- Owner of Fleetwood Town Football Club found guilty in complex fraud case
- Pilley’s sister and associates also found guilty at Preston Crown Court
- Sentencing confirmed for 3rd July 2023 at Preston Crown Court
Andrew Pilley, the owner of Fleetwood Town Football Club and a range of other businesses, will be sentenced on 3rd July 2023 following a hearing in Preston Crown Court today [Tuesday 23 May]. Pilley has been remanded in custody after he was found guilty of fraudulent trading, fraud by false representation and being involved in the acquisition, retention, use or control of the proceeds of fraudulently mis-sold energy contracts.
At the heart of the fraud was a web of interconnected companies that misled innocent small businesses across the UK. Through sham company structures associated with Business Energy Solutions Ltd, BES Commercial Electricity Ltd and Commercial Power Ltd, Pilley and his associates were responsible for targeting small business owners and deceiving them into signing long-term energy contracts between 2014 and 2016.
Following a complex and lengthy investigation the jury delivered its verdict on Friday 19 May 2023 at Preston Crown Court and found:
- Andrew Pilley, aged 52, of Wyre Road in Thornton Cleveleys, Lancashire, guilty of:
o Two counts of Fraudulent trading–including causing or allowing fraudulent mis-selling of energy supply contracts and concealing this from customers and Ofgem and/or the Energy Ombudsman
o Being concerned in an arrangement which facilitates the acquisition, retention, use or control of criminal property by another – namely the proceeds of fraudulently mis-sold energy contracts
o Fraud by false representation based on posts on MondaySavingExpert.com and Ise.co.uk which falsely purported to be made by customers and contained fabricated content
- Michelle Davidson, aged 49, of Holmefield Avenue, Thornton-Cleveleys, Lancashire, guilty of:
o Fraudulent trading
o Being concerned in an arrangement which facilitates the acquisition, retention, use or control of criminal property by another
- Lee Andrew Qualter, aged 52, of Holmefield Avenue, Thornton-Cleveleys, Lancashire, guilty of:
o Fraudulent trading
- Joel Chapman, aged 37, of Kingston Road, Willerby, Yorkshire, guilty of:
o Fraud by false representation
The fraud worked through a telesales operation run by companies that appeared to be independent with Qualter as the sole director, but were actually controlled by Pilley and his sister Michelle Davidson, who were the directors of the BES energy supply companies. The sales companies targeted small businesses and charities – including guest houses, children’s charities and companies providing support services for disabled people – as they moved into new premises or when their energy contracts were up for renewal.
In the initial ‘front end’ part of the call, the sales representative would lie about the contracts to persuade business owners to sign-up. The fraudulent mis-selling included false or misleading statements about the length and price of the contract as well as competitor rates. Business owners were then transferred to a different sales representative who would run through terms and conditions and confirm the agreement. This was a binding verbal contract and, because it was a business-to-business sale, there was no cooling off period. The fraud worked because the vast majority of customers didn’t realise they had been misled at the point of entering into the verbal contract.
Evidence shows that the majority of energy contracts sold by the telesales companies went to Pilley and Davidson’s BES companies. By 2014, the volume of business which was being placed with BES was 76%, rising to 86% in 2015 – with longer and more valuable contracts going to BES and the less valuable contracts going to other suppliers.
Between 2010 and 2015, annual turnover in the two BES companies grew from around £15 million to £75 million. By 2019, turnover was over £100 million and combined profits were between £2 million and £12 million.
The successful prosecution follows an investigation by the National Trading Standards Regional Investigation Team (North West), which is hosted by Cheshire West and Chester Council. The criminal investigation followed previous warnings and investigations from enforcement bodies, including Blackpool Trading Standards and Ofgem, before the current Trading Standards case began as a mis-selling investigation commenced by Lancashire Trading Standards in December 2013.
Lord Michael Bichard, Chair, National Trading Standards, said:
“Small business owners were deliberately deceived and locked in to contracts that were long-term and expensive, leaving many businesses struggling to pay the bills and sadly driving some business owners into making the difficult decision to cease trading.
“This is not a victimless crime – small business owners have lost vast sums of money to this fraud and many businesses have gone under. Legitimate businesses in the energy market have also lost out by missing out on energy contracts there were diverted to the BES companies.
“This has been a long and complex case and I would like to take this opportunity to thank and congratulate the Trading Standards officers involved for their commitment and perseverance to protect honest customers and safeguard legitimate businesses.”
Councillor Christine Warner, Cabinet Member for Homes, Planning and Safer Communities at Cheshire West & Chester Council, said:
“Using a number of businesses based in Blackpool, Bispham and Fleetwood, Pilley and his associates targeted small businesses across the Country with no regard to the damage of locking them into long-term energy contracts, based on false information would cause for their owners and employees.
“Thanks to a tireless investigation by the Trading Standards North West Investigation Team hosted by Cheshire west & Chester Council, the criminals behind the fraud have been brought to justice and stopped from defrauding even more businesses.
“This verdict is a testament to the persistence of the Trading Standards officers who pursued this investigation over several years and sends a clear message that these crimes will not be tolerated.”
Notes to Editors
For more information, please contact the National Trading Standards press office by emailing email@example.com or calling 020 7101 5013
Notes to Editors
The companies involved
The BES companies – Business Energy Solutions Ltd and BES Commercial Electricity Ltd.
Commercial Power Ltd, which claimed to operate as a separate aggregator company. It acts as an interface between brokers and suppliers. As with the BES companies, at all relevant times, Andrew Pilley and Michelle Davidson were the sole shareholders and directors. It is separate from the BES companies (ie. not a subsidiary) but at all relevant times it was in effective common ownership and control.
The sales brokers
Commercial Energy Ltd, Commercial Reduction Services Ltd and Energy Search Ltd, together with a handful of other companies, are businesses which are described by BES as their “strategic partners”. They purported to be independent. Legally, they were in separate ownership to BES / CP Ltd. However, the prosecution case is that they were in reality created and controlled by Andrew Pilley, Michelle Davidson and the BES / CP management team who worked for them.
About National Trading Standards
National Trading Standards delivers national and regional consumer protection enforcement. Its Board is made up of senior and experienced heads of local government trading standards from around England and Wales with an independent Chair. Its purpose is to protect consumers and safeguard legitimate businesses by tackling serious national and regional consumer protection issues.