A charity, which supports children with disabilities, has had over £29,000 in stolen funds returned after falling victim to a devastating fraud set up in Leicestershire that threatened its very existence.
The funds lost by Southway Playcare, were recovered following an investigation by Leicestershire Police and a court order granted by Leicester Magistrates’ Court under the amended Proceeds of Crime Act (POCA), now strengthened by the Economic Crime and Corporate Transparency Act. The updated legislation allows money obtained through fraud and economic crime to be returned more swiftly to victims.
Picture credit: Pukaar News
The fraud targeted the charity during a critical purchase: an accessible minibus intended to transport children, many of whom use wheelchairs, on day trips and residentials. Using money from grants and donations, the charity was in the process of paying for the vehicle when criminals intercepted email communications and issued a fraudulent invoice.
Unknowingly, the charity paid over £29,000 into a bank account registered to a fake business—Red Kite Vehicle Minibus Limited—set up to mimic a legitimate company. When investigators traced the account, it had recently received a large deposit, triggering further scrutiny. The company’s business address was found abandoned, and it became clear that the entire operation was a front for payment diversion fraud.
The loss of the funds had a catastrophic impact on Southway Playcare’s ability to operate. Hayley Newcomb, the charity’s manager, described the emotional and practical fallout:
“The impact this fraud had on our organisation and team morale is hard to put into words. The loss of this money meant that our charity has not been able to function properly and we have been unable to take children who use wheelchairs out on activities. Not only has this impacted the service users of our charity, but also our employees have felt the pain and upset of this financial loss personally. Had Leicestershire Police not recovered these funds, we likely would have folded. The relief we feel now that the burden of this financial worry has been lifted, is unexplainable.”
Rachael Gill, a financial investigator who supported the charity, emphasised the importance of the legal changes: “This case demonstrates how the new legislation can directly benefit victims. The impact on Southway Playcare was devastating, and I’m proud we were able to help secure the return of their funds.”
Paul Wenlock, head of the Economic Crime Unit, added: “Before this legislation, victims often struggled to reclaim what was rightfully theirs. Now, civil proceedings offer a faster route to justice for victims like Southway Playcare, who deserve to be at the heart of our efforts.”
