A group of fraudsters managed to steal a total of £195,000 in government grants by pretending to run a group of businesses, including a Greggs bakery.
Rochdale, St Helens, and Thurrock councils all provided money to Rais Kayani after a number of false applications were made for the Small Business Grant Fund.
The councils were defrauded out of £75,000, £35,000, and £85,000 respectively within the space of just five days, with those responsible later transferring a large proportion of the funds to America and Hong Kong.
Between the period of 4 May and 9 May 2020, fraudsters impersonated the popular high street bakery chain Greggs in order to secure cash from St Helens council.
A court heard that genuine business rate account numbers were used by the group in order to support the false applications, with thousands of pounds in funds then awarded to fraudsters by the local authority.
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Investigators were unable to discover exactly who submitted the applications. They were, however, able to track the payments to an account for a company based in Luton, Beds, called RAK Traders and Services Ltd.
Rais Kayani, 31, was revealed as the sole director of the company, and bank statements from the business account showed that a total of £195,000 had been received from the three different local authorities in the corresponding period.
A few days after the money was paid into the account by the various councils, statements show £100,000 leaving on 12 May to an American account.
Shortly afterward, $47,500 was transferred from the American dollar account to another bank account, this time in Hong Kong.
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Appearing at trial at Southwark Crown Court, Kayani plead guilty to a single charge of entering into a money laundering arrangement and was given a 16 months jail term, suspended for 18 months.
A suspended sentence is served in the community rather than in prison and is designed to allow the offender probation and rehabilitation.
The Crown Prosecution Service has since recovered £155,000 of taxpayer’s money and is seeking a confiscation order to retrieve the rest.
Speaking after sentencing, Ben Reid of the CPS said: “At a time of national emergency during the COVID-19 crisis, vast government funds were released to support struggling businesses across the country.
“Kayani was the cynical beneficiary of a series of false applications to local authorities in different parts of the country from where his business operated.
“Having dishonestly benefitted from the fraudulent applications for the Small Business Grant Fund, he transferred the proceeds overseas.
“We have already recovered £155,000 of taxpayer’s money and will now seek a confiscation order for the remaining funds.”
Award-winning cocktail bar in Manchester announces shock closure
Daisy Jackson
Red Light, a Manchester cocktail bar that’s been named as one of the best in the UK, has announced its shock closure.
The beautiful bar on the cobbled Little David Street has said that ‘this Pride will be our last’, with the doors set to close for good on Sunday.
Red Light opened its doors at Kampus in 2023, an inclusive space with great drinks, events, and DJs.
The bar was the brainchild of Deana Ferguson, an adopted Manc originally hailing from Belfast, who created a cosy, welcoming space with a fantastic martini.
But now, the Red Light team have announced that they have just days remaining in their home.
They wrote that ‘sustained financial headwinds’ are partly to blame, along with the challenges presented by operating a late-night venue in a residential area.
Red Light in Manchester has announced its closureThe beautiful bar is on Little David Street at Kampus in Manchester
In a heartbreaking statement, Red Light wrote: “For so many years, this bar has been more than a place to drink. It has been a home, a dance floor, a refuge, and a place where people could find friendship, freedom, love, and themselves.
“We are immensely proud of the community that has grown within these walls, and grateful to every person who has been part of it.”
The statement went on to thank the DJs, performers, neighbours and friends who ‘made this bar what it was’.
Red Light added: “We want our final Pride to celebrate everything we have created together. Come raise a glass, fill the dance floor, and help us give this place the joyful, unapologetically queer farewell it deserves.
“We hope to see you over the weekend, for one last Pride together.”
Viral Manchester doughnut window serving ‘spaghetti ice cream’ to close down
Daisy Jackson
Baby Mayhem, a dessert hatch in Ancoats serving fluffy filled doughnuts, has announced it’s closed for good.
The brand shot to fame with its baked-fresh-daily treats, which customers could have topped with ‘spaghetti ice cream’ and cheesecake filling.
For a year and a half, they’ve had consistent queues for their doughnut ice cream sandwiches and coffees, and become one of the most viral traders in Greater Manchester.
But now Baby Mayhem’s doughnut window in Ancoats is closing for good, with its founder James Turner citing a rise in rent and ongoing building works among the reasons for its closure.
He said that it’s become ‘increasingly difficult’ to operate the site, with the wider building undergoing construction work, telling followers that he’s only been able to open seven days out of the last eight weeks.
He’s also said that there is a ‘proposed increased rent’ looming, forcing him to close the Ancoats hatch for good.
But it’s not the end of Baby Mayhem as a brand, with a unit outside the Etihad Stadium, pop-ups planned at the Joie stadium, another term at Manchester Metropolitan university, and more appearances around town.
He also dropped a hint at a certain Christmas Market…
James will close the Baby Mayhem doughnut window in AncoatsBaby Mayhem’s fluffy doughnutsCredit: The Manc Group
In a statement, James said: “After an incredible year and a half, we’ve made the really difficult decision to close the Baby Mayhem hatch – for now.
“Over the past few months, ongoing building works have left much of the site under construction, making it increasingly difficult for us to operate consistently. We’ve only managed to open seven days in the last 8 weeks.
“The works have also had a huge impact on our kitchen, making it impossible to create our desserts to the standard we expect from Baby Mayhem. Alongside the disruption and proposed increased rent, continuing to operate from the hatch simply isn’t sustainable right now.
“But one thing is certain – this is not the end of Baby Mayhem.
“Over the last 18 months, we’ve been lucky enough to build a wonderful relationship with Manchester City FC and that’s something we’re incredibly proud of. That relationship continues to grow, with our unit outside the stadium, we will have pop ups at the Joie stadium for all the WSL home games, and also popping up at Kids Fanzone at every Manchester City home game.
“We’ll also be back at Man Met for another term of Baby Mayhem Burger, with more pop-ups around the city, a few festivals still to come and of course, we love a Christmas market.
“Sometimes in business you have to take one step back to take two steps forward.
“For now, the hatch is closing – but Baby Mayhem isn’t. To everyone who has supported us over the last year and a half, thank you.
Georgina Pellant -
5th July 2023 
