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Three jailed up to 15 months in UK counterfeiting conspiracy

Ringleaders of music, film and games counterfeiting scam were jailed after amassing tens of thousands of pounds through sale of fake CDs, DVDs, games and extensive benefit fraud. This was the first sentencing from Operation Zealot which resulted in 29 arrests in 2006.

The UK's music, film, and games industries welcomed the sentences handed down to the ringleaders of a UK (North West) counterfeiting operation. All eight defendants pleaded guilty at the first opportunity. Ringleaders Barry Powell and Mark Quincey were imprisoned for 12 and 15 months respectively for their role in the 6-month scam that also involved an extensive benefit fraud. Fellow ringleader Sarah Haynes, a mother of two, was handed down a 9-month prison sentence.

UK record industry body the BPI brought a private prosecution, together with the Department for Work and Pensions (DWP), after a joint investigation with film industry enforcement body FACT and games industry enforcement body ELSPA.

The court heard that the criminal operation operated as a wel lorganised illegal business and was run from the homes of the ringleaders. Supplying local markets and car boot fairs, it generated in excess of £40,000 in criminal proceeds during its 6month operation.

The defendants had also claimed between £20,000 illegally in state benefits. The convicted may now lose all their assets under the Proceeds of Crime Act. These defendants were arrested along with 21 others as part of a massive police operation codenamed "Zealot" in March 2006. These prosecutions are pending.

Involving 135 officers, and coordinated with the BPI, FACT, ELSPA and the DWP, Zealot was believed to be one of the biggest multi-agency anti-counterfeiting police operations in British history. The Zealot raids ended a conspiracy that had involved the supply of counterfeit CDs and DVDs to markets beyond Liverpool and across the North West of England.

BPI investigators estimated that 70% of the fakes were sold at Liverpool's two worst piracy hotspots, Stanley Dock and Walton Market, with another 30% sold on to smaller units in the Liverpool area. The DWP had estimated that some of the counterfeit stalls in Liverpool had been turning over £4,000 a day.

Story filed 27.05.07

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