£1m rip-off over fake designer clothes racket

A husband and wife ran a £1million fake designer clothes racket from their home, while also buying cheap outfits from a Staffordshire charity and selling them for a huge profit, a court heard.

Hayley and Keith Horton funded a luxury lifestyle with money they made from Wags Classy Rags, which peddled thousands of fake Karen Millen dresses and other bogus designer items.

The majority of dresses were imported from China and sold on auction site ebay from the couple's Oldbury home. Some, which were seized by police and Trading Standards, were bought from Cannock-based charity Newlife and had new labels sewn inside.

It is estimated they raked in sales via ebay alone of £224,761.42 for Karen Millen fakes, £14,271.29 on fake Ugg goods, £13,570 on bogus Coast clothes and £8,263.17 from illicit French Connection items from 2008 up until 2010. Experts estimated the couple, who have admitted selling counterfeit goods, money laundering and fraud, could have made up to £172,643 over 18 months.

Mr Mark Jackson, prosecuting, told Wolverhampton Crown Court: "This was not a market stall peddling some fakes. This was a major counterfeiting operation."

Newlife CEO Sheila Brown OBE said: "We think most people will find it unacceptable that this couple tried to profit off the back of a disabled children's charity." Mr Iain Suggett, representing Keith Horton, 46, said he had £30,000 debts and was now "looking bankruptcy in the face".

Mr Ben Walker-Nolan, for Hayley Horton, 40, said the marriage had broken down as a result of the case. The couple, of Harborne Road, were being sentenced today.