Episode 7 Fake Britain


Episode 7

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Transcript


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Welcome to a world where nothing is quite as it seems.

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Welcome to Fake Britain.

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-Get down!

-Get on the floor now!

-Put your hands behind your back now!

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In this series I'll be investigating the world of the criminals

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who make their money at your expense.

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And I'll show you how not to get ripped off.

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On today's Fake Britain:

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Public markets across the country

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that are being flooded by the fakers.

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It's a million pounds plus, easily, of counterfeit items.

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And the honest traders under threat from the fakers.

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The legitimate traders were unable to actually purchase stalls

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as they were being taken over

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by counterfeit and illegal criminal gangs.

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One of the largest fake cigarette factories in the UK - busted.

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We're talking 625 million cigarettes a year.

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But what's inside the fake cigarettes?

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The result of smoking these over a period of time

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would be classic signs of heavy metal poisoning.

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That would be the Mad Hatter syndrome,

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where people exhibit signs of dementia.

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And we get ahead of the game by tracking down a pint of beer

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that isn't quite what it seems.

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It's 40ml short. That to me would be a fake pint.

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Got them all here today, come on.

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Any four for a pound here.

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For centuries, Britain's public markets

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have been a thriving feature of our economic landscape.

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But now they're under threat from the fakers.

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Wembley market is no exception.

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With over 200 stalls,

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it's billed as the biggest and best market in England.

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But it's thought that a number of the stalls here

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could be selling fake merchandise.

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Simon Legg, from Brent and Harrow Trading Standards,

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is having none of it.

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Are all teams briefed knowing which stall they're going to, over?

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This is one of our removal vans.

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In a joint operation, Brent and Harrow Trading Standards and the local police

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are heading to Wembley to fight back

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against the fakers taking over the market.

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It's like a game of cat and mouse, dealing with things at the market.

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We're on one side of the market,

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they'll be trading illegally on the other side.

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Outside, Simon's team of officers are assembled and ready for action.

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OK, guys, let's go!

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Let's move, come on, everybody.

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The officers need to move fast

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to stay one step ahead of the counterfeiters.

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We're trying to get to our target stalls

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before people get tipped off we're here

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and then they start covering up or hiding their stuff,

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alternatively doing a runner from the stalls.

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The officers pounce so quickly

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that the traders on their first target stall

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are only just setting up for the day.

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It's all still in its original boxes,

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which makes lifting it, bagging and tagging it, moving it away

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much easier for us.

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And what's inside those boxes is definitely of interest.

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That's not a legitimate Ugg boot.

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You can just feel the quality of the materials.

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It's clear to me this isn't a genuine product.

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And there are other big brands on offer - fake big brands, that is.

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Again, we've got Nike trainers,

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you can tell it's not a genuine Nike product,

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just from looking at the quality of it.

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Yeah, and the feel of it, and the printing quality inside.

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Likewise, over here we've got some Adidas trainers.

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Just the feel of the labels,

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it's very cheap, poor quality cardboard.

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It's got all the telltale signs that they're counterfeit shoes.

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For these stall holders,

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losing their merchandise to Trading Standards

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is merely an operational cost, a mere blip in their huge profits.

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To have a stall this size, it's a double pitch stall,

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they'll be earning thousands of pounds, depending on how busy it is.

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If you're earning £1,000 a day in your average week,

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that's £7,000 upwards.

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Hundreds of thousands of pounds from counterfeit sales every year

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just from this one stall.

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All of a sudden, Simon gets wind of some traders who have done a runner.

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They're prepared to run off and abandon all their stock.

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This is one such stall here.

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They've just done a runner and abandoned it.

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It's all set up ready to trade, they've put all this stock out,

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Adidas, all the major brands are out here, sportswear stuff.

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We've got dozens of boxes underneath full of Adidas tracksuits.

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This is quite a poor quality item.

