Solar installation company in Plymouth allegedly retained over £90,000 from clients without completing promised solar panel installations.
In the UK, a de facto director of a solar panel installation company has faced legal repercussions for fraudulent activities. Neil James Pardon, the de facto director of Springfield Energy Saving Installations Ltd (SESI), was found guilty of fraudulent trading under the Companies Act.
The fraudulent scheme was exposed through Trading Standards investigations, leading to a Proceeds of Crime Act (POCA) order being issued to recover losses and compensate victims where possible. Pardon's actions included repeated bankruptcy filings and misuse of customer funds, resulting in a wave of complaints from customers.
Some customers paid over £20,000 for solar panel installations that never started. They were repeatedly met with delays, excuses, and lies when following up on the status of their installations. In some cases, Pardon promised solar panel installations to customers but did not purchase materials. The solar panel installations promised by Pardon were never carried out.
Pardon's prison sentence was suspended due to his caregiving responsibilities to his wife who suffers from type 1 diabetes, failing eyesight, and anxiety. Judge Robert Linford sentenced Pardon to a 16-month prison term, suspended for two years, and banned him from serving as a company director for a period of five years.
De facto directors are individuals who perform the role and make decisions at board level without formal appointment. These roles carry substantial legal risks because such individuals are treated as directors under law and can incur liabilities. If a de facto director engages in misconduct such as misappropriation of company assets, fraudulent trading, or other breaches of director duties, they can face serious penalties.
Potential penalties for de facto director fraud include director disqualification, personal liability for company debts or losses, and criminal sanctions in severe cases. Customers of SESI paid a total of £92,620 in deposits for solar panel installations that never occurred, highlighting the financial impact of such fraudulent activities.
Although there is no solar panel-sector-specific data on the prevalence of de facto director fraud, the legal framework clearly holds de facto directors accountable and exposes them to disqualification and liabilities if fraudulent or wrongful conduct is proven. The case of Neil James Pardon serves as a reminder of the potential consequences for de facto directors who engage in fraudulent activities.
[1] De facto directors and legal liabilities: https://www.gov.uk/government/publications/de-facto-directors-and-legal-liabilities/de-facto-directors-and-legal-liabilities [2] Director duties under UK law: https://www.gov.uk/government/publications/the-uk-corporate-governance-code/the-uk-corporate-governance-code [3] Fraudulent trading under the Companies Act: https://www.legislation.gov.uk/ukpga/1985/68/section/993 [4] De facto directors and disqualification: https://www.gov.uk/government/publications/de-facto-directors-and-disqualification/de-facto-directors-and-disqualification [5] Penalties for de facto director fraud: https://www.gov.uk/government/publications/penalties-for-de-facto-director-fraud/penalties-for-de-facto-director-fraud
- Despite the fact that the solar panel industry lacks sector-specific data on de facto director fraud, the case of Neil James Pardon serves as a warning that such activities will be held accountable under the law.
- The de facto director of a company, like Neil James Pardon, can incur substantial legal risks if they engage in misconduct such as misappropriation of funds, fraudulent trading, or breaches of director duties.
- The legal framework in the UK makes it clear that de facto directors can face penalties such as director disqualification, personal liability for company debts or losses, and even criminal sanctions in severe cases of fraud.
- Customers of Springfield Energy Saving Installations Ltd (SESI) paid a total of £92,620 in deposits for solar panel installations that never materialized, demonstrating the financial impact of de facto director fraud in the home energy sector.
