A 74-year-old Derby builder has been sentenced to two years and four months in prison for his role in a £212,000 fraud that left seven homeowners facing 'dangerous structures' in their homes. Michael Haslam, who operated M&J Builders Limited, admitted to taking money from customers for building work that was often never completed or was carried out to an extremely poor standard, all while the company was insolvent.
Derby Crown Court heard that between 2020 and 2022, customers paid thousands of pounds upfront for home improvements, but were left with properties in unsafe conditions. The Insolvency Service, which investigated the case, stated that Haslam's actions resulted in 'dangerous structures' for his clients. He pleaded guilty to one count of fraudulent trading in May and was subsequently sentenced to two years and four months in prison, of which he will serve 40% before being eligible for release on licence. Additionally, Haslam has been disqualified from acting as a company director for 15 years.
The court was informed that M&J Builders Limited was established in 2016 and initially operated as a legitimate business. However, prosecutor Tom Heath revealed that the company began experiencing significant financial difficulties in 2019. Despite receiving advice from an insolvency practitioner that the company was bust and a High Court winding-up order being issued in November 2022, Haslam continued to solicit and accept payments from the public.
Judge Shaun Smith KC, presiding over the case, remarked that Haslam had 'closed his eyes to the inevitable' and 'ripped off' families in a desperate attempt to keep his business afloat. The judge described the situation for the victims as 'one of the saddest set of circumstances I've heard in a long time', highlighting the severe detrimental effects on them, not only financially but also emotionally and psychologically.
One victim recounted paying Haslam £47,760 for a single-storey extension and garage refurbishment, only for work to cease in June 2022, leaving her home 'fully open to the elements' and in an 'unsafe condition'. In her victim impact statement, read to the court, she expressed how her family felt they had 'missed out on a year of our lives', describing the experience as 'incredibly harrowing'.
Investigations by The Insolvency Service also uncovered concerning financial movements, including almost £400,000 paid from the business account referenced as 'MG Haslam Expenses', a £75,000 loan vanishing within weeks, and over £63,000 in cash withdrawals. Furthermore, a personal account, into which customers were directed to pay, showed transfers exceeding £77,000 to Haslam's daughter. Mark Stephens, Chief Investigator at The Insolvency Service, emphasised that fraud is not a 'victimless crime', underscoring the profound human cost of Haslam's actions.