Comsure’s moan –

This story shows why the money laundering laws are not used to their fullest effect. 

1 Although the proceeds of crime order against the duo as part of the civil process to recover the illegal benefit of their crime was used

a. WHY were they not indicted under the proceeds of crime law?

2. Also what about

a. the facilitators (e.g. lawyers, accountants, the banks, the virtual market places) of their crimes

and

b. end-users (e.g. the bank and the bank accounts) of their crimes?

Some key facts

1. The illegal business was the importation of fake goods from China (In the large part they were car badges from well-known manufacturers and also counterfeit toys) for resale
2. At the time or arrest there were 90,997 fake goods ready to be sold
3. the business had generated £1.75 million in illegal turnover.
4. The used fake IDS to set up and turn their businesses

The story reported

Counterfeit goods postmaster ordered to pay back £750,000 or face five more years in prison

A man found guilty of running a fake goods business online has been ordered to hand back three quarters of a million pounds of illicit earnings – or face a further five years in prison.

In August last year, Gregory William Whitehead, 50, most recently of Tregrehan Hill, St Austell , was jailed for 32 months and William Thomas Lemoyne, 37, formerly of Trevenson Street, Camborne , but now living in France, was handed a two year suspended sentence.

Both men had pleaded guilty to conspiring to supply counterfeit goods, including fake car accessories, toys and musical instrument accessories.

At a hearing at Truro Crown Court on Monday, Cornwall Council ’s Trading Standards Officers successfully secured

a proceeds of crime order against the duo as part of the civil process to recover the illegal benefit of their crime.

The court accepted that in total, the business had generated £1.75 million in illegal turnover.

For his part in the operation, former postmaster Whitehead was ordered to pay back £750,000 or face a further five years imprisonment.  Lemoyne was ordered to pay back £1,300.

Gary Webster, Senior Trading Standards Officer said:

“Today’s result sends a clear message to those who seek to profit by selling counterfeit goods.

“Where appropriate, we will always seek to recover any benefits made from illegal trading and take the profit out of crime.”

The proceeds of crime legislation is designed to help law enforcement agencies to identify money or assets gained by criminals during the course of their criminal activity. Agencies have powers to seek to confiscate these assets following conviction for relevant offences.

Rob Nolan, Cornwall’s Portfolio holder for the Environment and Public Protection, said: 

“It may be a cliché, but this just shows that crime does not pay.

“I would like to pay tribute to the excellent work of our trading standards team, whose diligence throughout this long-running investigation has led to this result.”

Some of the fake car badges and other goods imported by Gregory Whitehead and William Lemoyne

How Cornwall Live reported the court case

A former Cornwall post master and his cousin masterminded a global criminal enterprise which saw just over £2million worth of fake car accessories, toys and musical instruments shipped to the UK from China and then sold on eBay and Amazon.

Gregory William Whitehead, 48, and William Thomas Lemoyne, 36, appeared for sentence at Truro Crown Court after previously admitting their roles in what Cornwall Council Trading Standards has described as its biggest ever operation.

Both men admitted conspiracy to supply counterfeit goods at an earlier hearing.

Prosecuting barrister Alexander Greenwood described to the court how Whitehead, most recently of Tregrehan Hill in St Austell had previously worked as the sub post master in St Columb. Along with his co-accused Lemoyne, previously of Trevenson Street in Camborne , both men traded from a converted barn warehouse at Carbean Mill in Carthew near St Austell.

When Trading Standards raided what was described in court as an “Aladdin’s cave” in February 2016 they found nearly 100,000 fake items boxed and divided by brand. The premises is said to have had three entrances and consisted of several floors, what Mr Greenwood described as

“clear evidence of a highly organised and systematic business”.

Mr Greenwood said:

“Boxes found were labelled for postage to France, Spain and ROW (rest of the world).

“There were 90,997 fake goods in the premises including goods that appeared to be Volkswagen, Mercedes Benz, Porsche, Ford, Honda, Jaguar and Jaguar.

“Investigations showed substantial sums paid from Lemoyne to the account of Whitehead and vice versa indicative of the relationship between the two.”

The court heard how the three and a half year enterprise came about after Whitehead agreed provide a UK selling point for the brother of his ex-wife in China. His former spouse Ying Yu was originally also subject to criminal proceedings but the charges were dropped.

FAKE IDs

Both Whitehead and Lemoyne used the identifications of innocent third parties to disguise their acts and also both set up a series of businesses under which the criminal operation performed.

Their criminality was discovered when officers examined a number of financial accounts and business names and were able to piece together the puzzle.

Mr Greenwood said:

“Gregory Whitehead was at the heart of what the prosecution says was a sophisticated conspiracy to import counterfeit goods for sale both in the UK and abroad.

“The offences date a number of years and both defendants were familiar with laws around the trademarking goods with Mr Whitehead even having to previously pay BMW for selling fake goods.”

The total value of the operation attributable to

Whitehead was £1,259,547 and

Lemoyne £347,118.

Sentencing Whitehead and Lemoyne, Judge Robert Linford said:

1. “Over a period of three and a half years you were responsible for the onwards distribution of a vast number of goods that were fake.
2. “You two agreed to and carried out the importation of goods from China.
3. In the large part they were car badges from well-known manufacturers and also counterfeit toys.
4. “You used the IDs of third parties and each knew what you were doing was severely wrong.
5. You, Mr Whitehead, were previously warned by BMW and Mr Lemoyne you were not ignorant of the rules and regulations either.
6. “The total value of the enterprise exceeds £2million.
7. Mr Whitehead the value of your side exceeds £1.25 million and Mr Lemoyne your side’s value was just under £350,000 although the profits were not as substantial.
8. “You both profited at the expense of the legitimate trademark holder and the over 90,000 counterfeit goods found in your possession were in the process of being sold.
9. “This was a sophisticated, commercial, for profit operation committed by you two who knew what you were doing.”

Judge Linford went onto note the considerable mitigation of both men but said he must impose deterrent sentences.

1. “With a heavy heart” Judge Linford sentenced Whitehead to 32 months in prison but said Lemoyne’s position was “very different” and therefore he was given a two year sentence suspended for two years.

 

Read here

https://www.cornwalllive.com/news/cornwall-news/counterfeit-goods-postmaster-ordered-pay-3233497