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It's described as an Adidas Original, couldn't be further from the truth.

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The dodgy traders have escaped this time round,

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but their stock might not be so lucky.

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When the market gets busier later on,

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I am sure people walking by will no doubt help themselves, unfortunately.

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It's not just fake clothes on offer at Wembley.

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Real diamond Shamballa bracelets can cost thousands of pounds.

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But as Jon's discovering,

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fake diamonds are a counterfeiter's best friend.

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Rubbish.

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You can just see the finishing.

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They're not going to be diamonds at all or any form of crystals,

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These probably pop out quite easily,

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they probably turn these out in China for 25p, 50p each.

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And everyone involved in the sale of this fake jewellery

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is making a killing.

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Say they retail at £25 a bracelet,

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they could probably sell several hundred, 200-300 here easily a day,

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and they can make £2,000 just from selling a small portion of it.

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And then they're back next week for the same again.

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This stall has just been busted.

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But the man trading at the stall right next door

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doesn't seem to care.

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They carried on trading while we were dealing with this stall, stupidly,

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so they've been our next target.

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What's your business name, please?

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That's how blatant people are, they don't have any fear

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and are prepared to risk being caught for the benefit of a day's trade.

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It's another good haul.

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The finishing on that is dreadful.

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I don't have to work for Adidas to know that that's counterfeit.

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Rather than doing a runner, this trader thinks Trading Standards

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might be up for a bit of haggling.

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Are you going to take everything as well?

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I'll take everything - I can't let you sell this, can I?

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How come you're sure it's counterfeit? I'm not sure!

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I can tell you this is counterfeit straight away,

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just the finishing on that.

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The stall holder is baffled as to why Trading Standards

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would stop him from selling his goods.

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He thinks he's doing a public service,

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but his argument's falling on deaf ears.

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It's up to the trader to make sure he's not selling counterfeit goods.

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So if he's kept his receipts then he's got some comeback,

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if he's paid cash for the stuff then he's struggling.

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Come on be fair, be fair.

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Fake clothing might seem like a cheap bargain.

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But it can also be dangerous.

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Cheap hood chords on fake tops like this don't meet EU legislation.

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They're unsafe, and could lead to disaster.

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Child's got that done up around its neck,

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I don't know, it's in the playground, it's coming down the stairs.

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You know, it's an extreme example but it could happen.

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And that's why the safety legislation is there.

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Fake brands and clear safety issues. Trading Standards have seen enough.

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-Effectively...

-Your powers are limitless and my rights are no rights.

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No, that's not true. You do have rights.

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What's going to happen is we're going to seize all this obviously.

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Overall, it's a massive haul of fake gear from several market stalls.

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Enough to fill up not one, not two, but five transit vans.

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The counterfeit haul is taken to a secret storage depot

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somewhere in London.

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It will be kept safely locked up pending the criminal investigation.

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And yet again,

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it's all hands on deck due to the sheer volume of the seized load.

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Trolley after trolley, it keeps coming.

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I reckon between the vehicles today

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we had at least five tonnes worth of evidence.

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It's a million pounds plus, easily, of counterfeit items.

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The profits of these guys are enormous.

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The likes of myself grafting away for a fair salary

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where they're raking it in. Thousands of pounds worth a day,

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the market traders can easily make in profit from these counterfeit items.

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It's all in a day's work for Brent and Harrow Trading Standards.

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This is satisfying, having these seized goods

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brought back with us today.

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It's counterfeit goods taken off the marketplace.

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People aren't going to be profiteering from it,

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consumers aren't going to be harmed or misled by it.

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So a good haul for us, really pleased.

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Coming up, we're out with Greater Manchester Police

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as they crack down on the criminal counterfeiters.

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We're heading to one of six addresses

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where we suspect there will be significant amounts of counterfeit products.

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We're known as a nation of animal lovers.

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26 million of us own pets,

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and we spend around £14 billion a year caring for them.

