West Berkshire Council - Heir Hunting Company found guilty of Fraud

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Heir Hunting Company found guilty of Fraud

West Berkshire Council has successfully prosecuted a fraudulent 'Heir Hunting'
company.
Issued on: 17 July 2013
The case, which was brought by West Berkshire Council's legal team,
resulted from an investigation by the West Berkshire and Wokingham
Trading Standards Service, following a complaint from a local resident.
Edinburgh-based heir hunting company World Wide Genealogy Ltd,
formerly known as Beneficiaries Ltd (Beneficiaries Ltd), was engaged by a
solicitor dealing with the estate of a lady who had died without leaving a
will, in order to locate any potential beneficiaries of the estate.
Beneficiaries Ltd 'instructed' another company called Global Archives Ltd to locate potential heirs.
The investigation centred around fraudulent statements made to three members of the same family by
Alexander Pilley, a director of Global Archives Ltd, during visits to their homes in 2009. In each case the
family member was informed that that they may be eligible to inherit money from the estate of someone that
had died without leaving a will. They were each asked to sign a contract which committed them to paying
40% of any inheritance in commission and all expenses the company had incurred, without knowing who the
relative was that had died and how much money was involved.
The Jury heard all three were told by Mr Pilley that he did not know how much money was involved and, in
the case of two of the family, that he did not know who had died. In the case of the third member the question
was not answered despite being asked twice. They were told if they didn't sign these contracts they would
not be entitled to any inheritance.
The investigation uncovered evidence to show that Mr Pilley knew that these statements were false at the
time that they were made as it was known that the deceased was an aunt of the individuals concerned and
the residual value of the estate was approximately 213K. It eventually transpired that there were five living
relatives of the deceased, three in the UK and two in Canada, who were entitled to benefit from the estate.
The companies commission and expenses came to almost 132K + VAT. The expenses included of nearly
7K + VAT for the visits that took place over two days to the three UK beneficiaries. Many of these expenses
were known but not revealed at the time they were asked to sign the contract. Each UK beneficiary was
eventually told they would receive 10,721.23 but they have not received a penny to date.
The investigation also demonstrated that the companies involved were in fact for all intents and purposes
operated by the same individual. Mr Pilley claimed to be acting for his own company Global Archives Limited
which was contracted to Beneficiaries Ltd. However, Global Archives Limited and Beneficiaries Limited had
strong connections with 100% of the shares in Beneficiaries Ltd being held by Mr Pilley's mother-in-law who
was in her 90's and who lived at the same address.
The Jury were asked to consider the relationship between Mr Pilley and Beneficiaries Ltd of which he was
neither a director nor a member of staff.
As a result of the above, Beneficiaries Ltd, were found guilty at Reading Crown Court on the 11th July 2013
of ten counts of Fraud by False Representation contrary to Section 2 of the Fraud Act 2006. The unanimous
verdict followed a three day trial at which the defendant company was unrepresented. The Jury in convicting
the company therefore agreed with the prosecution that to all intents and purposes Mr Pilley was
Beneficiaries Ltd.
Mr Pilley was found to be unfit to plead on the 8 July 2013. A separate jury therefore went on to consider
whether Mr Pilley did 'the acts and omissions' which comprised the offences. This procedure did not require
them to consider dishonesty, merely whether the statements that were made were false and whether
misleading omissions were made. On the 16 July 2013, this jury returned a special verdict against Mr
Alexander Pilley concluding that Mr Pilley had done the 'acts and omissions' complained of.

http://www.westberks.gov.uk/index.aspx?articleid=27216

18/07/2013

West Berkshire Council - Heir Hunting Company found guilty of Fraud

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Following the verdict His Honour Judge Parkes QC adjourned the matter against the Company for
sentencing.
Councillor Dominic Boeck, West Berkshire's Executive Member for Trading Standards said, "This was a very
complicated case but importantly, it establishes the principle that companies operating in these sectors
cannot mislead and lie to people whilst asking them to hand over potentially large sums of money. The
Council will be asking the relevant Government department what more can be done to protect the interests of
potential beneficiaries in circumstances like this. It simply is not right to ask people to sign a contract knowing
little or none of the salient facts while being misled about the other party's knowledge."
Anyone wishing to report a trading standards matter should contact Citizens Advice Consumer Service on
08454 040506. Any West Berkshire or Wokingham Business looking for advice should contact the trading
standards helpline 01635 519930. Alternatively e-mail tsadvice@westberks.gov.uk

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This page was created on 17/07/2013

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18/07/2013