Prison sentences for unfair trading by kitchen businesses

Six people sentenced to go to prison for a total of 5 years 9 months after judge hears testimony from over 300 victims.

Six people have been sentenced yesterday (7 June) to a total of five years and nine months imprisonment for their part in unfair trading practices relating to a number of kitchen businesses operated out of Maple Mill in Oldham, which cost consumers some £2.6 million. The businesses were found to have unlawfully used the B&Q trade mark to mislead consumers and made false claims about the quality of their kitchens, their sales and delivery procedures and the nature of their after sales service.

Between February 2011 and August 2014 more than 1,700 complaints were made to the Citizens Advice Consumer Helpline about businesses operating under a variety of trading names including Kitchen Units, Kitchen Uber, Interior Home Designs of Rossendale, Manchester Kitchen Company, Lancashire Interior Home Designs and Stilhaus Kitchens. This sparked a two-year investigation by the National Trading Standards Scambuster Team (Yorkshire and the Humber), which is hosted by City of York Council.

Five of the defendants, who had pleaded not guilty to all allegations, were convicted by a jury:

• Martin Sersen (aged 25) of Rochdale was sentenced to two terms of 15 months imprisonment the second term to be served concurrently for providing customers with false information as to the source, quality, manufacture or supply of kitchen units (contrary to Regulations 5 and 9 of the Consumer Protection from Unfair Trading Regulations 2008) and false information concerning the nature of the sales process and delivery of kitchen units (contrary to Regulations 5 and 9 of the Consumer Protection from Unfair Trading Regulations 2008).

• David Alan Hourigan (aged 41) of Bacup, Lancs, was sentenced to two terms of 18 months imprisonment, the second to be served concurrently, for providing false information to customers as to the source, quality, manufacture or supply of kitchen units (contrary to Regulations 5 and 9 of the Consumer Protection from Unfair Trading Regulations 2008) and false information concerning the nature of the sales process and delivery of kitchen units (contrary to Regulations 5 and 9 of the Consumer Protection from Unfair Trading Regulations 2008).

• Richard Brundrett (aged 41) of Bacup, Lancs, was sentenced to 9 months imprisonment for providing customers with false information concerning the nature of the sales process and delivery of kitchen units (contrary to Regulations 5 and 9 of the Consumer Protection from Unfair Trading Regulations 2008).

• Nicola Brodie (aged 39) formerly of Rochdale was sentenced to two terms of imprisonment, the first for 12 months and the second for 6 months to be served concurrently, for the unauthorised use of the B&Q trade mark (contrary to Section 92 of the Trade Marks Act 1994) and providing false information as to the source, quality, manufacture or supply of kitchen units (contrary to Regulations 5 and 9 of the Consumer Protection from Unfair Trading Regulations 2008).

• Matthew James Leak (aged 24) of Rochdale was sentenced to two terms imprisonment, the first for 6 months the second for 3 months to be served concurrently, for providing customers with false information as to the source, quality, manufacture or supply of kitchen units (contrary to Regulations 5 and 9 of the Consumer Protection from Unfair Trading Regulations 2008) and false information concerning the nature of the sales process and delivery of kitchen units (contrary to Regulations 5 and 9 of the Consumer Protection from Unfair Trading Regulations 2008).

The jury acquitted the five defendants of charges of conspiracy to defraud and money laundering.

A sixth person, Karen Stocks (aged 43) of The Quadrant, Manchester, M43 6PY, who had pleaded guilty to contraventions of the Trade Marks Act and the Consumer Protection from Unfair Trading Regulations 2008 at the outset of the trial, was sentenced to three terms of imprisonment, the first for 9 months, the second for 5 months to be served concurrently and the third for 2 months also to be served concurrently.

Vance Miller (aged 50) who the defendants claimed was the person behind the businesses, remains at large and is believed to be living abroad. A warrant for his arrest was issued by Magistrates in December 2013.

The Court heard evidence from a sample of more than 300 customers who complained to the Citizens Advice Consumer Helpline. Examples of these complaints include:

• Steps were taken to conceal from customers that the retail side of the business was really being run from Maple Mill using a variety of trading names and accommodation addresses.

• A significant quantity of the kitchen units, components and appliances sold by the business to retail customers were substandard.

• A significant number of kitchens were advertised and / or sold to customers as being ‘last year’s’ B&Q stock when this was not so.

• Much of the internet advertising used by the business was misleading. The adverts were also misleading in that they all offered complete kitchens for sale at an inclusive price when the kitchen businesses’ standard practice was to later claim that they did not sell complete kitchens but only individual components.

• Customers were required to pay cash (or banker’s draft) without any proper opportunity to check the kitchens.

• Calls to ‘customer service’ lines and other forms of correspondence often went unanswered or were put onto continuous hold, cut off or rudely rebuffed.

• Customers who embarked upon legal action found further obstructions thrown in their way and judgements, when obtained, were often ignored or found to be impossible to enforce because accommodation rather than business addresses were used to run the kitchen business.

• Some customers were falsely told that they were purchasing high quality German-made appliances such as ‘Neff’ but were then supplied with cheap, Chinese-made appliances that came with a worthless guarantee and a helpline telephone number that did not work.

• Fake stories from fictitious customers were planted on the internet which extolled the high quality and fantastic service supposedly received from the business names used by the defendants.

In sentencing the defendants His Honour Judge Leeming said: over the period of offending

£2 million had been spent by the defendants to advertise high quality kitchens at bargain prices. Adverts had been placed in various publications using the name B&Q and more widely on the internet, however all contact details lead straight to Maple Mill and the indirect control of Vance Miller.

Judge Leeming commented that on any view a kitchen was an important purchase for anyone regardless of their financial means. Customers were attracted by reference to such famous names as Moben by the sales representatives and designers, substandard appliances were ordered and supplied after the customer heard the word Neff and linked it to the high quality German maker.

All defendants must have known that what they were doing by following Vance Millers instructions was deceptive. Many of them (the customers) were looking forward to receiving an immaculate or their dream kitchen. The reality was far from that.’

As to customer care Judge Leeming said that customers were unable to inspect goods on delivery as they were flat packed and bubble wrapped and phone calls (from customers)were not answered. He said ‘I’ve heard weeks of evidence, the kitchens were “effectively rubbish”.

Lord Toby Harris, Chair, National Trading Standards said:

“These criminals took deliberate steps to mislead and deceive consumers over a number of years, leaving them out of pocket by some £2.6 million. I would like to thank all of those involved for their diligent efforts in bringing these criminals to justice.

“Unfortunately, sometimes it can be hard to differentiate between a legitimate and a criminal business – particularly if they take such steps to conceal their true nature. However, if you are in any doubt I would urge you to help us clamp down on this criminal activity by calling the Citizens Advice consumer service on 03454 04 05 06.”

Councillor Nigel Ayre, Executive Member with responsibility for Trading Standards at City of York Council, said: “This investigation and the first prosecution by our nationally-recognised team of experts, shows that scams will be identified and the perpetrators sentenced. Consumers have rights which we will uphold.”