EcoReporter: Bogus Firms Registered to 16 Addresses in One Worksop Street

Neighbours in a Nottinghamshire street have been shocked to discover their addresses have been used by a bogus company director to set up fake firms. Sixteen addresses on the same road in Worksop were among scores used across the country to register new companies over one weekend. All of them have been set up in the name of a non-existent 23-year-old Chinese man called Rong Yang.

Graham Barrow, a financial crime expert, described this fraud as “scandalous.” He explained that criminals are exploiting the fact that firms can be registered to any address in the UK using the government’s Companies House website without proof of identity. This allows them to establish sham firms to launder money, open bank accounts, and obtain loans and overdrafts they have no intention of repaying.

The government has acknowledged the issue and is in the process of changing the law to require verification of identity for setting up a business with Companies House. The aim is to prevent “criminals, kleptocrats or terrorists” from abusing the system.

The residents of Worksop discovered the fraud when letters from Companies House arrived at their homes congratulating Rong Yang on setting up various firms, including private security companies, trailer parks, and demolition contractors. They expressed shock and disbelief that their addresses had been used for such fraudulent activities.

Graham Barrow observed multiple companies being registered to Rong Yang in real-time in Worksop, Leicester, Luton, and Harpenden. He described it as the most extreme example of abuse of Companies House that he has ever seen. Barrow emphasized the need for stricter company registration rules to prevent such scams.

Fraudsters often use stolen credit cards to pay the £12 registration fee for the online process, which takes about 20 minutes. In 2022, there were 775,000 companies registered with Companies House, and it is estimated that 20% of them (155,000) were fake.

People affected by this fraud can apply for a court order to remove their address from the companies associated with Rong Yang, but this process can be costly, with fees of up to £400.

Business Minister Kevin Hollinrake apologized to the residents of Worksop and assured them that legislation is being prepared to address this issue. He emphasized the importance of making the UK a safer place for businesses by preventing address fraud.