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But the fakers are learning that when it comes to pet insurance,

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big value pets can mean big payouts.

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And fake claims on pet insurance policies

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are now the fastest growing area of insurance fraud.

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Claire Laver is a specialist insurance lawyer

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who's been investigating the ever-growing number

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of pet-related claims.

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Pet fraud has started to increase.

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The statistics suggest that in 2009,

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around about £420,000 of detected claims fraud was identified.

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And that increased to 1.9 million in 2010.

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So that represents a 450% increase overall.

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Claire knows of one case where a dog breeder went to gruesome lengths

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to cash in on her pet insurance policies

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by repeatedly faking the dates of the deaths of her puppies.

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The case of Jill Allen is particularly macabre

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because she was a dog breeder

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who would posthumously insure her puppies

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and then present claims for the loss of those puppies.

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Rather than insuring her pedigree puppies against death while they were still alive,

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the dog breeder insured them after they had died.

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Having already died, she would place the puppies in cling film,

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mark them with a date and place them in her freezer.

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She would then put in her fake claim saying the puppy had just died,

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when in fact it had been lying preserved in her freezer.

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She would then defrost them as and when was necessary

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to substantiate the claims presented against the insurance company.

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When the woman's home was finally searched,

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nine frozen puppies were found,

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each of which was ready to be thawed out

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to prove it had died when she said it had.

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But Claire believes that some of the fakers trying to cash in on pet insurance policies

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never even owned animals in the first place.

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The types of fraud that are committed

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generally involve fictitious animals and not real animals.

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And in order to make the claim successful,

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people will forge documents to support their claims.

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They will redirect calls through to themselves,

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they will insure fictitious animals.

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DCI Dave Wood knows all about the lengths

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to which some of the pet insurance fakers will go.

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He heads up the Insurance Fraud Enforcement Department,

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a specialist unit set up by City of London Police

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to combat insurance fraud.

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Dave has dealt with many a fake pet insurance claim in his time.

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But he'll always remember his first ever case.

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My unit investigated an interesting case involving a young lady

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who was out in a park walking her two pedigree Chihuahua dogs.

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She was approached by two youths,

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who, during the course of this encounter,

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eventually made off with her two Chihuahuas against her wishes.

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Pedigree Chihuahuas can cost thousands of pounds.

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The dog's owner did what any other owner of a pedigree pooch would do

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if their pride and joy went missing.

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The dogs were valued to the tune of £1,500 each.

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She reported this theft and also made an insurance claim to her company

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for the loss of those two pet Chihuahuas.

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But the woman owner

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wasn't just claiming for the cost of the Chihuahuas.

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In addition to that, the lady also claimed £2,600 worth of printing costs

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for some laminated posters, which she allegedly put up in the local area

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in her effort to trace these two dogs.

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In total, the dogs' owner submitted a claim for around £6,000

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for the Chihuahuas, named Jet and Gizmo,

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giving the insurance company photographs of the dogs

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and receipts for their purchase.

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But something about her story didn't quite add up,

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and her insurance company got in touch with DCI Dave Wood,

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who investigated further.

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He took a closer look at the receipts

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and didn't like what he saw.

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The receipts that were produced by the offender

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were on what I would describe as scraps of paper.

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I'd be expecting for high value pedigree animals worth £1,500 each,

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they'd be acquired from a breeder,

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and that breeder would have official invoice

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or some sort of headed notepaper.

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Dave then discovered something rather odd

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about the photos of the Chihuahuas.

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In fact, the photograph that she put forward to the insurance company

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as being the image of Jet, in fact turned out to be obtained

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from an American Chihuahua Appreciation Society website.

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But it wasn't just the photographs that were fake.

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Our enquiries revealed that these posters were never in fact printed,

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she never in fact paid for them

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and she therefore never put them up anywhere.

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So the whole thing was fake.

