A MAN who swindled local businesses out of advertising money has been ordered to pay almost £3,000 in compensation and costs.

Stephen Lloyd, of Stanhope Road, Billingham, sold advertising in The Phone Box Directory to a number of local businesses, but did not go on to publish it.

The 51-year-old admitted five charges of engaging in misleading advertising, at Teesside Magistrates Court this morning (Tuesday, March 31).

Stockton Council’s Trading Standards officers investigated Mr Lloyd after receiving complaints from businesses in the Billingham and Wolviston area.

In October 2013 Mr Lloyd began to approach businesses to advertise in the Phone Box Directory, showing them an existing copy which had been produced in the shape and design of a telephone box. Businesses were told the directory would be distributed in January 2014 to up to 150,000 homes throughout the Tees Valley.

However, more than a year later the directory had not been published with businesses paying between £50 and £250 for advertising they did not receive.

In mitigation Mr Lloyd said that he wished to apologise to the complainants and that he had run the directory as a successful business a number of years ago.

He was given a two year conditional discharge for each offence, to run concurrently, and ordered to pay the complainants £1,480 in compensation and the Council £1,427 in costs.

Peter Kelly, Stockton Council’s Director of Public Health, said: “Trading Standards will investigate and take action against traders who make contracts which are based on false claims whether these are with consumers or other businesses."