Manager at firm responsible for installing fire alarms at Grenfell Tower is jailed for six years

Lee Wylie admitted bribery and theft and was sentenced to six years imprisonment

A former manager at the company responsible for installing fire alarms at Grenfell Tower has been jailed for six years for taking £800,000 in bribes.

Lee Wylie, an £88,000-a-year divisional director at Lakehouse Contractors Ltd, told sub-contractors they needed to pay £100 sweeteners to guarantee jobs or he would go elsewhere, Southwark Crown Court heard.

He helped secure contracts for Richard Lee, 35, Mark Middleton, 51, and Stephen Ellis, 51, while Leslie Ratty, 68, laundered tens of thousands of the corrupt payments through bank accounts.

Wylie, 47, also received £10,000 in bribes from Costas Polycarpous, 42, whose firm Polytech supplied emergency lighting, fire alarms and hard-wired smoke alarms to Lakehouse. 

Prosecutor John Hardy said although Lakehouse had supplied the fire alarms at Grenfell this case is ‘wholly unconnected to the tragic events’ which took place.  

Wylie, of Basildon, Essex, used the money to splash out on luxury holidays, cars, watches, and even a specially made grandfather clock.

He admitted bribery and theft and was sentenced to six years imprisonment.  

A whistleblower who reported fraud within Lakehouse in 2013 sparked an investigation by Hackney Homes, which provides social housing for the London borough.

The wrongdoing was referred by the council to the Metropolitan Police in July 2014.

Lakehouse had been sub-contracted by Hackney Homes to carry out a fire risk assessment on properties owned by the council.

In turn they sub-contracted companies including Spicers Carpentry, run by Ellis and Lee, and MJM Ltd, run by Middleton.

Judge Michael Gledhill, QC, said: ‘One of Hackney Homes’ principal contractors were Lakehouse Property Ltd, who are well known and respected.  

‘Outsourcing for public services is a fact of life. Regrettably it also provides fertile ground for corrupt practices.

‘Those issuing contracts can demand bribes in return for the contracts and the contractors can overcharge for work not actually done.

‘Such malpractice can be easily covered up and is very difficult to detect.

‘This case shows starkly what can happen when public work is outsourced.’

But senior management at Lakehouse became concerned about how the fire risk assessment was carried out.

Prosecutor John Hardy said although Lakehouse had supplied the fire alarms at Grenfell this case is ‘wholly unconnected to the tragic events’ which took place 

‘In August 2013, a further allegation came to light – that payment for work by subcontractors had been invoiced when no work had actually taken place,’ said prosecutor Mr Hardy.

Most of the invoices, totalling more than £800,000, went to a ‘sham’ company called K & R consultants, which existed solely for accepting the money, the court was told. 

The court heard that Ellis, Lee and Middleton paid ‘out of reluctance and with no particular enthusiasm’.

London Fire Brigade failed to learn from 2009 Lakanal House blaze that killed six and senior officers didn’t understand risks of cladding despite training on the topic

The Lakanal House fire in 2009 in Camberwell killed six people

The Lakanal House fire in 2009 in Camberwell killed six people

London Fire Brigade failed to learn from a fatal fire at a tower block in Camberwell eight years before the Grenfell Tower disaster, the inquiry has found.

The Lakanal House blaze in July 2009 killed six people and injured at least 20 more when flames ripped through the 14-storey block in South London.

But the report by chairman Sir Martin Moore-Bick found the LFB ‘failed to learn the lessons of the Lakanal House fire’, such as the danger of assuming crews would always reach callers.

The report also claimed senior fire officers did not understand the risks of cladding despite being trained about the topic.

Flames ripped through the 14-storey block in South London in 2009

Flames ripped through the 14-storey block in South London in 2009

London Fire Commissioner Dany Cotton infamously told the inquiry that preparing for Grenfell would have been akin to preparing for landing a spaceship on the Shard.

But Sir Martin said this evidence ‘only serves to demonstrate that the LFB is an institution at risk of not learning the lessons of the Grenfell Tower fire’.

In a pre-recorded video message, Sir Martin said: ‘I consider that these represent significant systemic failings in the organisation or the LFB and show that it had failed to learn the lessons of the Lakanal House fire.

