Agenda item

The Committee will receive a presentation on the outcomes of “Operation Augusta”. (slides attached)

The Committee received a presentation on Operation Augusta, the fake golf club conspiracy.  The Committee were informed that there had been a 10?strong gang, who had been operating within the Rainham and Romford areas.  The main focus was primarily on the sale and distribution of counterfeit golf clubs, clothing and accessories but also Quantas Complimentary Lounge Invitation Cards.

The case concerned was on a global scale with contacts based in the UK, Thailand, Australia, Germany, Singapore, the USA, Hong Kong and China.  Officers stated that it was thought that the fake goods had been distributed globally via Ebay to countries including Australia, Italy, France, Canada, the Netherlands, Brazil and New Zealand. Whilst the value of the conspiracy was difficult to determine, due to its sheer size, the PayPal account of the Ebay account alone received over $3 million during the five years (2003-2008)

Seven of the original defendants stood trial in 2009 and were convicted.  The other three defendants had been resident in Thailand for a period of years prior to the start of the case.  After the conviction of the seven, Havering Council started proceedings to extradite the remaining members of the gang.  One of the gang voluntarily surrendered himself to the Court, and the other two were extradited from Thailand.  In July 2013, at Basildon Crown Court, the final three were found guilty for their part in the conspiracy and were sentenced.

The Committee felt that the sentences given were insufficient for the crime committed.  Officers stated that if the final three had not been extradited, they would have kept the money they had made from the conspiracy, as they all had residency in Thailand.

The officer explained that the Courts have to agree to the extradition, and the charges are then paid by the government.  It was explained that Mr Bellchambers, the gang leader had served two years over his two year sentence, his assets abroad could be frozen.  However this would be carried out by the Thai authorities, who the British Government have a reciprocal arrangement with, but they would then keep the assets.

The Committee noted that the case was now coming to an end; however the Council continued to receive money associated with the case.  The Officer explained that the costs to the gang for manufacturing and delivering was between $5 - $10, however the charge to customers was around £100, which was over 1000% profit.

Members asked what would happen to the counterfeit golf clubs.  Officers explained that there were a couple of tonnes of golf clubs which would have to be destroyed, possibly with the hope of recovering some scrap metal costs.

The Committee suggested that officers should approach the large brand companies stated that they had pursued the counterfeiters and see if they could contribute to the fees paid by the local authority.  Officers stated that the companies involved had given witness support in the case.  The case had raised the profile of Havering and that Trading Standards had won prizes for the case.

The Committee asked that its thanks be passed on to all officers involved for their persistence in this case.