Mis-selling of energy supply contracts 'rife' at firms owned by Fleetwood Town boss Andy Pilley, say prosecutors

Sales teams employed by Mr Pilley’s companies “routinely used false statements, misleading information and outright lies” to win sales, prosecutors claimed in their opening statement on the case.

Individual sellers told customers they were phoning as independent brokers and recommended gas provider Business Energy Solutions Ltd (BES) and electricity supplier BES Commercial Electric Ltd ahead of rival firms, claiming prices were cheaper.

However, they were not independent but employees of the Mr Pilley and his sister, Michelle Davidson, who own both companies. And it is claimed those sales teams involved would not check to see if prices even were cheaper.

By 2016 the two firms were making a combined total of £88million a year but it is alleged that the firms were using unfair advantages to take clients off rival energy suppliers, often at the expense of small businesses who were targeted customers.

Yet employees were not reprimanded or sacked by their bosses when this came to light – some were even promoted , it is claimed. At best, the bosses turned a blind eye and it is they who face the court proceedings.

Fleetwood Town owner Mr Pilley, Ms Davidson and co-defendants Lee Qualter and Joel Chapman.are facing fraud allegations in a trial in Court 2 of the old Sessions House in Lancaster Road, which could last until Christmas.

Mr Pilley, 52, from Thornton, is facing two counts of running a business with the intention of defrauding creditors, one count of false representation and one count of being concerned with the retention of criminal property.

Ms Davidson, 49, of Holmefield Avenue, Cleveleys faces two counts of running a business with the intention of defrauding creditors and one of being concerned with the retention of criminal property.

Lee Qualter, 52, of Holmefield Avenue, Cleveleys, faces one allegation of running a company with the intent to defraud.

A fourth defendant, Joel Chapman, 38, of Kingston Road, Willerby, Yorkshire, who also had a Poulton address, is accused of aiding false representation by coercing staff to dupe customers.

All four deny the allegations against them.

Prosecutor Andrew Thomas KC said: “The case is about fraudulent mis-selling of energy contracts by and on behalf of businesses based in Fleetwood and Blackpool.

"The victims were small business owners from all around the country, such as small shops, pubs, cafes and hairdressers.

"The charges relate to offences from the period 2014-2016, but the roots go back further.

“The prosecution case is that fraudulent sales tactics were rife within the telesales team.

"Put simply, many of the sales staff would use false statements, misleading information and outright lies in order to win sales for their employers.

"The telesales team pretended to be independent of the suppliers.

"The reality, the prosecution say, is that they were working for the owners of a specific energy supply group called Business Energy Solutions (known as ‘BES’).”

Mr Thomas said that Mr Pilley and his sister were talented and creative business people who had built their firms up from scratch.

But he added: “What you will have to consider in this case is whether along the way they have cheated to gain an unfair commercial advantage over rival suppliers, and doing so at the expense of their small business customers.”

He stressed that not all employers had acted fraudulently.

The court heard that Mr Pilley and Ms Davidson were the main drivers of the operation, with Mr Pilley being the managing director of the BES enterprises and majority owner, while Ms Davidson had a smaller stake an was co-director of the companies.

Another company they ran, Commercial Power Ltd, was called an ‘aggregator’ and was also involved in the operation.

Mr Qualter became a director of three companies to which the telesales teams were transferred – Commercial Energy Ltd, Energy Search Ltd and Commercial Reduction Services Ltd.

However, these were not true independent and Mr Qualter took his instructions and pay from Mr Pilley’s operation.

The fourth defendent, Mr Chapman, was head of regulation and compliance for both the two BES companies and Commercial Power Ltd and would have been expected to act if he had seen unsound practices.

The prosecution has been brought by Trading Standards North West and follows a raid on BES offices by its officers and police in 2016.