4,000 small builders lose £1m in web con

Grant Prior 13 years ago
Share

More than 4,000 small builders have been ripped-off for £1m by websites which claimed they could find them work.

Builders were persuaded to pay £300 to register with sites providing a database of “trusted” firms to carry out domestic works.

But the sites delivered nothing and have now been shut down by the High Court following an investigation by the Company Investigations unit of the Insolvency Service.

The Building Trades Database Limited, Quality Build Services Limited, Coast 2 Coast Building Services Limited and MTB Sussex Limited traded between October 2008 and February 2011.

Salespeople working for the sites claimed members of the public could submit an enquiry to the company’s website detailing their work requirements to receive a recommendation for an approved builder or tradesman.

Tradesmen were persuaded by cold calling techniques to register as members on the websites operated by the companies in return for the payment of a fee typically of between £200-£300 plus VAT.

The investigation found the sites made false and misleading statements to tradesmen and no or insufficient evidence was found by investigators that builders received any referrals.

In all nearly £1m was conned by the companies from around 4,000 tradesmen which was paid in commission fees to sales staff and payments to the companies directors.

Company Investigations Supervisor Chris Mayhew said: “The Building Trades Database Limited preyed on tradesmen to build up a database business built on seriously misleading and unfounded statements to persuade them to enroll for the purported service.

“The business effectively migrated from one company to another and the continuing deceit on tradesmen unfortunate enough to have been contacted by these companies is perhaps best illustrated by the discovery that the telephone numbers for the positive testimonials about one of the companies, Coast 2 Coast Building Services Limited, purportedly from two tradesmen, matched those for two mobile telephones found at the company’s former trading address”.

In ordering the companies into liquidation Ms Registrar Barber said: “Each company made misleading and unfounded statements to tradesmen by a variety of methods including cold calling and on their websites in order to lure tradesmen into paying a membership fee.

“Despite a vigorous investigation into the trading practices of each company, no or insufficient evidence was uncovered, still less was provided by the companies, that anyone who signed up received any work referrals at all or received any commercial benefit.”

Latest news

Morgan Sindall to build former Willmott Dixon leisure job

New contractor appointed on
14 hours ago

Graham consortium wins £400m Manchester job

Equitix consortium to now work up DBFO plans for University of Manchester’s Fallowfield Campus
10 hours ago

Keltbray looking to sell infrastructure business

£378m turnover rail, energy and highways business up for sale
21 hours ago

Innovative viaduct building method used for first time in UK

HS2 contractors will build nine viaducts in Delta Junction using special cantilevered process
21 hours ago

Unite buys London site to fast-track 444-bed student scheme

£800m to be spent on London development pipeline in next five years
21 hours ago

CITB awards £2.5m of contracts to management consultant

Three outsourced deals in the last year for "project leadership and management consultancy"
21 hours ago

Village centre approved for 6,000-home new town plan

Hampshire's Welborne Garden Village plan has been in the pipeline for two decades.
20 hours ago

£3m fine after cherry picker demolition death

Court rules after tragedy during decommissioning of gas rig
21 hours ago

BAM plans wave of job cuts at UK Construction arm

Co-op Live arena plunges Bam Construction to £19.5m first-half loss
2 days ago

Robot tunnel builder goes into administration

Hypertunnel was hoping to revolutionise how underground structures are built
2 days ago

Wates to build £86m Guildford Council housing scheme

40% of the 248 homes will become council homes under partnership deal
2 days ago

“Scrap CITB” say three quarters of construction firms

Payroll giant Hudson Contract calls for CITB to be absorbed into new Skills England training body
2 days ago

£100m Prestwich Village revival approved

Vinci and Willmott Dixon in chase for Muse-led regeneration scheme
2 days ago

Carbon negative asphalt aggregate trialled on M11

Skanska and Tarmac test CO2 absorbing aggregate material on stretch of Essex motorway
2 days ago

Father and son sentenced over covid construction loan fraud

Bristol builders given suspended jail sentences over bogus Bounce Back Loans
2 days ago

Beck Interiors files administration notice

Supply chain has suffered delayed payments from £139m-turnover luxury fit out specialist
3 days ago

Green light for York Central civil service office hub

£60m office project accelerates York Central goods yard redevelopment
3 days ago

Blenheim House Construction enters administration

Administrators looking at options on present projects
3 days ago

Profits rise at Esh Group with more to come

Contractor confident about year ahead as market conditions move in right direction
3 days ago

Piling specialist Van Elle sees housing orders rise 30%

Mark Cutler says firm on course to deliver 10% annual sales growth
3 days ago

HS2 to spend £100m shutting sites where work never started

Remediation of sites no longer needed for cancelled Phase 2 will take three years
4 days ago

Willmott Dixon wins £61m deal for new Army dog unit

Contractor to revamp Kendrew Barracks in Rutland
3 days ago

Stockport advances 4,000-home Town Centre East plan

Council seeks consultants to steer plan for 280-acre area in the city
3 days ago

ISG sale imminent as buyers set-up UK holding company

South African nutrition entrepreneur and Australian partner primed to take over
4 days ago

CR Construction wins £210m Manchester towers

Construction to start next year on four blocks ranging from nine to 34-storeys
4 days ago

Southern Housing to rationalise supply chain following merger

Firms put on alert for £1.7bn construction framework renewal
4 days ago

Decision delayed on 52-storey Isle of Dogs tower

Hong Kong developer plans 460 flats block next to Millwall Inner Dock
4 days ago

Go-ahead for £850m North London estate rebuild

Flagship Edmonton housing estate redevelopment will deliver 2,000 new homes
4 days ago

Mace lands £184m Oxford Science Park contract

Contractor to build trio of laboratory and office buildings
5 days ago

Worker paralysed in 30ft fall during electricity pylon demolition

Specialist firm fined £240,000 after court hears linesman attached lanyard to a loosened steel section
4 days ago

Contractor services