An illegal children’s home provider has become the first in England to be successfully prosecuted by Ofsted after operating three unregistered homes in Kent while receiving more than £1.7 million in public funding. Catalyst Care Limited and its two directors, Davidson Lynch-Shyllon and Miriam Ekathor, were convicted following a criminal investigation by Ofsted into the operation of unregistered children’s homes between October 2022 and April 2025. The company and its directors pleaded guilty to all charges at Croydon Magistrates’ Court on 9 March 2026. On 4 August 2026, they were fined a combined £92,400, ordered to pay £2,960 in victim surcharges and £17,250 in prosecution costs. The pair have also been disqualified from carrying on, managing or having a financial interest in a children’s home.
Nine vulnerable children housed illegally
The prosecution related to three unregistered children’s homes in Kent, where nine children had been accommodated. Ofsted said the directors repeatedly ignored warnings that they were breaking the law and continued operating despite being told they required registration. During that period, the homes received more than £1.7 million from local authorities placing vulnerable children into their care.
Serious safeguarding concerns
All children’s homes in England must be registered with Ofsted. Operating or managing an unregistered children’s home is a criminal offence because such settings operate outside independent regulation and inspection. Ofsted warned that children placed in illegal homes have no guarantee that staff have been properly vetted, living conditions are safe or appropriate, or that providers can be held accountable if things go wrong. The watchdog said many children placed in illegal settings have some of the most complex care needs.
Landmark prosecution
The case marks the first successful criminal prosecution of its kind by Ofsted. The regulator said investigations into illegal children’s homes are often complex and require a high legal threshold before charges can be brought. Ofsted added that the number of illegal providers has grown partly because there are insufficient registered homes in suitable locations and with appropriately skilled staff to care for children with complex needs. It also warned that some illegal providers exploit pressures on the care system by charging local authorities excessive fees.
New powers to tackle illegal providers
Ofsted recently received additional enforcement powers through the Children’s Wellbeing and Schools Act, including the ability to issue financial penalties to operators of illegal children’s homes. The regulator said increased government funding will allow it to expand its Unregistered Social Care team to identify illegal providers and pursue enforcement action, including prosecutions where appropriate. It is also consulting on changes to inspections of local authority children’s services, including proposals that councils using illegal children’s homes could receive lower inspection ratings.
Ofsted: “Children deserve safe care”
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.”
Minister welcomes conviction
Children and Families Minister Josh MacAlister described the prosecution as an important step in tackling illegal children’s homes. He 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.”
