Record footage was Kennedy’s downfall
SLIMY Stewart Kennedy was investigated after his crooked scams were exposed in the Daily Record in 2011.
We heard from eager investors and desperate Scots who turned to Kennedy in time of need, only to find their fortunes worsened after he pocketed their cash.
In secret footage filmed by the Record, he called victims who lost £15,000 “clowns”.
And he was caught on tape threatening to set “the heavies” on a business associate, sneering: “They’ll f****n’ tie him up ‘til he coughs the money.”
In 20122012, after we revealed howh at least 20 Scots were duped by the frfraudster, Kennedy’sKenne Cost Reduction Redu ServicesServ firm were wer wound up on the order of then th business secretary se Vince Cable. Ca
Most clients we spoke to lost all ttheir money and Kennedy pocketed pocke £105,000 for himhimself in just nine ninemon months.
One vicvictim of the firm, a 5353-year-old business consultant c who lost £15,000, said: “The Record made enough noise that eventually the police and other authorities looked at this.”
Police consulted with Westminster’s Companies Investigation Branch, who found that franchisees were misled with false testimonials and unrealistic earnings forecasts of up to £100,000 per year.
The investigation found the firm brought in just £38,780 from 13 clients using the debt review service between July 2010 and January 2011.
Most of the cash coming in was from the franchise investors – who lost out big-time.
The CIB report said: “Only five of 20 franchisees earned anything at all from their investment, with none of the moneyback guarantees having been honoured.
“In contrast, the company generated £357,500 in franchisee fees, of which at least £71,000 was expended for the personal benefit of its sole director who received a further £34,000 in salary, expenses and commission.”
After the Record’s initial article, Kennedy dumped staff without pay and ceased trading at Cost Reduction Services (2010) Ltd. He then started trading as Cost Reduction Services (UK & NI) Ltd.
Around the same time, he told franchiseholders the company had ceased trading and they’d lost their money.
In 2013, as a result of our revelations, twicebankrupt Kennedy was banned from directing a company for 12 years.
Franchisees were informed by text message of the scheme’s closure, which Kennedy blamed on a court action raised by recruitment agency Rise, who were owned by Sir David Murray.