‘But at the same time I find that, following the refurbishment, the external walls of the building did not comply with the Building Regulations because they did not adequately resist the spread of fire over them. On the contrary, they promoted it.’

Grenfell United said senior firefighters had failed to learn the lessons from the Lakanal House blaze and called on them to ‘stop hiding behind the bravery of their frontline firefighters’.

The group said: ‘While nothing can ever bring back our loved ones that passed away in the fire, this is a strong report with a forensic examination of the events of the night and clear recommendations that if implemented will save lives.

‘The Government cannot afford to repeat the mistakes of Lakanal and ignore them. Justice means different things for all of us but the truth needs to be at the heart of our collective healing. We have been waiting a long time for this report.’ 

Deborah Coles, of charity Inquest which advises people on state-related deaths, said: ‘The residents of Grenfell Tower were catastrophically failed before, during and after the fire.

‘Key findings of this report are strikingly similar to those which followed the Lakanal House fire in 2009. Had previous recommendations been implemented, those in Grenfell Tower may have been safe.’ 

‘The position of Constantinos Polycarpou is somewhat different,’ said Mr Hardy.

Charles Rees QC, defending Wylie, said the sub-contractors were already employed by Hackney Council, and the authority set their rates.

‘They were each appropriately qualified to do the work they were required to do.

‘In relation to each piece of work, no member of the public or anyone else was placed at a risk of being in jeopardy or in danger.’

Mr Rees added that there had been ‘no loss’ to the taxpayer or public money.

Mark Milliken-Smith, defending both Lee and Ellis, said they have found themselves in ‘substantial financial distress’ because of Wylie.

He said they paid out of a desire to keep what they had rather than enrich themselves.

‘They were certainly not living lavish lifestyles as a result of the money they paid,’ he added.

Christopher Harding, defending Ratty, said he had suffered a brain bleed after a stroke in 2012.

Doctors had confirmed that the brain injury affected, among other things, his recollection of the events covered in the trial.

The judge ruled that the sub-contractors had played a lesser part in the bribery than Wiley and spared them jail.

Wiley, wearing a grey suit, remained expressionless as he was led away to the cells.

Judge Gledhill, sentencing, said: ‘Lee Wylie was first employed by Lakehouse in October 2007 and by 2012 he was the company’s divisional manager, earning over £80,000 a year plus allowances.

‘He was responsible for projects such as installation of fire alarms and emergency lighting.

‘Although he did not himself award Lakehouse contracts to his sub-contractors, he could decide what work subs were given and this proved to be a very powerful lever indeed.

‘In April 2013, a freelance quantity surveyor made a number of allegations of corrupt practice and fraudulent activity on projects of fire assessment.

‘[The sub-contractors] were paying bribes or kickbacks to a company called K and R Ltd in return for securing Lakehouse work.

‘Middleton said Lee Wylie arranged a meeting in which he explained how much Lakehouse work was available. However in order to get that work he would have to pay Wylie £50 per job if there were no payments the [work] would be given elsewhere.

‘The rate was soon increased to £100 per job.

‘Six months after smoke alarm work had been completed, false invoices of £72,000 for work never done were made.

‘Middleton received money from Wylie and paid it in. He said he’d done it because Wylie was a bully he had a mortgage and a family to support.

‘When K & R Mortgage was analysed it was readily seen as a sham company. Its sole purpose was to camouflage the payments for work not actually done.

‘Moneys were then used for the benefit of Wylie…and partners to fund high living, expensive watches, holidays and cars.

Lakehouse suspended Wiley in September 2013 and reported the allegations to police a few days later.

‘Wiley was patently the principal actor behind this extremely squalid scheme.

‘He used his position to persuade otherwise honest men to pay bribes in order to obtain work.’

The judge told Wylie there was no doubt he was the ‘prime mover of this sophisticated and long-running fraud’ that was motivated by simple greed.

Polycarpou, of Barnet, north London, denied but was convicted of bribery. He was sentenced to nine months’ imprisonment suspended for two years.

Ratty, of Braintree, Essex, admitted one count of money laundering. He was sentenced to 12 months imprisonment suspended for two years.

Ellis, of Maldon, Essex; Middleton, of Ruislip, west London, and Lee, of Coggeshall, Colchester, all admitted bribery and theft.

They were sentenced to 18 months’ imprisonment suspended for two years each.

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