Dozens of North Yorkshire businessmen were left to count the cost today after the fraudster they helped snare started a 12-month jail sentence.

The victims of the companies set up by Stephen Seddon could total more than 14,000 and their losses could be more than £5 million, trading standards officers have revealed. But Teesside Crown Court heard that no one is likely to get any money back.

Seddon, 33, who has several previous convictions for dishonesty, spent his crooked gains on his wedding, a QE2 cruise, a £46,000 Bentley car, a stay at New York's Waldorf Astoria hotel, holidays in Spain and Gibraltar, a boat and a holiday caravan, said Martin Bethel QC, prosecuting.

But Judge David Bryant "substantially" limited Seddon's sentence because he had preyed on businessmen, not elderly people, had been convicted of two offences of £2m fraudulent trading, not theft, and had saved the cost of a fraud trial by pleading guilty.

Seddon's barrister, Patrick Cosgrove QC, had suggested a sentence of two years which could be suspended.

Seddon, of Ash Grove, Seaham, Durham, was also banned from being a company director or manager for ten years. He is currently living on benefits and claims he has no assets.

William John Lavery, 49, of Great Salkeld, Penrith, who was convicted by a jury of one charge of fraudulent trading, was given a six-month jail sentence suspended for two years because of his kidney problems and arthritis. He was banned from being a director for five years. The judge said Lavery was probably only involved in the fraud for about five months. Seddon had taken the lead and been the main beneficiary.

Outside court, Richard Flinton, of North Yorkshire trading standards, said they would continue to prosecute those who preyed on small businesses because his department considered them as important as consumers.

Trading standards officers revealed that, in their opinion, the vast majority of the victims could ill afford to lose any money, let alone the £299 to £346 which Seddon's salesmen took from each of them. Dozens of businessmen from hotel owners to shopkeepers and others complained to them in the mid-1990s about the activities of UK Business Grants Ltd and European Business Support Ltd, for which Seddon was either director or acted as managing director.

This led North Yorkshire trading standards officers, with help from several other trading standards departments, to uncover the companies' operations from Bristol to Dublin and Inverness.

Mr Bethel said the companies' tele-sales staff and salesmen had told small businesses they could arrange for European grants for them for a fee of £255 plus VAT.

But despite taking the money, the companies did little or nothing towards getting the grants and had no staff trained in such applications.

At least £2 million went through European Business Support Ltd's bank account in under a year.

The judge said that company had been a fraud from the start, but "bigger fish" than Seddon were involved by the end.

Mr Cosgrove said Seddon had been of "significant assistance to the authorities".

see also 'Con men get off lightly'

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