rashid was also fraudulently claiming Universal Credit payments to further supplement his deceitful income."Fraud of this nature undermines trust in government initiatives, diverts essential funds away from genuine businesses and damages the integrity of financial systems. The effects are far reaching, beyond the immediate loss, ultimately harming local economies, jobs, and communities that strived to recover and rebuild from Covid lockdown."Got a story for MyLondon? Get in touch on rebecca.mcculloch@reachplc.com.Looking for more from MyLondon? Subscribe to our daily newsletters here for the latest and greatest updates from across London.
