Builder’s Fraud Leads to Legal Consequences
On 2 July, Michael Haslam was handed a 28-month prison sentence for fraudulent trading, which has since been suspended by the Court of Appeal during a hearing on 26 August. His incarceration will now be deferred for two years, during which he must adhere to a rehabilitation order and complete 160 hours of community service.
Haslam, who operated M&J Builders Limited, defrauded seven customers out of more than £200,000 between 2020 and 2022, fully aware that his company was insolvent. Victims were left with hazardous, incomplete constructions, with one family informed that their extension might need to be entirely demolished. Rather than fulfilling his contractual obligations, Haslam diverted the funds for personal use, including cash withdrawals, online shopping, and payments to his family.
Victims Left in Financial Distress
Haslam’s deceitful practices have had a devastating impact on his victims, who often discovered his services through local advertisements. Many homeowners, seeking home improvements, found themselves out of pocket and facing dangerous living conditions, including unfinished structures and lack of basic utilities.
The Insolvency Service’s investigation revealed that funds from Haslam’s business accounts were misappropriated for personal expenses rather than construction projects. In May, Haslam pleaded guilty to one count of fraudulent trading, and on 1 July, he was sentenced to two years and four months in prison at Derby Crown Court. Additionally, he has been barred from serving as a company director for 15 years.
Devastating Impact on Homeowners
The total losses incurred by Haslam’s victims amount to approximately £210,000. One victim, a woman from Darley Abbey, had planned to renovate a property for her retirement, but after paying over £150,000, she received only £40,000 worth of work. With a site manager promised but never arriving, her project was left unfinished and littered with debris, forcing her to spend an extra £18,000 to clean up before hiring another builder.
In her victim impact statement, she expressed feelings of utter despair upon realising the extent of her financial loss, stating: “I felt angry, bitter, and frankly shocked that someone could take advantage of me in that way.” Her experiences reflect the emotional and financial turmoil faced by many victims of Haslam’s fraudulent activities.
Safety Risks and Emotional Toll
Another victim, who paid £47,760 for a single-storey extension, found her home left unsafe and without running water for seven months. When Haslam returned to the site demanding an additional £6,600 to resume work, no further progress was made, leaving her to hire another builder to make her home habitable.
This victim described the ongoing trauma of discovering dangerous structural faults, which not only jeopardised her family’s safety but also led to prolonged periods of anxiety and distress. “As a family, we feel like we have missed out on a year of our lives,” she lamented.
Unfinished Projects and Financial Ruin
Other victims from Allestree reported similar experiences. One individual paid £12,080 for a kitchen renovation, only to find the project abandoned with significant safety violations. Another victim, a mental health nurse, signed a contract for a single-storey extension shortly after Haslam was advised of his company’s insolvency. Despite paying nearly £36,000, the promised work was never completed, leaving her family without secure doors or windows.
These accounts illustrate the severe emotional and financial repercussions of Haslam’s actions, with victims describing feelings of violation and helplessness. One victim noted: “We chose Mick Haslam not because he was the cheapest, but because we believed we could trust him.” That trust, however, was shattered by his fraudulent conduct.
Investigative Findings and Consequences
The Insolvency Service uncovered approximately £400,000 in transactions from Haslam’s company account under the guise of “MG Haslam Expenses.” Notably, a £75,000 loan received by the business disappeared within weeks, alongside substantial cash withdrawals and numerous personal expenditures, including almost £19,000 spent on online shopping.
Mark Stephens, Chief Investigator at the Insolvency Service, emphasised that fraud carries significant consequences for victims. He stated, “Fraud is not a victimless crime. Hearing how Michael Haslam has ruined his victims’ properties really brings home the human cost of what he did.” The Insolvency Service remains committed to pursuing those who exploit innocent individuals for personal gain.
Further Information on Protecting Yourself
Michael Haslam, residing at Oaklands Avenue in Littleover, Derby, was born on 27 June 1952. His company, M&J Builders Limited, holds the registration number 09943727. For directors seeking guidance on their responsibilities, the Insolvency Service offers resources through their Director Information Hub. Additional information regarding financial misconduct and the work of the Insolvency Service is also available for those needing to report similar cases.