Andrew Pilley was sentenced at Preston Crown Court today

Andrew Pilley, the owner of Fleetwood Town Football Club and a range of other businesses, was sentenced today (July 4) following the conclusion of a trial which lasted several months.

Pilley was remanded into custody after he was found guilty at Preston Crown Court in May, 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.

At the heart of the fraud was a web of interconnected companies that misled innocent small businesses across the UK.

Through sham company structures associated with Business Energy Solutions Ltd, BES Commercial Electricity Ltd and Commercial Power Ltd, Pilley and his associates were responsible for targeting small business owners and deceiving them into signing long-term energy contracts between 2014 and 2016.

Following a complex and lengthy investigation the jury delivered its verdict in May and found:

Andrew Pilley, 52, of Wyre Road in Thornton Cleveleys, guilty of:

• Two counts of Fraudulent trading – including causing or allowing fraudulent mis-selling of energy supply contracts and concealing this from customers and Ofgem and/or the Energy Ombudsman
• Being concerned in an arrangement which facilitates the acquisition, retention, use or control of criminal property by another – namely the proceeds of fraudulently mis-sold energy contracts
• Fraud by false representation based on posts on MoneySavingExpert.com and Ise.co.uk which falsely purported to be made by customers and contained fabricated content

Today, he was jailed for 13 years and disqualified from being the director of a company for 13 years.

Judge Graham Knowles KC said: “Andrew James Pilley, the removal to prison of your loyal employee, your sometime best friend and your own sister is your doing as well as theirs.

“In 1998 you went to prison for four months for conspiracy to steal from the post office where you were a counter clerk.

“Yours could have been a remarkable story of redemption, success, local heroism and philanthropy. Instead it is a sordid tale of squalid lies, greed and fraud.

“You told brazen lies to the jury. When confronted with your own words typed with your own hands you complained ludicrously of trial by email.

“Missing from your evidence was any conventional sense of honesty.”

Michelle Davidson, 49, of Holmefield Avenue, Thornton-Cleveleys, was found guilty of fraudulent trading and being concerned in an arrangement which facilitates the acquisition, retention, use or control of criminal property by another.

She was jailed for six years and banned from being the director of a company for nine years.

Lee Andrew Qualter, 52, of Holmefield Avenue, Thornton-Cleveleys, was found guilty of fraudulent trading.

He was jailed for seven years and was banned from being the director of a company for nine years.

Joel Chapman, 37, of Kingston Road, Willerby, Yorkshire, was found guilty of fraud by false representation and was jailed for eight months.

The fraud worked through a telesales operation run by companies that appeared to be independent with Qualter as the sole director, but were actually controlled by Pilley and his sister Michelle Davidson, who were the directors of the 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.

In the initial ‘front end’ part of the call, the sales representative 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. Business owners were then transferred to a different sales representative who would run through terms and conditions and confirm the agreement.

This was a binding verbal contract and, because it was a business-to-business sale, there was no cooling off period. The fraud worked because the vast majority of customers didn’t realise they had been misled at the point of entering into the verbal contract.

The majority of energy contracts sold by the telesales companies went to Pilley and Davidson’s BES companies. By 2014, the volume of business which was being placed with BES was 76 per cent, rising to 86 per cent in 2015 – with longer and more valuable contracts going to BES and the less valuable contracts going to other suppliers.

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.

The successful prosecution follows an investigation by the National Trading Standards Regional Investigation Team (North West), which is hosted by Cheshire West and Chester Council.

The criminal investigation followed previous warnings and investigations from enforcement bodies, including Blackpool Trading Standards and Ofgem, before the current Trading Standards case began as a mis-selling investigation commenced by Lancashire Trading Standards in December 2013.

Following the convictions in May, a spokesperson for Fleetwood Town FC said: "Fleetwood Town would like to reassure supporters the Club will continue to operate as normal and there will be no risk to the future of the club.

"The club’s senior management team and directors have been planning for a number of months for the event of a verdict of this nature.

"A meeting of the club’s management has taken place this evening and plans are already in operation to ensure its business as usual.

"We’d like to reassure supporters charges are solely brought against Andy Pilley and not Fleetwood Town Football Club or any of the businesses attached to the group.

"Talks have already taken place with the EFL and an announcement regarding the next step will be made in due course."

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.

“This has been a long and complex case and I would like to take this opportunity to thank and congratulate the Trading Standards officers involved for their commitment and perseverance to protect honest customers and safeguard legitimate businesses.”

Councillor Christine Warner, cabinet member for homes, planning and safer communities at Cheshire West & Chester Council, said: “Using a number of businesses based in Blackpool, Bispham and Fleetwood, Pilley and his associates targeted small businesses across the Country with no regard to the damage of locking them into long-term energy contracts, based on false information would cause for their owners and employees.

“Thanks to a tireless investigation by the Trading Standards North West Investigation Team hosted by Cheshire west & Chester Council, the criminals behind the fraud have been brought to justice and stopped from defrauding even more businesses.

“This verdict is a testament to the persistence of the Trading Standards officers who pursued this investigation over several years and sends a clear message that these crimes will not be tolerated.”

Fleetwood will continue to go about the club’s normal business following the sentencing of its former chairman.

Pilley had been the chairman and owner of Fleetwood for 20 years and overseen the club’s rise from non-league status to the English Football League.

Fleetwood, who finished 13th last season, had already announced the club were in discussions surrounding a change of ownership and control which remain ongoing.

A statement on Tuesday afternoon read: “Fleetwood Town Football Club acknowledges the sentencing in the court case involving former club chairman, Andy Pilley.

“The club would like to reiterate convictions are against individuals and not Fleetwood Town FC, or any of the businesses associated with them, and will continue to operate as normal.

“Fleetwood Town remain in communication with the EFL and will be making no further comment at this time.”