Customers were 'happy to stay' with energy businesses owned by football boss Andy Pilley at centre of fraud trial, court told

Fleetwood Town owner Mr Pilley, his sister Michelle Davidson Davidson and co-defendants Lee Qualter and Joel Chapman are facing various fraud allegations in an ongoing trial in Court 2 of the old Sessions House in Lancaster Road, Preston.

The case revolves around the alleged mis-selling of energy supply contracts through Mr Pilley's firm Business Energy Solutions (BES) and other companies.

In a complex case which began in October and is expected to continue into the New Year, the court sitting on Wednesday December 7 heard written statements from the accused read out.

In one of the statements Michelle Davidson, sister of Mr Pilley, was asked about the high number of complaints made about the way energy contracts by telesales teams were sold over the phone by brokers working for them.

Ms Davidson, 49, of Holmefield Avenue, Cleveleys, the co-director of the BES supply companies and of Commercial Power Ltd and a minority shareholder in those companies, said the vast majority of customers were happy.

In a statement read out by prosecutor Andrew Thomas KC, Ms Davidson said: “We have 44,000 customers at BES and 100,000 contracts, so there will be a potential number who are unhappy.

"We have a 78 per cent customer retention rate, which suggests that customers are happy to stay with us.”

The company had its own complaints procedure in the event of customers not being satisfied, and if the issues could not be resolved BES was always happy to work with the Ombudsman, she said.

In her statement, she added: “We have a positive working relationship with the Ombudsman and take the resolution of complaints seriously, weeding out any brokers who mis-sell.”

In an earlier hearing, the court hear that 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.

Prosecutors say that, at best, the accused turned a blind eye to mis-selling and the two businesses profited from the sales, making a combined total of £88million in 2016 alone.

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.

The prosecution has been brought by Trading Standards North West .

Proceeding