Six construction companies were ordered by the High Court to shut down operations, following an investigation by Companies Investigation Branch (CIB) of the Insolvency Service.

The companies were found to have obtained residential building work by advertising on the internet and approaching potential customers who had applied to local authorities for planning permission.

After a building contract price was agreed, a sizable deposit would be taken. However, work would be deliberately abandoned shortly after commencing.

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All six companies were found to be inter-related and the investigation also revealed serious concerns that three of the companies were controlled by Mr Mark Edward Dixon, an undischarged bankrupt.

All were found to have inadequate accounting records and a complete lack of commercial probity.

In ordering the companies into liquidation Mr Registrar Simmonds said: "The evidence in these cases and the matters complained of show a strong prima facie case to wind up the companies in the public interest, notably the cold calling and direct approach of people who had applied for planning permission.

"Deposits would be taken, a minimal amount of work done and they would then disappear," he concluded. "The interaction of the companies is designed for the benefit of the directors, Mr Dixon in particular, without any regard for commercial probity."

(VB/JM)