A company and two directors have been fined for running unregistered children’s homes, in the first successful criminal prosecution of its kind brought by Ofsted.
Catalyst Care Limited and directors David Lynch-Shyllon and Miriam Ekathor have been fined £92,400 for running three unregistered children’s homes in Kent. They pleaded guilty to all charges at Croydon Magistrates’ Court on 9 March 2026.
The homes, which operated between October 2022 and April 2025, provided accommodation for nine children and received more than £1.7m from councils during the period.
While the company and its directors were fined over £92,000 on 4 August, they were also handed £2,960 in victim surcharges and £17,250 in costs.
Lynch-Shyllon and Ekathor were also disqualified from carrying on, managing or having a financial interest in any children’s homes. Ofsted said the pair were repeatedly warned about operating unlawfully, but they continued to do so.
New powers under the Children’s Wellbeing and Schools Act will allow Ofsted to issue fines directly to illegal providers. Backed by additional funding, the national regulator is also expanding its unregistered social care team to act against illegal children’s homes.
His Majesty’s Chief Inspector, Sir Martyn Oliver said: ‘It is heartbreaking that so many vulnerable children are placed in unregistered children’s homes where we have no assurance that they are safe or receiving the care they need and deserve.
‘This outcome marks an important milestone in our efforts to tackle illegal children’s homes and sends a clear message that operating outside the law will have consequences. We are determined to make increased use of prosecutions to tackle the offenders running these settings. We are currently consulting on proposals to downgrade local authorities who commission these illegal homes.’
Children and Families Minister, Josh MacAlister, said: ‘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.’
Photo: MChe Lee
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