GOVERNMENT officers are investigating a North-East estate agent following complaints over the supply of Home Information Packs (Hips).

The Insolvency Service is investigating Stuart Edwards branches in Darlington, Bishop Auckland, Crook and Newton Aycliffe, County Durham.

A spokesman for the service said he could not comment on individual cases, but said the organisation had a duty to investigate any allegations.

Stuart Edwards Newton Aycliffe was given a winding up order on May 20, last year, which was lodged at Durham County Court by the Inland Revenue.

The company folded, £43,000 in debt, but the branch, in Dalton Way, Newton Aycliffe, remained open as Green Knight trading as Stuart Edwards.

Four months later, Green Knight was given a winding up order, but the branch remained open again, “with the help of an associate”.

When the branch eventually closed, a string of complaints were levelled at Lee Smurthwaite, who said he was a director at Stuart Edwards.

Merlyn Hannant, 77, said she paid Stuart Edwards Newton Aycliffe £350 for a Hip two weeks after the winding up order was issued. She said: “They managed to cash the cheque quick enough. Four days later they took the money, but nothing since.

“I’ve since heard of all these different names and companies, but as far as I was concerned I was dealing with Stuart Edwards.”

The Insolvency Service is investigating Mrs Hannant’s case. Several other customers in a similar position have contacted The Northern Echo.

An investigation by County Durham Trading Standards officers is ongoing and Darlington Trading Standards has confirmed it has received some complaints.

Police officers have concluded a number of interviews with Stuart Edwards customers, but are not pursuing the matter.

The Northern Echo understands that Newton Aycliffe town centre landlord, Freshwater, has started legal proceedings against Stuart Edwards regarding a year’s unpaid rent. Mr Smurthwaite has denied any wrongdoing and insists all clients will either receive a Hip or a refund.

He said: “Stuart Edwards is a trading name and it is common practice for estate agents and many other businesses to trade under a separate name.”

Stuart Edwards Estate Agents Darlington, again run by Mr Smurthwaite, received a winding up order on October 17, 2007, with debts of £12,000, but the Duke Street office remained open several months later.

Stuart Edwards Durham City, which is still trading, is not thought to be connected with any of the investigations.