Stockport director cleared of fraud charges

AN EX-FINANCE director of a Stockport-based business which sold fire and security systems has been cleared of fraud and regulatory breach charges following a trial at Harrow Crown Court.

John Davies, a former employee at SAS Fire and Security Systems in Stockport, was accused of conspiracy to defraud, along with other minor fraud offences and regulatory offences. Other directors and employees of the business were also charged with the same offences.

The prosecution was led by the Trading Standards Service at the London Borough of Hillingdon Council along with several other councils in relation to trading standards offences of selling fire alarms door-to-door for a nominal sum or free of charge and charging a fee to monitor the systems.

Rachel Adamson, fraud and regulatory associate solicitor at Stephensons Solicitors LLP, said: “Following the prosecution case, the Judge agreed that there was no case to answer on the conspiracy to defraud charge. The minor fraud matters were also dropped following the defence case, leaving Mr Davies to face regulatory breaches. The other company directors faced regulatory breaches and conspiracy to defraud.

“Following the 10-week trial, we are very pleased at the decision to find Mr Davies innocent of the charges against him. He has always maintained his innocence.

“The other directors were acquitted of conspiracy to defraud but convicted of the regulatory offences. Another salesman was acquitted.

She added that the case was “illustrative of the types of difficulties financial directors can find themselves in”.

“Scrutiny of suspected financial fraud within businesses has increased enormously since the downturn in the economy. This scrutiny often taints legitimate professionals, and others involved in running a business can find themselves embroiled in such accusations.

“The new consumer regulations are also proving difficult for new businesses and it is wise to take advice.”