Michael Haslam,the 74-year-old director of the insolvent M and J Builders, has avoided prison time following a successful appeal. The construction businessman was previously sentenced to 28 months for defrauding eight families of more than £200,000 between 2021 and 2022.
The £200,000 cost of M and J Builders' failed projects
Michael Haslam directed a scheme that extracted over £200,000 from eight different families to fund failing business operations. According to the report, this money was intended for construction work but was instead used to bankroll other projects, leaving the original clients with unfinished or dangerously substandard results.
The financial impact on individual households was devastating. One woman, who was living with a partner and an infant, transferred more than £47,000 into Haslam's personal account in early 2022, only to have all work cease three months later. This left her property in an unsafe condition without running water, a situation exacerbated by the impending liquidation of the company.
Other victims faced similarly harrowing circumstances, including a family with two adult children with special needs who lost nearly £18,000. For many, the damage was so extensive that local councils advised total demolition rather than simple repais.
Lady Justice Whipple’s decision to suspend the 28-month sentence
An appellate panel has overturned the immediate imprisonment of Michael Haslam, replacing his 28-month custodial sentence with a two-year suspension. While the initial sentence handed down by Judge Shaun Smith KC was intended to punish the deliberate fraud, Lady Justice Whipple noted that the ruling sat on the "borderline" between incarceration and a suspended term.
The decision to grant a suspended sentence includes a requirement for Haslam to complete 160 hours of community work. Lady Justice Whipple acknowledged that the decision was influenced by the potential conflict between immediate imprisonment and previous statements regarding the likelihood of the defendant serving time.
The insolvency of M and J Builders and its 2022 winding up
M and J Builders entered a cycle of financial instability long before its final collapse, having struggled with insolvency since 2019. The company was eventually wound up by the High Court following a petition filed in November 2022, after it failed to meet its obligations to creditors.
This pattern of behavior reflects a broader, troubling trend in the construction industry where directors use upfront payments from new clients to service existing debts. As the report highlights, Haslam continued to solicit funds even as the business became increasingly unable to satisfy its creditors.
The missing path to restitution for unpaid subcontractors
Significant questions remain regarding how the victims and unpaid suppliers will ever be compensated for their losses. While Haslam has avoided prison, the source does not clarify if any financial restitution has been ordered to help the families rebuild or to pay the subcontractors left in debt.
The financial devastation extends beyond the eight primary families to include various suppliers and tradespeople. As reported by the source, one victim remains unable to fund the necessary reconstruction of her home, even after receiving demolition advice from the local council.
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