P4U sub dealers sentenced


Directors of a group of mobile dealerships have been sentenced to jail and community service for swindling Phones 4U out of £210,000 while sub-dealing via the retailer. They were convicted of massive clawback fraud totalling £1.6 million.

Jonathan Shulton and James Cahill pleaded guilty to abusing the commission system and will face two years and two months in prison and 240 hours of community service, respectively, as well as directorship disqualifications and confiscation orders.

The pair ran several dealerships and connected networks via Phones 4U. They took advantage of delays on clawbacks to process and take commission on bad connections, before shutting dealerships down when Phones 4U demanded repayment.

They then created new dealerships on the same premises using the same staff to continue the process.

The scams also left Royal Mail out of pocket by £260,000.