Trading Standards and RART ‘Bag’ another Result
On 29th August 2006, the London Boroughs of Brent & Harrow Trading Standards Service, assisted by the London Regional Assets Recovery Team (RART) financial investigators, secured a £400,000 Confiscation Order at Harrow Crown Court against Alami International Limited, an importer and wholesaler of handbags and luggage based in Dace Road, London E3 2NG.
Alami International Ltd were also fined £24,000 and ordered to pay £23,500 costs by His Honour Judge Madge after being found guilty of eight offences under the Trade Marks Act 1994 at Harrow Magistrates Court in July 2005. His Honour Judge Madge also ordered that the Confiscation Order must be paid within six months. This case is believed to be the first ‘Confiscation Order’ in the country against a Limited Company.
The investigation began in October 2003 following a tip-off received by Trading Standards that counterfeit ladies handbags were being sold from a shop called Amici in Pinner High Street. A Trading Standards Officer carried out a test purchase of a handbag from the store that bore trade marks that were likely to be mistaken for the Louis Vuitton registered trade mark.
The bag was examined by an expert who identified it as being counterfeit and subsequent enquiries were made that identified the wholesalers as Alami International Limited.
Brent and Harrow Trading Standards Enforcement Officers, accompanied by police and financial investigators from London RART and trade mark experts, raided Alami’s warehouse in Tower Hamlets in February 2004 and over 1,700 items were identified as being counterfeit including handbags, luggage, purses, phone holders, shoes and belts which breached famous trade marks such as Louis Vuitton, Celine and Versace.
During the trial at Harrow Magistrates Court in July 2005, Alami International Limited tried to argue that all the seized goods had been designed by them and they had them manufactured and branded with their own trade mark. The defendant company tried to convince the Magistrates that the designs, which had been slightly changed from the registered trade marks, were significantly different and, as such, they would not cause confusion or mislead consumers.
Evidence was presented in the Court comparing the original items to the counterfeit items and in most cases there was little or no difference between them. The colours and patterns used were all copied from classic Louis Vuitton or Celine designs and Versace’s Medusa’s head had been used on the belts.
The Magistrates committed the case to Harrow Crown Court for sentencing and to allow for an application to be made by the Prosecution under the Proceeds of Crime Act 2002 for Confiscation Proceedings. This process allows prosecuting authorities such as the Trading Standards Service to carry out a financial investigation of the defendant’s assets and, where it can be proved that there has been gain from criminal conduct, the Court can confiscate any assets.
Brent and Harrow Trading Standards Service, RART and two computer forensics experts raided Alami International Ltd premises again in September 2005 to search for business records, invoices and accounts whilst also taking images of computer hard drives in order to collect evidence to demonstrate the extent of Alami International’s trading in counterfeit bags and accessories.
The seized evidence allowed RART to conduct a detailed investigation of the company’s financial benefit that had resulted from selling counterfeit handbags bags and a small quantity of belts.
Speaking after the case, John Taylor, Director of Trading Standards for the London Boroughs of Brent and Harrow stated, “This is another excellent result for the Service and our first involving our new powers under the Proceeds of Crime Act 2002. It demonstrates what can be achieved working in partnership with the RART and that we will pursue the assets of those who try and make money from illegal trading.”
Mark Hewitt Deputy Head of London RART stated, “This is yet another fantastic example of when RART will explore all avenues and work in partnership with other agencies in an effort to maximise criminal asset recovery through the provisions of the Proceeds of Crime Act (2002). The London Regional Asset Recovery Team is a multi-agency team dedicated to taking the cash out of crime, this case demonstrates how money, the life blood of crime can be successfully removed from the criminal cycle when various agencies work towards a common goal”.