Broker 'cheated fire brigades'

THE London and Hampshire fire brigades may have lost millions of pounds after being overcharged for car and equipment hire by a leasing broker. The Serious Fraud Office is investigating whether Phoenix Leasing Group of Hampshire took 'extra profit'.

Phoenix founders Kathryn Robinson and Alan Stovold helped hundreds of local authority bodies rent equipment from the leasing arms of High Street banks. The alleged overcharging by Phoenix may amount to £60m over three or four years, according to people involved with the inquiry. By spreading the overcharges among many clients, Phoenix could hide its excess charges, officials said.

SFO spokesman David Jones said: 'The SFO and Hampshire police are investigating allegations that Phoenix, in order to disguise extra profit for themselves, misrepresented to local authorities, for whom they were acting, the leasing rates offered by financing companies on financing tenders.'

Wendy Lambert, financial service manager at the Hampshire Fire & Rescue Service, which rented emergency vehicles through the broker, said: 'We were very disappointed in Phoenix. They told us, 'We'll get you the best price'.''

The penalty for fraud-related offences such as false accounting and theft can be seven to 10 years in jail. Robinson and Stovold declined to comment.