Trading Standards investigate ‘potential £300,000 motor fraud’
A motor business is being investigated over a ‘large scale potential fraud’ after trading standards officers in Telford noticed a ‘dramatic increase in complaints’, a committee has been told.
Councillors were told that the amount of information that can be released is limited as a Birmingham-based Regional Investigations Team (RIT) is now ‘actively investigating’ the trader.
The RIT takes referrals from local Trading Standards services where a business or trader is causing problems to consumers on a regional or national level, ,” the council’s audit committee heard on Wednesday (May 28).
“Telford Trading Standards noticed a dramatic increase in complaints about a particular motor business, with a total consumer detriment estimated at over £300,000.
“This large-scale potential fraud has been referred to the Regional Investigation Team (RIT) who are actively investigating the trader.”
Committee members were told that this is the “second Telford based trader the Trading Standards Team have referred to the RIT, the second being a home improvements business.
“The trader has pleaded not guilty to Fraud Act charges and a trial scheduled for June 2027.”
The audit committee was told that the trading standards service in Telford enforces specific pieces of consumer protection laws that contribute to the tackling of fraud and fraudulent trading across the borough.
Officers reported that in 2024/25, two significant prosecutions of rogue builders were concluded at Crown Court.
“In both cases,” the report read. “The traders were found guilty of offences against vulnerable consumers under the Fraud Act 2006, with one receiving a custodial sentence of 5-and-half years, and the second a two-year term of imprisonment suspended for two years.
“The values of the frauds were £70,000 and £60,000 respectively.”
Council teams have also been “heavily involved” tackling the supply of counterfeit and illicit tobacco and vapes.
“In addition to Trading Standards-led work, the team supported two police operations in their national fraud intensification month, focusing on businesses in the borough suspected of being involved in fraud and money laundering.
Several seizures of illegal products were made and cash seized, and assets frozen by the Police.
Investigations are ongoing.
Story by David Tooley – Local Democracy Reporter
Pic: Stock image from cottonbro studio
