A CHINESE criminal living in Stanmore has been jailed for running an online multi-million pound fake DVD racket.

Kin Man Chan, 45, of The Highway, worked with compatriot Wai Kong Man, 44, of Corbett House, Barnsbury Estate, King’s Cross, north London, and co-conspirators in their homeland to produce counterfeit copies to sell via the internet.

The pair pleaded guilty at Luton Crown Court to conspiracy to sell goods which bore signs identical to or likely to be mistaken for trade marks following a probe by Central Bedfordshire Council’s Trading Standards officers.

The council said in a statement: “The investigation, undertaken in conjunction with the Federation Against Copyright Theft (FACT), revealed that an internet sales website offering film, gaming and music products was back up and running after a previous investigation in 2009 had led to significant custodial sentences for two other people.

“The new investigation found that payments amounting to hundreds of thousands of pounds were being made via PayPal and that these monies were being re-directed to bank accounts in China. The website gave the impression that the products were being sent from China direct but the investigation, involving test purchases by Central Bedfordshire Council Trading Standards officers, revealed that the goods were being posted within the UK.

“Mr Man was identified as the person posting the purchased DVDs and running what was suspected to be a DVD counterfeiting factory. Financial evidence linked Mr Chan to buying equipment used in counterfeiting DVDs as far back as 2005.

“Financial evidence also linked him with buying computer equipment that was supplied to Mr Man and pointed to Mr Chan being one of the main organisers running the counterfeit business.”

The judge was told the criminal gang made £1.75milion with the industry’s estimated loss in genuine sales topping £10million.

Kieron Sharp, the director general of FACT, said: “Working in partnership with Central Bedfordshire Trading Standards a complex criminal organisation with global links has been shut down.

“The work done by the Financial Investigations Unit alongside FACT’s investigators was crucial in identifying the flow of money and the operation of the business.

“Criminal activity on this scale threatens the livelihoods of the two million people working in the UK’s creative industries and harms legitimate businesses.”

Chan received 30 months’ jail and Man eight months’ imprisonment and a Proceeds of Crime Act confiscation proceedings in respect of the former will be subject of a hearing in October.