The Serious Fraud Office (SFO) has arrested four people on suspicion of conspiracy to defraud as a result of an investigation into companies involved in unacceptable works in the Energy Company Obligation 4 (ECO4) projects
The arrests are the result of raids carried out on three firms as part of an investigation into suspected ECO4 scheme fraud, involving projects valued at £44 million between 2022 and 2024.
The companies involved are Warmfront, South Coast Insulation Services, and JJ Crump.
Two commercial sites in Cannock and Killamarsh were searched, alongside the homes of the four individuals involved, who have not been named.
A sickening crime against a scheme to help vulnerable people stay warm
Solicitor general Ellie Reeves KC MP said: “This scheme was meant to tackle fuel poverty and improve people’s homes. Instead, the Serious Fraud Office is investigating claims that £44m in public money was paid to companies that allegedly did little more than submit false invoices for work they failed to carry out.
“I am sickened by those who want to profit off the back of a scheme designed to help vulnerable people, and I’m confident the SFO’s investigation into allegations of substantial fraud will deliver the answers victims and the public deserve.”
Public appeal for information
The statement by the SFO alleges that the three companies “were involved in a sophisticated conspiracy across the country to undermine a government scheme by submitting claims where little or no work was undertaken. It is suspected that energy companies were defrauded of at least £44 million in this way.”
There is now a public appeal to gather information regarding Warmfront, JJ Crump, and South Coast Insulation Services in connection with their involvement in the scheme.
Graham McNulty QPM, director of the Serious Fraud Office, said: “This scheme was designed to reduce carbon emissions, help households cut costs and stay warm – instead, in many cases, we suspect little or no work was done. We are particularly keen to hear from installers and assessors who worked on these contracts and know what really happened. Our door is open, and coming forward is the right thing to do.
Anyone with any information should contact confidential@sfo.gov.uk.
Construction remains a hotbed for potential fraud
Earlier this month, three men were arrested for helping over 70 people cheat on a health and safety construction exam via Bluetooth earpiece, making over £60,000.
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