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Derby Builder Jailed for £200,000 Fraud Leaving Homes in Ruins

A Derby builder has been sentenced to prison for fraudulent trading, leaving seven customers with dangerous, unfinished homes. Michael Haslam took over £200,000 while his company was insolvent, spending funds on personal items.

  • Michael Haslam, 74, was jailed for two years and four months for fraudulent trading.
  • He defrauded seven customers of over £200,000 between 2020 and 2022.
  • Victims were left with dangerous, incomplete building projects, some requiring extensive remedial work.
  • Funds were diverted to cash withdrawals, online shopping, and payments to family members instead of project completion.
  • Haslam has also been disqualified as a company director for 15 years.

A Derby builder's downfall has been meted out in court, where a 74-year-old man was sentenced to two years and four months' imprisonment for defrauding seven homeowners of over £200,000. Michael Haslam, who operated M&J Builders Limited between 2020 and 2022, knowingly took significant upfront payments from customers despite his company being insolvent and unable to complete the promised work.

Insolvency Service investigations revealed that rather than using customer money to progress building projects, it was spent on personal expenses such as cash withdrawals, online purchases through retailers like Amazon and eBay, and payments to family members. This left victims with unfinished homes posing serious health risks, some of whom faced substantial additional costs to rectify the damage and make their properties habitable.

One victim, who had saved for a retirement renovation, paid Haslam's company over £150,000 but only received an estimated £40,000 worth of work. She described feeling 'completely distraught' and losing her planned retirement, saying that Haslam's actions were part of a 'pattern of behaviour' causing significant financial and emotional harm.

Another victim endured seven months without running water due to an unsafe extension and had to hire new builders simply to make her home safe after exhausting funds for the original project. She had been relying on Haslam to complete work that would have made her home habitable.

Haslam, of Oaklands Avenue, Littleover, pleaded guilty to one count of fraudulent trading in May following the Insolvency Service's investigation. As a result of his conviction, he has been disqualified from acting as a company director for the maximum period of 15 years, intended to prevent him from engaging in similar activities in future.

The total losses incurred by the seven victims amount to approximately £210,000. This case serves as a stark reminder of the devastating impact that rogue traders can have on individuals, causing financial ruin and disrupting their lives and homes.

Why this matters: This case serves as a stark warning to homeowners about the risks of fraudulent builders and underscores the importance of due diligence when commissioning home improvement projects. It also demonstrates the legal consequences for individuals who exploit customers through dishonest business practices.

What this means for you: What this means for you: This story underscores the need for extreme caution when hiring contractors for home renovations. Always verify a builder's credentials, check references, obtain detailed contracts, and avoid large upfront payments to protect yourself from potential fraud.

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