Essex Trading Standards prosecutes 7 in mis-selling probe

The victims were persuaded to buy the products through four companies who cold called them by telephone for a free system “health check”.

The firms turned over more than £6.5million during their mis-selling spree which took place over 19 months between 2016 and 2017.

Essex Trading Standards has now prosecuted seven people following its largest-ever investigation.

Green energy - the fraudsters mis-sold energy saving products to vulnerable elderly people

It found the companies grew from Smart Save Solutions Ltd, a solar panels company directed by Carl Smith, 37, of Clacton Road, Horsley Cross.

Trading then moved into Greenpowersolutions Ltd, Green Planet Advisory Ltd, Offgridplus Ltd and Green Power Energy Solutions Ltd.

During sentencing at Southwark Crown Court, Judge Martin Griffith said: “I have no doubt, looking at the history of these four companies, together with their trading practices, that they were each a vehicle for fraud”. 

The firms extensively mis-sold “add-on” products related to the victims’ existing solar and electrical systems, including voltage regulators.

Among those involved in the crimes were Smith’s brother Darrell, 30, of Penny Close, Colchester, and David Mayhew, 53, of Caelum Drive, Colchester.

Crooks used scare tactics to frighten elderly victims

They warned vulnerable elderly people their working equipment had failed, were incompatible or that unattainable savings would be made with one of their products.

Kill switches were sold to victims using scare tactics by telling them unless they purchased the products the fire service would not attend any emergency.

The equipment was also vastly overpriced, with it typically being sold for £3,500 when company records showed firms were buying them for £245.

Salespeople were incentivised to overcharge victims by receiving 50 per cent commission if they further inflated the price.

Trial - the defendants faced a trial at Southwark Crown Court

Many victims were targeted on more than one occasion, with a victim purchasing eight products and paying out more than £30,000.

In its largest-ever investigation, Essex Trading Standards gathered evidence concerning 47 properties.

Trish Burls, of the investigation team, said: “It’s clear to see that profit and greed were the main drivers behind this multi-handed fraud, with defendants linked via a network of companies all with one aim and that was to make as much money as possible."

The court heard from 40 witnesses who had purchased the products and between them lost £290,184.

By majority verdict, the jury concluded four of the seven defendants conspired together to defraud the consumers and were also guilt of laundering the extensive benefits obtained.

The remaining three admitted lesser offences of money laundering.

Seven defendants admit guilt or are convicted

• Antony Dean, 42, of Waterson Vale, Chelmsford, received more than £528,000 in payments from the companies. He was convicted of conspiracy to defraud and money laundering. He was jailed for three years.

• Prolific salesman Lewis Manley, 31, of Challock, Ashford, received £377,534 in commission. He was convicted of conspiracy to defraud and money laundering. He was jailed for two years and eight months.

• Darrell Smith was convicted of convicted of conspiracy to defraud and money laundering. He was handed a two year suspended sentence.

• Carl Smith admitted laundering £25,319. He was handed a one year suspended sentence.

• Salesman David Mayhew was convicted of conspiracy to defraud and money laundering. He was handed an 18 month suspended sentence.

• David Jenkins, 50, of Alder Drive, Chelmsford, admitted laundering £26,089. He was handed a nine month suspended prison sentence.

• Emily Dean, 32, of Waterson Vale, Chelmsford, received £8,620 in payments from one of the firms. She admitted laundering these funds and was sentenced to 100 hours of community service.