Six people sentenced for Cranbrook bribery and corruption
Energy officials had used cash bribes and false invoices
Six people have been sentenced for their involvement in a criminal conspiracy which included bribery, money laundering and fraud centred around the Devon new town of Cranbrook.
Around £2 million of bribes were accepted by two former employees at the energy company E.ON - in the form of cash, false invoices, references and home improvements.
One of the employees was kept on side by being provided with fake references used to fraudulently facilitate several house moves.
The wrongdoing was identified by E.ON after the employees moved on, investigated and reported, leading to a long and complex investigation.
There was no wrongdoing on the part of the energy company itself.
By accepting the bribes, the employees ensured that companies who made legitimate and fair bids, lost out on the work.
Those sentenced at Winchester Crown Court yesterday and today (Wednesday 30th April and Thursday 1st May) are:
- 56 year old Mark Baker from Goole in Yorkshire who admitted being bribed, four counts of fraud by false representation, being concerned in a money laundering arrangement and fraud by abuse of position - he's been sentenced to 46 months in prison and disqualified from being a company director for seven years
- 53 year old Angela Baker, also of Goole, pleaded guilty to four fraud by false representation counts, fraud by abuse of position and being concerned in a money laundering arrangement - she's been sentenced to 13 months in prison, suspended for two years and made subject of a three months 8.00pm to 6.00am curfew
- 51 year old Matthew Heyward of Kingsteignton, Devon admitted bribery and being concerned in a money laundering arrangement - he's been jailed for 30 months and disqualified from being a company director for seven years
- 56 year old Timothy Paterson, 56, of Derby admitted two fraud by false representation charges, two charges of bribing another person and one of acquiring criminal property - he's been jailed for four years and disqualified from being a company director for seven years
- 51 year old Richard King of Husbands Bosworth in South Leicestershire pleaded guilty to fraud by false representation and two bribing another person charges - he's been jailed for 29 months
- 57 year old Andrew Blunsdon of Winscombe in Somerset admitted two counts of bribery and has been sentenced to 12 months in prison, suspended for two years and must complete 150 hours of unpaid work
In 2010, Cranbrook was being developed with new-build houses and E.ON was awarded with a contract to provide district heating for the project.
Mark Baker was appointed as E.ON’s Head of Projects and subsequently Head of Build for the project, with Matthew Heyward employed as a Quantity Surveyor, responsible for signing off works.
Mark Baker, who is married to Angela Baker, accepted bribes from individuals behind the companies Priddy Engineering Limited and RK Civil Engineering, with Heyward also receiving illegal payments.
Priddy Engineering Limited was controlled by Andrew Blunsdon who paid bribes to both Mark Baker and Heyward.
RK Civil Engineering Ltd (RKC) was one of a group of companies controlled by Richard King. King’s partner at RKC was Timothy Paterson and bank accounts linked to the two paid a combined total in excess of £1.5million to Mark Baker and Heyward.
The bribes arrived in the form of cash, money paid in to bank accounts, the use of prestige cars, free hotel rooms, free building work and false references.
The reason the bribes were paid is because these companies were construction contractors who either had or desired a commercial relationship with E.ON.
Part of Mark Baker’s role was deciding which companies should be given construction contracts at Cranbrook, and later at other locations around the UK.
Heyward played a key role in authorising the payment of contractor’s invoices, particularly at Cranbrook.
Blunsdon, King and Paterson knew Baker and Heyward to be in positions of influence when it came to the awarding and the management of contracts.
They bribed them to further their own financial interests knowing they’d willingly act in a corrupt manner.
The bribes started in 2011 and continued through until the end of 2015 when E.ON discovered and reported the illegal activity.
Detective Inspector 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.
“It is through E.ON’s initial identification of concerns and reporting this corrupt practice to Devon and Cornwall Police that enabled these convictions to be obtained.
“Bribery is a criminal offence and it is illegal for both employer and employee to offer, promise, give a bribe or receive or accept a bribe.
“This was a complex and time-consuming investigation but we are happy to have worked alongside E.ON and secured convictions against six defendants who believed rules did not apply to them and they could do whatever they wanted in order to reach their desired goal.
“These practices were often referred to as favours. Favours they are not, they are simply corrupt criminal practices.”
An E.ON UK spokesperson said: “Our internal processes enabled us to identify this case and take decisive action. Reflecting our zero-tolerance approach to bribery, we reported the matter to the police and have fully supported their investigation."