Haulier drained by con
Page 11
If you've noticed an error in this article please click here to report it so we can fix it.
• by Jack Eleavin
A veteran Northumberland haulier lost more than E100,000 after investing in a spring water business that was fleeced of cash by a conman.
David Petrie from Rhynd, Perth, was jailed for six months last week after he admitted fraudulent trading, acting as company director while an undischarged bankrupt and failing to keep proper records.
Carlisle Crown Court heard that the former Scottish Businessman of the Year enjoyed a life of luxury for nine months in 1996 while he ran Longtown Bottlers in Cumbria—although the factory had no source of drinkable spring water.
Haltwhistle haulier James Crawford, trading as JD Crawford Hauliers, was one of three investors who pumped thousands into what he thought was a legitimate enterprise, unaware that Petrie was squandering company cash on cars, holidays, and race horses. After clinching contracts with major retailers including Morrisons, Petrie even resorted to using the factory's tap water to fulfil an order.
Andrew Lowcock, prosecuting, said Crawford and two business colleagues from Haltwhistle head-hunted Petrie to run their spring water bottling business at Hopesyke Industrial Estate, Longtown, on land owned by Crawford. They believed they could find a legitimate source of spring water. It was Crawford and fellow director Rowland Webster who called in the police. When the Longtown plant closed in September it, and another bottled water business run by Petrie, had debts of ,2800,000.
Colin Harvey, defending, said his client's fellow directors failed to keep records, or to involve themselves sensibly in running the business.
"Petrie was the ultimate conman," said Ron Brownlee, manager of the HSBC Bank in Haltwhistle, who helped Petrie and his then business colleagues secure .2200,000 in grants. "He seemed to know what he was talking about, and the business plan stacked up well: ft could have been extremely profitable had it been run legitimately."
Crawford said he and Webster were each left with debts of around 1100,000. The experience taught him never to take anybody on trust, he added. If Petrie had been honest, he'd have been a fantastic businessman. We made one big mistake, and that was not getting monthly statements. But after 48 years in the haulage business I was used to dealing with people I could trust. Now, we feel let down. Petrie's basically been let off the hook—he'll be out of prison in 12 weeks."