Press release

Companies that put the ‘con’ into re-con are switched off following investigation

Three connected companies who carried on business as vehicle engine reconditioning and repairers were wound up by the High Court on 19 January 2015, following an investigation by the Insolvency Service.

Reconditioned Engines Ltd (REL), Unique Engines Ltd (UEL), and latterly 1ST Choice Engines Ltd, were the latest trading guises in a long line of companies offering engine reconditioning and repair services to the public, dating back to 1982. REL and UEL both traded from the same premises at Units 9 – 11, Saxon Way, Harmondsworth.

REL traded for a period of approximately 10 months, between October 2012 and August 2013. REL’s director, Roy Dart, gave an undertaking to the High Court in June 2013 that he would seek to place REL into voluntary liquidation by 27 August 2013. Mr Dart failed to comply with that undertaking. The business of REL was then effectively transferred to UEL, who continued to trade for a matter of months before it was evicted from its trading premises in October 2013 after it had failed to pay rent and other bills. The company was abandoned at that time, with customers vehicles left on site for the landlord and its agents, along with the police, to repatriate to their owners.

In total the 3 companies had generated over 350 complaints in their brief trading histories, with common threads of complaint across the companies, namely:

  • unwarranted inflation of quotes after vehicles were taken into respective companies‘ possession, work repaired to an unsatisfactory standard and excessive retention of vehicles
  • A number of those complaints featured allegations of threats, intimidation and assault on customers by respective company staff

1ST Choice Engines Ltd traded from premises at Unit 5, Perth Industrial Estate, Slough, SL1 4XX, a large warehouse sized building, where customer vehicles were kept whilst under repair. The investigation found that the recorded director and shareholder of the company, Gary Driscoll, played little or no part in the management of the company. The company was instead managed by Paul Dockerill.

1ST Choice Engines Ltd was placed into provisional liquidation on 16 December 2014, following a petition presented by the Secretary of State. The Official Receiver was appointed provisional liquidator at that time, and has administered the affairs of the company since that time, with the business of the company shut down by the Official Receiver on 17 December 2014. On that same day, Thames Valley Police executed search warrants at the business premises and a number of other addresses, where arrests were made. They subsequently issued a press release which commented favourably on the co-ordinated approach between Government agencies.

1st Choice Engines Limited and its predecessors REL and UEL all used common websites to promote their business, including the following:

  • www.reconditioned-engines.co.uk
  • www.saabengines.co.uk
  • www.rangeroverengines.co.uk
  • www.engine-shop.co.uk
  • www.remanufactured-engines.co.uk

1st Choice Engines Ltd and its predecessors all operated the same business model, whereby it offered lead in engine reconditioning quotes substantially less than comparable businesses offering engine reconditioning services, along with a relatively inexpensive nationwide vehicle recovery to site service. However, once customer vehicles were in the possession of the company this led to a consistent pattern whereby those lead in quotes were often doubled and more. The basis for those increases was remarkably similar in many cases, irrespective of the actual condition of the engines in need of repair. The practice of all the companies was to significantly inflate final quotes without due cause.

Where customers declined or refused to accept the falsely inflated quotes, they were faced with their vehicle engines being left dismantled in pieces in the boot and back seats of their vehicles, along with a bill for the company having dismantled the engine. Customers’ vehicles were in essence held to ransom by the company and customers were effectively left with little choice other than to pay the inflated fees.

Those who did object to the company’s sales practices and questionable workmanship in those cases where the company claimed to have undertaken repairs, often found themselves on the receiving end of threats, intimidation and assault by staff. Customers had little or no financial redress, as the company and its predecessors operated on a cash basis.

Commenting on the winding up of the 3 companies, David Hill, a chief investigator with the Insolvency Service, said,

These companies operated in a way designed to draw in and then rip-off investors.

There should be no doubt that the Insolvency Service will continue to take robust action whenever serious failings are discovered and in particular against contemptible companies as in this case, preying on customers.

Notes to Editors

1st Choice Engines Ltd, (registration number 08645591), was incorporated on 12 August 2013. The registered address of the company is The Insolvency Service, 4 Abbey Orchard Street, London, SW1P 2HT. REL, (registration number 08263258), was incorporated in October 2012. Its registered office is at 8 Nelson Road, Whitton, Twickenham, TW2 7AU. UEL, (registration number 08210830), was incorporated on 12 October 2012. Its registered office is at 9 – 11 Saxon Way, Harmondsworth, West Drayton, UB7 0LW, being its former trading premises, which it was evicted from in October 2013.

The petitions to wind up the companies were presented in the High Court on 3 October 2014 under the provisions of section 124A of the Insolvency Act 1986 following confidential enquiries by Company Investigations under section 447 of the Companies Act 1985, as amended.

Company Investigations, part of the Insolvency Service, uses powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Innovation & Skills (BIS).

Further information about live company investigations is available.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice. Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is [available}(https://www.gov.uk/government/organisations/insolvency-service).

All public enquiries concerning the affairs of the companies should be made to: The Official Receiver, Public Interest Unit, 4 Abbey Orchard Street, London, SW1P 2HT. Telephone: 0207 637 1110 Email: piu.or@insolvency.gsi.gov.uk.