A 73-year-old fraudster has been jailed after conning people in the north-east out of £380,000 through his wind turbine firm.
Robert McKechnie took thousands from three different victims, promising to put up wind turbines for them in exchange.
His unfortunate victims shelled out, often under pressure to make quick payments, expecting to make money from the venture.
But McKechnie spun them a web of lies and the promised turbines never materialised.
None of his victims recovered their hard-earned cash.
Fiscal depute Katy Begg told Aberdeen Sheriff Court McKechnie defrauded two brothers from Fraserburgh, Gary and Stephen Mannett, out of more than £150,000 each other turbines he never delivered.
Their father Sydney Mannett previously told the Evening Express that the money was his and had been an endowment for his sons, and said: “This fraud has had a huge impact on my family. What this man did to us was terrible – absolutely horrendous.”
Ms Begg told Aberdeen Sheriff Court: “The complainers, along with their parents, met the accused and agreed to purchase two turbines; one for each of them.
“The accused assured them the money they paid would be deposited into a secure holding account and, should they cancel, it would be refunded to them.
“Forty percent of the total cost was to be paid upon ordering, with the rest due upon delivery and installation. The accused told them the turbines would pay for themselves within three years.”
On August 31 2011 the brothers transferred £66,612 each into the bank account of McKechnie’s firm for their respective turbines on the understanding the turbines would be delivered and installed within six months.
On May 10 2012 McKechnie ordered two turbines of a different variety to those discussed with the brothers, worth £112,842.71 each.
Ms Begg said: “On May 28 2012, the complainers received letters from UK Wind Energy Scotland Ltd stating that the turbines which they had ordered were no longer deemed efficient. They recommended a new turbine and advised that the discounted price was £167,400 plus £8,370 VAT for each turbine.
“The letter stated these needed to be ordered quickly as there were only three available for delivery in September 2012. The letter further stated that 90% of the cost of the turbines had to be paid immediately to ensure delivery. This was untrue.
“The complainers felt under pressure from the accused to make quick payments to secure the product, but were persuaded to upgrade because they were finally getting a date for the completion of the project. They paid the additional £88,250.40 each to the bank account of UK Wind Energy Scotland Ltd.
In June 2012 McKechnie’s firm paid only the 15% deposit to the company he ordered the turbines from, citing issues with the brothers’ finances as the reason for not making any further payments.
The turbines were later sold to another company.
In September 2012 the brother enquired as to why their turbines had not been delivered and were told there was no point taking delivery until a site had been found due to storage issues.
Assistance to find a suitable site was never forthcoming.
Ms Begg said: “In January 2013, the complainers requested a refund from the accused as no site agreement had been reached.
“The email was not responded to, however during a subsequent telephone conversation with the accused, one of the brothers was advised the money was gone as there was an issue with the turbine supplier and that this had resulted in his bank accounts being frozen.
“There was never any issue with the supplier.
“The complainers tried to recover their money through a solicitor unsuccessfully.
All three complainers contacted the police regarding this.”
McKechnie also conned a bed and breakfast manager out of nearly £80,000 after convincing her to invest in a turbine in March 2010.
The conman told the woman the turbine would make her £56,000 a year.
Ms Begg said: “A contract was agreed and drawn up. The accused was to source and purchase the turbine, locate a site and then install it. A price of £83,000 plus £4,150 VAT was set.
“On August 12 2010, the complainer made an initial deposit of 50%. She transferred £43,575 to the bank account of UK Wind Energy Scotland Ltd. This was in response to an urgent request from the accused to pay within 24 hours.
“After nine months the accused had still not located a site. This was despite pressure from the complainer to do so.
“However, on 4 May 2011, the complainer paid the next 40% instalment. She transferred a further £34,860 to the bank account of UK Wind Energy Scotland Ltd. This was again in response to an urgent request from the accused to pay within 24 hours.”
The second payment had been “due on delivery” and the woman had believed the turbine had been delivered and was being stored at a business premises in Clackmannanshire.
Ms Begg said: “The complainer was never given access to view the turbine, despite asking. The accused made continual excuses to prevent any such viewing.
“The accused continued to make excuses as to why he could not find a suitable site. The complainer then made efforts to locate a site on her own, having been led to believe the turbine was ready for installation when a suitable site was found.
“In December 2011, following a failed attempt to obtain planning permission for a site she had found in Longhaven, she asked for a refund. The original contract included a clause stating that if planning permission was refused, the deposit payment would be refunded in full.
“The accused initially said that he could not issue a refund as too much time had passed. When the complainer pressed him further she was then advised the turbine would have to be returned to China, and she could not be refunded until the manufacturer in China refunded the accused.
“The complainer spoke to the accused a number of times thereafter. She never received a refund.
“There is no indication in any paperwork recovered that that turbine was ever delivered to Scotland, or that any turbine was ever returned to China.”
McKenchnie previously pled guilty to three charges of fraud.
Defence agent Brian Holliman said his client had taken the orders “in good faith”, adding: “These orders were placed, money paid over and he accepts the turbines were never supplied to these individuals.
“Notwithstanding his plea, his position is the turbines were only not supplied due to the financial collapse of his business.
“Perhaps had he realised at an earlier stage this business wasn’t working out he wouldn’t find himself where he does.
“He certainly didn’t make any money out of the business. The firm itself never posted a profit.
“He does have genuine remorse that anyone lost out as a result of his actions. He appreciates the complainers lost significant amounts of money.
“He lost everything he had, including his business, his former partner and his pension.
“He attributes the failing of the business to his deteriorating health which resulted in him having a stroke and developing a heart complaint.
“There is no prospect of repayment. He lives in a rented caravan.”
Sheriff William Summers said: “In my assessment the gravity and scale is such there is no appropriate penalty other than the imposition of a custodial sentence.”
He ordered McKechnie, of Crofthead Holiday Park, Ayr, to be jailed for 27 months.
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