Doorstep traders scammed victims out of £870,000 and ran an international money laundering operation
A case law update on the prosecution of Randhawa Roofing Ltd by Brent and Harrow Trading Standards, also reported in the Journal of Trading Standards.
What was the case about?
The company’s employees cold called homeowners, many of whom were elderly, and then bullied them into paying large sums of money for unnecessary work that was either done to a poor standard or not done at all. Some of the victims were left with no roof when they refused to pay the fraudsters more money. Six pensioners across London were scammed out of £870,000 between September 2017 and March 2018, £150,000 of which was recovered. In addition, the life savings of a 92 year old, needed to pay for his wife’s care, was sent to one of the company accounts and turned out to be payment for a fictitious investment bond.
Brent and Harrow Trading Standards carried out a major investigation, supported by the National Trading Standards (NTS) eCrime unit. An international money laundering operation was uncovered. This had involved transferring victims’ money across to Dubai, China and Singapore. Four defendants, who all worked for the company, were charged with conspiracy to defraud and money laundering offences. Evidence was provided in a number of ways including from items seized in raids, such as mobile phones, laptops and diaries and statements from building surveyors and a forensic accountant.
What did the court decide?
There was a six week trial and all 4 defendants were found guilty of the offences charged and sentenced to a total of 18 years in prison. They were also banned from owning a business for eight years.
What does this mean for advisers?
This case began as a local doorstep crime issue and quickly developed into an international operation. That is obviously not going to be the result for every doorstep cold call query but it illustrates how significant a call or enquiry can be. It is important to handle these calls correctly in accordance with the relevant protocols in relation to doorstep crime issues. Some trading standards services can take the call directly from the client, which may be especially important if the trader is still at their premises. Rapid response teams are also available in some areas and can be with a caller very quickly if they are in distress or if the trader is still at the premises. The Citizens Advice consumer service is often the best service to take these calls because they have arrangements with all trading standards services in England and Wales.
The case report provided doesn’t give any indication about whether any victims were compensated although sometimes this happens in cases like this as a result of separate Proceeds of Crime proceedings.
Kate Hobson is a consumer expert in the Expert Advice Team at Citizens Advice
