Two sentenced for running unregistered children's homes in first-of-its-kind prosecution

Catalyst Care Limited and its directors, Davidson Lynch-Shyllon and Miriam Ekathor, pleaded guilty to carrying on and/or managing illegal children’s homes at Croydon Magistrates’ in March this year.

The couple have now been handed fines totalling £92,400 for operating three unregistered homes between October 2022 and April 2025, providing accommodation for nine children.

They were also ordered to pay victim surcharges totalling £2,960 and costs of £17,250.

Lynch-Shyllon and Ekathor were also disqualified from carrying on and/or managing or having a financial interest in a children’s home.

The company reportedly received over £1.7m from local authorities.

All children’s homes in England must register with Ofsted, and carrying on or managing a home without registration is a criminal offence.

According to the Government, the pair were repeatedly warned by Ofsted that they were breaking the law, yet continued operating contrary to the legal requirements for registration. The Government also reported that the prosecution is the first of its kind.

His Majesty's Chief Inspector, Sir Martyn Oliver, said the prosecution marked an important milestone and that the Government was determined to make "increased use of prosecutions" to tackle offenders.

"We are currently consulting on proposals to downgrade local authorities who commission these illegal homes," he said.

Children and Families Minister, Josh MacAlister, added: "This prosecution is a welcome start to our wider crackdown on illegal children’s homes, and we have given Ofsted new powers to issue fines under the Children’s Wellbeing and Schools Act.

"Vulnerable children deserve to be safe and properly cared for, and I want to see more action of this kind. This case should send a clear signal to anyone running an illegal children’s home: the law will catch up with you, and you will face consequences."

Ofsted has recently been granted new powers through the Children’s Wellbeing and Schools Act to help tackle illegal children’s homes.

They include the introduction of financial penalties, which will allow Ofsted to issue fines to illegal children’s homes.

Ofsted is also expanding its Unregistered Social Care team to identify and investigate unregistered providers and pursue enforcement action, including prosecuting, where necessary.

Adam Carey