Helping companies recover their money
In July 2023 the Director of Business Energy Solutions, BES Commercial Electricity Limited and Commercial Power Limited, Andrew Pilley, former Fleetwood Town FC’s chairman, was sentenced to 13 years in prison at Preston Crown Court after being found guilty of fraud and money laundering totalling around £15 million.
Andy Pilley 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.
The fraud worked through a telesales operation – described by the judge as “a salesforce of cold-calling liars and manipulators” – which was run by companies that appeared to be independent with Lee Qualter as the sole director, but were actually controlled by Andy Pilley and his sister Michelle Davidson, who were the directors of the BES energy supply companies. The sales companies then targeted small businesses and charities – including guest houses, a children’s cancer charity and companies providing support services for disabled people – as they moved into new premises or contracts were up for renewal.
During the trial the court was told that Andy Pilley was a leading figure of what National Trading Standards called a “web of interconnected companies that misled innocent small businesses across the UK”. It was found that Pilley, his sister Michelle Davidson and two other associates; Lee Qualter and Joel Chapman conned and/or encouraged others to con small business owners, locking them into signing long-term energy contracts between 2014 – 2016.
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 contracts as well as the competitor rates. The customers were then transferred to another sales representative who read through the terms and conditions and confirmed the agreement, thereby making it a verbal contract. As this was a business to business contract, there is no requirement for a “cooling-off” period.
Customers were lied to and told that the sales team were independent of the supply companies with businesses paying tens of millions of pounds. In truth, Andy Pilley owned the companies.
Between 2010 – 2015 BES companies turnover grew from £15 million to £75 million and by 2019 it was over £100 million.
It is apparent that BES is not alone in this conduct. More recently Ofgem finalised its decision to levy a financial penalty of £1 million on Hudson Energy Supply UK Limited (HES) for non compliance with specific standard licence conditions related to its electricity supply licence (SLCs). Breaches included obligations regarding fair trading of business consumers (MBCs), identification of MBCs, notification of contract terms and billing based on meter readings.
HES admitted to breaching several SLCs, attributing the violations to its arrangement with a third party that acquired the customers for HES.
Notably, HES was acquired by Shell in October 2019 and according to the energy regulator, the breaches occurred from 2015 – 2020 with the arrangement concluding in July 2020.
Phoenix Legal representing BES victims
Local firm Phoenix Legal Limited are already acting on behalf of over 150 BES customers in respect of this widespread fraud and mis-selling by some Energy companies. We have clients who have been hit with such huge bills that they have had to close their businesses down.
Alisha Butler of Phoenix Solicitors said:
“In a time when there is an energy crisis everyone is putting or should be putting their energy contract under the microscope. The time limit for people to join the group claim remains open and anyone who has been a customer of any BES company, HES or any other company they feel may have mis-sold them their energy contracts from 2014 onwards should get in touch with our specialist team to see if they can bring a claim. We know that compensation will not bring our clients businesses back, but this is another scandal in which big companies are taking advantage of small business owners and we have to do something. Nothing is going to stop people from taking advantage of others to make money, but there has to be some recompense for those that have been affected. We hope that we can get them back some of what they had to pay out”.
Join the claim
If you or anyone you know would like to discuss your energy contracts and any possible mis-sold contracts, get in touch by emailing ab@phoenixlegalsolicitors.co.uk or call 0151 306 3694
Read the full article: Wirral Life