Caught on camera: NI guru who told clients to inflate income for credit

https://www.belfasttelegraph.co.uk/business/technology/caught-on-camera-ni-guru-who-told-clients-to-inflate-income-for-credit/a641284047.html

Concerns have been raised over a popular local entrepreneurship programme helping people launch their own business.

A number of sources with experience of FBA Brand Builder run by Darren Campbell (34) have expressed unease the company encourages clients to provide false information to obtain credit.

Mr Campbell’s lawyers said he “categorically denies” any allegations of wrongdoing.

FBA Brand Builder charges people for guidance in launching their own online selling business through Amazon.

Prices for the course begin at £6,500, with the Ballymena man bringing clients through a mentoring programme to help them launch their brands.

The programme allows sellers to outsource orders to Amazon, which takes care of storing, packing, shipping, customer support and returns.

They pay Amazon advertising costs to promote their products, including a service to help their goods appear higher in its search function.

FBA Brand Builder clients have access to a group call on which Mr Campbell advises on how to navigate the system.

Footage from one of those calls viewed by the Belfast Telegraph revealed him encouraging a participant to lie about their income when applying for credit to help launch their business.

He tells them: “First and foremost, for your job or whatever you make, you make at least £35,000 a year.

“I wouldn’t even put £35,000. I’ve spoken to [named], if you put £35,000 or below, it’ll flag up that you’ve been rejected.

“Even if you’re not, put £36k, £37k, £38k on it, and then what I want you to put on the turnover, put in £150k, or £200k.

“By the way, this is very, very important, very important; whoever’s credit is best out of yours or [named], put it on that.

“You should get it; I’d be very, very shocked if you didn’t.”

Screenshots from the company’s internal messaging service also show staff repeating some of Mr Campbell’s guidance.

In response to a client asking for advice on making the application, one member of staff said he “sort of bluffed this off” when filling out his own application.

Further screenshots show clients being advised to enter a revenue of between £100,000 and £120,000, even though their brands had not yet been launched.

FBA Brand Builder is the trade name of Commerce DC Enterprises Ltd, a business founded by Mr Campbell, who is listed as a director in Companies House.

Mr Campbell received funding from Mid and East Antrim Borough Council in 2021 to launch the company, before going on to create his own outdoor brand, Outlantis.

At the time the footage was recorded, Commerce DC was registered with UK regulator the Financial Conduct Authority (FCA).

FCA said Commerce DC was an introducer appointed representative (IAR) for a company called Switcha Ltd between October 2022 and August 2023.

IARs carry out regulated activity under the responsibility of an authorised firm (principal), which is responsible for making sure the company complies with FCA rules.

FCA said it had passed information on the company to those responsible for regulating the principal firm.

“This meant that Switcha Limited was responsible for Commerce DC Enterprises’ compliance with our rules,” it added.

“Customers who have concerns or complaints about the service provided by Commerce DC Enterprise in this period should refer them to Switcha Limited.

“We have passed this onto the area that supervises Switcha Limited to decide whether it is appropriate to take any action. Business coaching is not regulated by the FCA.

“You should be wary of anyone encouraging you to lie on a credit application.

“Doing so puts you at risk of taking on too much debt and of breaking the law.”

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Darren Campbell, who runs FBA Brand Builder, and messages taken from the firm’s internal communication system, Mighty Networks.

Switcha Ltd said it removed Commerce DC from the register on August 23 last year as it had not done any business with the company.

“We work closely with the FCA to make sure that our IARs are compliant and we provide a very, very limited service which makes it difficult for anyone to breach FCA rules,” it said.

Within the footage, Mr Campbell claims to have a “partnership” with credit card provider American Express.

American Express told this newspaper it does “not have a business relationship” with FBA Brand Builder, and did not have one at the time of the video.

A further video appears to show a sales representative from FBA Brand Builder liaising with potential clients and recommending asking for a personal loan rather than a business loan to gather credit for the initial stage of the process.

They said: “Just say it’s for a personal loan. For some reason — I don’t get it — but for business loans they ask more questions: about limited company, bank account, all the stuff you don’t set up until you are in the programme.”

When joining Mr Campbell’s course, clients sign a lengthy contract with his company.

That contract, seen by the Belfast Telegraph, includes a clause preventing them from using any similar services simultaneously, with another forbidding customers from activity that would “disparage, denigrate, slander, libel or otherwise defame” the business.

Further clauses demand interest on overdue payments to Mr Campbell’s business, and allow the company to terminate the contract with immediate effect provided written notice has been given.

The Belfast Telegraph spoke to multiple sources with experience of FBA Brand Builder.

They said messages on its internal forum, where people had spoken negatively about the programme, were deleted.

On one occasion a message sent by a member of staff to a client who raised concerns said: “We don’t tolerate any negative comments. This is in everyone’s contracts they sign at the start of their journey.”

A further source added they had raised concerns with the PSNI and local politicians about the scheme.

A solicitor for Mr Campbell said he “categorically denies” directing clients to use higher income figures.

The company said it attended a number of follow-up calls directly with the client in respect of the application to discuss “estimated income” and “expected” revenue of the business, which is what the American Express application requires, and that “each member is responsible for making its own application for finance”.

It added it had “zero tolerance for bullying, negativity or defamatory behaviour”.

And it said the footage reflected only a brief section of a “seminar” in which Mr Campbell responded to questions in relation to obtaining credit using his past experience.

FBA Brand Builder stated it did not require FCA registration, eventually voluntarily removed itself from its registration, and complied with FCA rules at all times.

The PSNI told the Belfast Telegraph: “Encouraging others to commit any offence is illegal.

“However, following review by the economic crime unit it was established that this video clip contained insufficient evidence to prove the offence of incitement to commit fraud.

“We would encourage anyone with further information on this matter, or any other suspected fraudulent activity, to contact us on 101, or online at psni.police.uk/report.”