In May, Andrew Pilley, a 52-year-old resident of Thornton Cleveleys, was found guilty on four counts of fraud connected to the mis-selling of energy contracts. The fraudulent activities occurred between 2014 and 2016 and were carried out through sham company structures associated with Business Energy Solutions Ltd, BES Commercial Electricity Ltd, and Commercial Power Ltd. Pilley and his associates targeted small business owners, deceiving them into signing long-term energy contracts.
As a result of the fraudulent practices, Pilley has been sentenced to 13 years in prison and has been disqualified from being a director for 13 years. The charges he was found guilty of include two counts of fraudulent trading, involvement in facilitating criminal proceeds from fraudulently mis-sold energy contracts, and fraud by false representation.
Additionally, Michelle Davidson, another individual involved in the scheme, received a six-year prison sentence and a nine-year disqualification from being a director.
Lee Andrew Qualter, who participated in fraudulent trading, was sentenced to seven years in prison and disqualified from being a director for nine years.
Joel Chapman received an eight-month prison sentence for fraud by false representation.
What did the scheme entail?
The fraudulent scheme operated through a telesales operation, described by the judge as a “salesforce of cold-calling liars and manipulators.” This operation was run by seemingly independent companies, but in reality, they were controlled by Pilley and his sister Michelle Davidson, who served as directors of the BES energy supply companies.
These fraudulent entities targeted small businesses, including bed and breakfasts, hair salons, sandwich shops, small hotels, dog groomers, and even charities, such as one supporting child cancer victims. Many of these businesses were coerced into ruinous contracts that led some of them to financial ruin.
Even those who did not sign up for their services were not spared. Some received unexpected demands and harassing phone calls from various numbers, making up to 20-30 calls per hour for days. The conduct of BES was exposed by The Mail on Sunday back in 2010.
Jail for 13 years
This month, Pilley, now 53, was sentenced to 13 years in prison following an eight-month trial at Preston Crown Court. One of the victims, McLeod, expressed relief and elation at the conviction, as Pilley’s actions had devastated his life, causing financial loss, stress, and health issues. McLeod lost his wife, his business, and was declared bankrupt, incurring losses of at least £160,000.
To silence critics, Pilley made three unsuccessful attempts to take legal action against small business owners who had set up a blog to share their experiences and help others complain about the fraudulent activities to the authorities.
Evidence revealed that most energy contracts sold by the telesales companies ended up with Pilley and Davidson’s BES companies. Over the years, the BES companies experienced substantial growth in annual turnover, reaching over £100 million by 2019.
The sentences were the result of an investigation and successful prosecution by the National Trading Standards Regional Investigation Team (North West). Previous warnings and investigations by enforcement bodies, including Blackpool Trading Standards and Ofgem, had prompted this criminal investigation.
During the sentencing, His Honour Judge Knowles KC expressed his disapproval of the scheme, stating that the “cold-calling liars and manipulators” had deceived numerous honest business owners into costly and lengthy energy contracts for their gas and electricity leaving them struggling to pay the bills.
Pilley was previously the owner of fleetwood town football club,
What is energy mis-selling?
Energy mis-selling refers to deceptive or fraudulent practices by energy suppliers or sales agents when selling energy contracts to consumers, businesses, or organizations.
It involves providing misleading information, using high-pressure sales tactics, or misrepresenting the terms and conditions of energy contracts to persuade customers to sign up for services that may not be suitable for their needs.
Common tactics used in energy mis-selling include:
- Misleading Information: Energy sales agents may provide false or misleading information about the contract’s pricing, terms, or potential savings to entice customers into signing up.
- High-Pressure Sales Tactics: Sales representatives may use aggressive or pushy tactics to pressure customers into making quick decisions without fully understanding the implications of the contract.
- Hidden Fees and Charges: Mis-selling may involve failing to disclose additional fees or charges associated with the contract, leaving customers with unexpected costs.
How to spot energy mis-selling contracts?
Spotting energy mis-selling contracts requires vigilance and attention to detail. Here are some key tips to help you identify potential mis-selling:
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High-Pressure Sales Tactics: Be cautious if the sales representative uses aggressive or pushy tactics to make you sign up quickly. Mis-selling often involves pressuring customers into hasty decisions.
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Misleading Information: Watch out for any misleading or false statements made by the salesperson. They might provide inaccurate information about contract terms, prices, or savings.
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Hidden Fees and Charges: Scrutinize the contract for hidden fees and charges that were not disclosed during the sales pitch. Pay attention to any additional costs that might surprise you later.
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Unsolicited Calls or Visits: If you receive unsolicited calls or visits from energy sales representatives, be cautious. Legitimate energy providers typically do not engage in such practices.
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Cooling-off Period: Business energy contracts usually have a cooling-off period, during which you can cancel the agreement without penalty. Ensure that the salesperson informs you about this period and your rights.
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Compare Offers: Always compare energy offers from different suppliers before making a decision. If a deal seems too good to be true, it might be worth investigating further.
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Understand the Terms: Take the time to read and understand the terms and conditions of the contract before signing. If anything is unclear, seek clarification from the salesperson or the supplier.
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Verify the Supplier: Ensure that the energy supplier and the salesperson are authorized and registered with the appropriate regulatory authorities. Check their credentials and legitimacy.
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Ask for Documentation: Request written documentation of the contract details, including the terms, prices, and any promises made during the sales pitch.
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Research the Company: Look up reviews and ratings for the energy supplier and the sales company. Check if there have been any complaints or reports of mis-selling.
For more on mis-selling, visit: https://www.energybrokers.co.uk/news/electricity/energy-mis-selling-how-much-are-you-due