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ARA Recovers assets of EBAY fraudsters

ASSETS RECOVERY AGENCY News Release issued by The Government News Network on 28 November 2007

The Assets Recovery Agency (ARA) has obtained a Civil Recovery Order for £60,000 against two students who sold counterfeit designer Tiffany jewellery and high-value designer handbags on Internet auction site, EBay.

In its case against Miao Cui and Xi Lin, both Chinese nationals, the Agency alleged in the High Court that the money, which was spread across several bank accounts held in the names of both respondents separately, was derived from unlawful conduct, namely, the sale of counterfeit goods and laundering of the proceeds.

Both defendants, formerly of Trinity Mews, Teesdale, Thornaby, Stockton-on-Tees, were arrested by police in February 2006 for offences against the Trademarks Act and Proceeds of Crime Act, relating to counterfeiting and money laundering. It followed a police search of the above premises resulting in the seizure of Royal Mail posting books, Hermes and Tiffany trademark packaging boxes, counterfeit Chanel, Louis Vuitton and Mulberry handbags, Fendi and Chloe handbags, Hermes ties and Tiffany jewellery.

They were bailed to return to Stockton Police Station on 30 May 2006. However, they failed to answer bail and were believed to have returned to China.

Cleveland Police as a consequence then referred the case to the Agency to be progressed using ARA's unique civil recovery powers. A detailed investigation by ARA financial investigators revealed that between October 2004 and January 2006, some £90,000 was received into the numerous accounts directly from online payment companies, Nochex and Paypal. A further £75,000 was also received into those same accounts in the form of cash payments over the same period of time.

Both Mr Cui and Miss Lin had entered the UK on student visas, which restricted them from working or claiming benefits in the UK.

The agency was granted a Property Freezing Order on 14 February by the High Court to prevent assets being dissipated during the ongoing investigation which has now led to a successful recovery action.

Charlie Dickin, ARA Deputy Director of Operations said: "We successfully pursued this investigation after the police were unable to proceed with prosecution due to the fact the defendants had fled the jurisdiction.

"They had amassed significant sums of money in several accounts over a short period of time by duping innocent buyers over the Internet. We are committed to using the full rigour of our unique powers to tackling cases involving counterfeiting and piracy - whether that involves disrupting those involved in large criminal enterprises or individuals who persist in duping hundreds of unwitting buyers at market stalls or over the Internet."

Notes to Editors:

1. The Proceeds of Crime Act 2002 created the Assets Recovery Agency and provided completely new powers to allow ARA to seek civil recovery of the proceeds of unlawful activity by an action in the High Court. The Agency can also issue tax assessments where there are reasonable grounds to suspect that there is taxable income, gain or profit from criminal conduct.

2. The Agency is playing its part in the multi-agency approach to deliver the Government's Asset Recovery Strategy. Under the cross government initiative 'Payback', the tracing of and recovery of assets is seen as an important element in the delivery of justice, and sends out a strong deterrent message. The overall aims of the strategy are to make greater use of the investigations of criminal assets in the fight against crime; recover money that has been made from crime or which is intended for use in crime; prevent criminals and their associates from laundering the proceeds of criminal conduct, and detect and penalise such laundering where it occurs; to use the proceeds recovered for the benefit of the community.

3. On 31 October 2007, the Serious Crime Bill received Royal Assent. The new Act will merge the operational elements of the Assets Recovery Agency (ARA) with the Serious Organised Crime Agency (SOCA), and the training and accreditation functions with the National Policing Improvement Agency (NPIA). It will also extend to certain prosecutors the power to launch civil recovery action under the Proceeds of Crime Act 2002. Until then ARA will continue to operate as before and use its powers to the full in proceeding to complete existing cases and adopt new cases for future action.

Assets Recovery Agency, PO Box 39992
London EC4M 7XQ
E enquiries@ara.gsi.gov.uk
http://www.assetsrecovery.gov.uk