New town at centre of £1.7m construction scam

Six people have been sentenced for their roles in a £1.7m construction scam in which staff hired by an energy firm accepted bribes in the form of cash, dodgy references and gifts including a Range Rover and an air conditioning unit.

In return for the bribes building contractors were given lucrative contracts for the heating system installed in the new town of Cranbrook in Devon.

Mark Baker, Matthew Heyward, Timothy Patterson and Richard King were jailed in relation to bribery, money laundering and fraud offences, with Angela Baker and Andrew Blunsdon given suspended sentences.

Judge Rufus Taylor at Winchester Crown Court said "decent and honest" companies had been disadvantaged as a result.

Mark Baker, 56, of Goole in Yorkshire and Matthew Heyward, 51, of Kingsteignton, Devon, were both contracted to work for energy company E.ON, the court heard.

Heyward accepted bribes worth £1.4m in the form of cash, bank transfers, the use of prestige cars, free hotel rooms, free building work and false references.

The court was told large sums were "blown" by Heyward, who has since expressed "significant regret and remorse" on gambling, drugs and "other pleasures", with £250,000 spent at Ladbrokes.

Baker accepted bribes totalling more than £280,000 for which he has since expressed remorse, the court heard.

In addition, he received a Range Rover and his wife Angela Baker received an air conditioning unit for her florist business, while they were also handed false references for tenancy applications.

Sentencing the defendants the judge described the "group activity" as an abuse of position over a "sustained period" motivated by the expectation of "substantial commercial gain".

Referring to a "serious undermining of the proper function of business", he said the fraud had "thwarted the ambitions of other firms".

"If you are a decent honest company you do not stand a chance because you have not paid £1.5m to the quantity surveyor," he added.

"This kind of corruption has a chilling effect on the operation of commercial contracts," he added.

Mr Taylor made clear there was "no evidence" that materials used or work done by E.ON were "substandard".

The criminal conspiracy continued from 2011 to 2015 during the development of Cranbrook, which now has a population of more than 6,000 people.

Works included new-build houses, with energy firm E.ON awarded with a contract to provide district heating for the project.

James Calkwell, counsel for the prosecution, told the court this involved the construction of a power station near the estates.

The E.ON power station would generate electricity with a team recruited by the utility firm to install underground pipes conveying hot water to heat homes, the court heard.

Mark Baker, head of build at E.ON, was tasked with delivering on the contract, while quantity surveyor Heyward was responsible for signing off works.

The court heard how Baker and Heyward accepted bribes from individuals behind firms Priddy Engineering Limited and RK Civil Engineering.

Priddy Engineering Limited was controlled by Andrew Blunsdon, while RK Civil Engineering Ltd (RKC) was one of a group of companies controlled by Richard King.

The court heard there was no evidence that work he oversaw was "substandard" and he had continued to work in the utilities industry.

King's partner at RKC was Timothy Patterson.

In exchange, the firms were handed lucrative construction contracts at Cranbrook - and other locations across the UK.

Funds were recouped by overcharging E.ON for works, the court heard.

It was only after Baker and Heyward left E.O.N in 2014 and 2015 respectively, that the utilities firm discovered a large overspend at Cranbrook and other projects and suspicion fell on the pair, the court heard.

A police investigation revealed Baker and Heyward had been taking bribes and that the pair had covered up for each other.

Officers also found Baker persuaded E.ON to hire his wife Angela Baker - who the court heard felt unable to assert herself during a time of financial difficulty - as a planner at Cranbrook, an invented role for which she charged £109,000.

Blunsdon, who the court heard was of previous good character, bribed Heyward and provided false references enabling the Bakers to rent a home, while also gifting them an air conditioning unit.

He covered expenses by invoicing E.ON as part of his company's ongoing contract with the company. The invoice was signed off by Heyward.

Meanwhile King and Patterson of RKC also paid bribes to both men - handing Heyward more than £1.4m, covered up with false invoices, and treating him to hotel rooms and an Audi.

Det Insp Dan Parkinson from the Devon and Cornwall Police Complex Fraud Team, said: "These individuals believed corrupt practice was widespread in the construction industry and the method by which business was done.

"Corruption costs business and society, providing benefit for just a corrupt few. Ultimately, we all pay the price.

"These corrupt practices are a parasitic blight on society.

"These practices were often referred to as favours. Favours they are not, they are simply corrupt criminal practices."

In sentencing, the judge said an "unacceptable" delay from the Crown Prosecution service had impacted the sentences.

E.ON declined to comment on the case.

Mark Baker, 56, of Goole in Yorkshire, admitted being bribed, four counts of fraud by false representation, being concerned in a money laundering arrangement and fraud by abuse of position.

He was sentenced to 46 months in prison.

Angela Baker, 53, also of Goole, pleaded guilty to two fraud by false representation counts and being concerned in a money laundering arrangement.

She was jailed for 13 months, suspended for two years.

Matthew Heyward, 51, of Kingsteignton, Devon, entered guilty pleas to bribery and being concerned in a money laundering arrangement.

He was jailed for 30 months.

Timothy Patterson, 56, of Derby, admitted two fraud by false representation charges, two charges of bribing another person and acquiring criminal property.

He was jailed for four years, or 48 months.

Richard King, 51 of Husbands Bosworth in South Leicestershire, pleaded guilty to fraud by false representation and two bribing another person charges.

King was jailed for 29 months.

Andrew Blunsdon, 57 of Winscombe in Somerset, admitted two counts of bribery.

He was jailed for 12 months, suspended for two years.

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