Internal processes discover almost £2 million fraud at E.ON

Two executives of the energy company E.ON have been found guilty of taking millions of pounds’ worth of bribes during the development of Cranbrook – a new town in Devon.

Matt Baker and Matthew Heyward were employed by E.ON as Head of Build and Quantity Surveyor, respectively, before moving to British Gas.

Between 2011 and 2015, they accepted various bribes from sub-contracting companies working on E.ON projects.

According to Devon and Cornwall Police’s Serious Organised Crime Branch, Baker was appointed Head of Projects and tasked with delivering the district heating project for E.ON, while Matthew Heyward was employed as a Quantity Surveyor, responsible for signing off the work.

Priddy Engineering Ltd and RK Civil Engineering Ltd (RKC) were construction contractors who either had or sought a commercial relationship with E.ON.

Andrew Blunsdon of Priddy Engineering, along with Richard King and Timothy Paterson of RKC, paid Baker and Heyward more than £1.5 million over the period to secure work.

Baker, his wife Angela, and Heyward deposited the cash into their bank accounts and spent thousands on home improvements, holidays and top-of-the-range cars between 2020 and 2024.

They concealed the payments with false references and fake wage slips.

While Heyward spent most of his money on gambling and drugs, the Bakers spent theirs on property, moving house four times between 2011 and 2014, with each move described as being “tainted by fraud”.

All six were found guilty at Winchester Crown Court earlier this month on charges, including fraud, bribery and money laundering.

Baker was sentenced to three years and 10 months, Heyward to two years and six months and Angela Baker to 13 months, suspended for two years.

Meanwhile, Paterson was jailed for four years and King for two years and five months, while Blunsdon was given a 12-month suspended jail term and ordered to carry out 150 hours of unpaid work.

Speaking after the sentencing, a spokesman for E.ON said that their internal processes had enabled the company to identify the case and take decisive action.

He added that they had reported the matter to the police and fully supported their investigation, citing their zero-tolerance approach to bribery.

Commenting on the case, Roger Isaacs, National Technical Director of NIFA, said: “As forensic accountants we are often instructed following this type of conviction in relation to Confiscation Proceedings under the Proceeds of Crime Act. In such cases assets acquired with the proceeds of crime will typically be forfeited.

“It appears that the Bakers would have more assets available for confiscation than Heyward whose gambling and drug habits might have meant that he had little to show for his criminal activity.

“That said, the court also assesses the overall “benefit” arising from the crime and will order that those convicted repay it, creating a liability that lasts forever and cannot even be expunged by bankruptcy.  That means that if ever an individual who was made subject to a confiscation order acquired any wealth, even legitimately, it could be confiscated. It has been argued by some that this draconian measure gives little incentive for felons to rebuild their lively honestly”.

Sources: BBC News