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

Road sweeper specialist files administration notice

Go Plant lodges court notice
3 hours ago

Anglian Homes rides in to finish crashed Everest contracts

Rival doubled glazed window specialist commits to complete orders
2 hours ago

Final work starts to connect super sewer to London system

End in sight with 1.5m thick concrete wall to be demolished to link-up to Lee Tunnel sewer system
3 hours ago

Legal challenge launched against £1.5bn A66 dualling

Balfour Beatty, Kier and Keltbray must now await outcome of court challenge
3 hours ago

John F Hunt wins 24-storey Battersea tower

Specialist to carry-out demolition, enabling works and RC frame construction
22 hours ago

William Hare wins steelwork on £500m Broadgate towers

Specialist to work on 2 Finsbury Avenue with McAlpine
23 hours ago

McAlpine appoints MD to grow ventures business

Owain Thomas will build on private rental and healthcare development successes
21 hours ago

BAM Co-op Live Arena opening delayed yet again

Another gig cancelled last night amid last minute safety concerns
1 day ago

National Grid unveils winners for £9bn network upgrade

New 'enterprise model' to deliver infrastructure schemes quicker and cheaper
2 days ago

Turkish insulation panel maker to build £45m UK factory

Assan Panel to open first UK plant at Freeport East
1 day ago

Expanding consultant Stantec swoops for Hydrock

Stantec UK business expands by a third as 950 staff join from Bristol-based engineer
2 days ago

Contractors wanted for £800m highways deal

Bids invited for Eastern Highways Alliance Framework 4
1 day ago

Galliford Try names group head of infrastructure

David Lowery promoted to Divisional Managing Director – Infrastructure.
1 day ago

Chigwell Group looks at stock market listing

Essex contractor registers as Public Limited Company
2 days ago

A57 Mottram Bypass clears final legal challenge

Balfour Beatty to get go-ahead to start shortly
2 days ago

100 jobs axed as Geoffrey Osborne confirms administration

Chairman Andrew Osborne calls it a 'sad day' as board loses fight for survival
3 days ago

Midgard set for Notting Hill office tower overhaul

Landmark project edges towards final approval after 10-year planning saga
2 days ago

Cumbrian civils firm clinches £40m Sellafield contract

Civils specialist Stobbarts will support McAlpine on groundworks and concrete
2 days ago

Designers named for London 2000-bed student rooms job

Bouygues will build £400m London School of Economics student scheme next to Tate Modern
2 days ago

£117m-turnover contractor files administration notice

ARJ Construction lodges court notice
3 days ago

£1bn London Blackfriars tower blocks approved

Trio of buildings rising to 45, 40 and 22 storeys approved by Southwark Council
3 days ago

Council decides to end Balfour deal after 13 years

Contractor has been maintaining roads across Herefordshire since 2013
3 days ago

Six civils clients to switch to low carbon concrete and steel

National Highways, Northumbrian Water and Sellafield sign fresh decarbonising pledge
4 days ago

Fortem extends homes repair deal across Birmingham

Willmott Dixon owned firm adds another two years to deal worth £170m
3 days ago

Kier wins £118m civil service Darlington hub

Work is expected to start towards the end of this year
4 days ago

Green light for 34-storey Digbeth apartments tower

480 flats will be delivered for Clarion housing association
3 days ago

LHC starts race for major retrofit and decarb framework

Hunt starts for firms to help with 6.1m social homes upgrade target
4 days ago

Windows giant Everest crashes into administration

Around 350 jobs at risk while hunt starts for a buyer to salvage business
4 days ago

Green light for £500m Newcastle health complex

Mixed use scheme will promote healthy living across all stages of life
4 days ago

Olympian Homes gets go-ahead for Bristol’s tallest building

Work on student and co-living towers to start this summer
4 days ago

Contractor services