Fleetwood Town owner Andy Pilley convicted of multi-million pound fraud

The owner of Fleetwood Town is facing a jail sentence after being found guilty of a multi-million pound fraud involving mis-sold energy contracts.

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."

Pilley, 52, who has been the club's chairman for 21 years, has been remanded in custody and faces sentencing at Preston Crown Court on 3 July, 2023.

He 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.

Through sham companies, Pilley and his fellow fraudsters conned small business owners and locked them into signing long-term energy contracts between 2014 and 2016.

They even posted messages on MondaySavingExpert.com and Ise.co.uk which falsely purported to be made by customers and contained fabricated content.

The fraud worked through a telesales operation run by companies that appeared to be independent, but were actually controlled by Pilley and his sister Michelle Davidson, who were the directors of BES energy supply companies.

The sales companies targeted small businesses and charities - including guest houses, children’s charities and companies providing support services for disabled people - as they moved into new premises or when their energy contracts were up for renewal. Sales reps 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 contract as well as competitor rates.

The fraud worked because the vast majority of customers did not realise they had been misled. Evidence shows the majority of energy contracts sold by the telesales companies went to Pilley and Davidson’s BES companies.

Between 2010 and 2015, annual turnover in the two BES companies grew from around £15 million to £75 million.

By 2019, turnover was over £100 million and combined profits were between £2 million and £12 million.

Convicted alongside Pilley, of Wyre Road, Thornton-Cleveleys in Lancashire, were: Michelle Davidson, aged 49, of Holmefield Avenue, Thornton-Cleveleys; Lee Andrew Qualter, aged 52, of Holmefield Avenue, Thornton-Cleveleys; and Joel Chapman, aged 37, of Kingston Road, Willerby, Yorkshire.

Lord Michael Bichard, Chair, National Trading Standards, said: “Small business owners were deliberately deceived and locked in to contracts that were long-term and expensive, leaving many businesses struggling to pay the bills and sadly driving some business owners into making the difficult decision to cease trading.

“This is not a victimless crime – small business owners have lost vast sums of money to this fraud and many businesses have gone under.

"Legitimate businesses in the energy market have also lost out by missing out on energy contracts there were diverted to the BES companies."

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