Defendants behind energy tariff refund fraud sentenced to combined 13 years after Trading Standards prosecution

September 2, 2019

A case brought by the National Trading Standards Regional Investigation Team (East Midlands), which is hosted by Nottinghamshire County Council, has seen five individuals sentenced over energy tariff refund fraud.

The director and employees of an energy company that claimed to recover overpayments and VAT from UK energy suppliers for small businesses were sentenced to a combined total of 13 years at Nottingham Crown Court on Friday (30 August).

The sentences relate to offences of fraud, fraudulent trading and conspiracy to commit fraud when the group were working for Corporate Energy Support Solutions LTD (CESS) and its associated companies, Utility Advice Centre (UAC) and Utility Bill Saver (UBS).

The East Midlands team said Steven Ricardo (45) previously of, Chorley, Lancashire; David Michael Wilkinson (32) of Hucknall; Ian Frances McHugh (54) of Westward Ho, Devon; Max Thomas Bancroft (27) of Burnley and Brian Witty (76) of Hagley, West Midlands, were “involved with defrauding small businesses by offering various services to obtain refunds of overcharges from their energy suppliers; obtain refunds of overcharged VAT on their behalf and charge commission; and apply for the renewal or transfer of small businesses’ energy supplies over a period of four years”.

Small businesses and consumers paid an advance fee to the company in the hope of a refund for overpayments that actually never existed, it said.

The sentences were:

Steven Ricardo, in his absence, to six years (Count 1) and two years (count 5) imprisonment, to run concurrently. He will serve four years in prison.
David Wilkinson to two years. He will serve a year in prison.
Ian McHugh to two years. He will serve a year in prison.
Max Bancroft to 12 months' imprisonment, suspended for 18 months and 200 hours' unpaid work.
Brian Witty - a conditional discharge for the next 12 months.

The judge recognised that while the detriment was in the region of £1.6m, the sentences were based on the 770 known complainants and their losses.

Cllr John Handley, Vice-Chairman of Communities and Place Committee at Nottinghamshire County Council, said: “I welcome this outcome. The director and employees of CESS LTD and its associated companies were found guilty on three counts.

“This elaborate scheme was solely designed to trick small business owners into paying for services that did not exist. These people trusted CESS Ltd to secure refunds of overcharges from their energy supplier, but the refunds never materialised. They also charged exorbitant commission and provided the energy supply companies with false documentation.”

Cllr Handley added: “We hope these prosecution and sentences send out a clear message to other traders that we will not tolerate fraudulent practises. We will pursue anyone who attempts to operate in this manner, which causes distress to those affected.

"Our advice to business owners is always to check with your energy supplier directly and do not just take the word of a cold caller. If an offer looks too good to be true, it usually is."

Lord Toby Harris, Chair, National Trading Standards, said: “This case affected hundreds small businesses across the country. Given the scale of the fraud and its national significance, we invested extensive time and resources in this case. The sentences are a powerful reminder that we will support and protect legitimate businesses and continue to prosecute fraudsters and money launderers.

“I would like to take this opportunity to congratulate the team for their hard work in bringing about these prosecutions and sentences.”