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In fact, the only place where Jet and Gizmo existed

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were in the vivid imagination of their so-called owner.

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This was a fake claim. It was totally fraudulent,

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and the two dogs were never in her possession or even existed.

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The wannabe Chihuahua-owner eventually admitted

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her claim was dishonest and fraudulent.

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She was officially cautioned by the police.

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For Dave Wood, the case of the fake Chihuahuas, and others like it,

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have serious implications for honest animal lovers everywhere.

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Up to £50 of that pet owner annual policy

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is on as a direct result of insurance fraud.

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And our unit has been set up to target people

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who are hitting the industry in this way.

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And over time, we are hoping to make a significant impact

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and reduce people's premiums.

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This is Felixstowe Port - Britain's biggest container port.

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Over 40% of everything that is shipped into the country comes through here.

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That's around three and a half million containers

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arriving at the port each year.

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And when it comes to spotting the ones which contain fake goods,

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the UK Border Agency have their work cut out.

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So, they use mobile X-Ray scanners. Both large, and small.

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This morning they've identified a consignment of ten suspect crates that have come in from China.

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The crates have been listed as containing kitchen utensils.

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But Andy Darke is using one of the smaller X-Ray scanners

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to take a closer look at what's inside one them.

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And although it's meant to be pots and pans,

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the machine's showing there's something organic inside.

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There's only one way to find out for sure what the organic material is.

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Time for the good, old-fashioned crowbar.

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And as we can hear from the way they're rattling,

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we expect this to be the kitchen equipment.

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There we are!

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The crate does indeed contain cooking utensils,

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but not ones you'd want to use with your Sunday roast.

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If you try to pick anything up with it - oh dear.

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Couldn't even pick up a Brussels sprout with it.

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In fact, this dodgy kitchenware is what's called a cover-load.

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Items packed into the top of a container for the sole purpose

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of concealing an illicit load.

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In this case, cigarettes.

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And to the untrained eye, ordinary cigarettes destined for British retailers.

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These look very good.

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They've even got the tear-off strip that says "part of a multi-pack".

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There's a UK barcode on there.

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People would be buying these and paying the normal UK price for them,

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believing them to be the real thing.

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But for the experienced eyes of the UK Border Agency,

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there is a tell-tale sign that these are in fact fake cigarettes.

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These are undoubtedly counterfeit cigarettes,

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because why would somebody be importing British-made cigarettes

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with "UK duty paid" on them into England from China?

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The numbers of fake cigarettes found under their counterfeit cover-load are starting to add up.

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Three boxes in there and there's 8,000 in each box.

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160,000.

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So ten boxes make it 1.6 million.

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The revenue involved is well over a quarter of a million pounds,

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so the consignment itself, the retail value in the shops,

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is probably in the region of half a million pounds.

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The counterfeiters know that some of their crates

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might be intercepted by hawk-eyed officials.

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So they're always looking for ingenious ways to smuggle

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their fake fags into Blighty.

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The cover loads we've found recently can vary from anything from shoes,

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tissues, kitchen utensils.

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They always try to find ways around it and it's up to us to try

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and catch them out, and find what they're doing.

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But the fakers will need to up their game if they want to get

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their gear past Felixstowe's inquisitive gatekeepers.

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All they've done probably is assuming we might go in through the top,

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open one of them and think, "Ah, it's all right, it's kitchen stuff",

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"We'll leave the rest of it."

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But we're not like that. We'll have a proper look.

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And have a proper look they do.

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At anything suspicious that comes into the port.

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And Andrew Rose has come across an entire shipping container,

0:19:430:19:47

again from China, with a rather playful cover-load.

0:19:470:19:51

Cheap toys.

0:19:510:19:54

The box isn't even full, is it.

0:19:540:19:56

It's only half full.

0:19:560:19:59

But the fakers can't buy Andrew off with a car.

0:19:590:20:02

He wants to see what lies beneath the fake cover-load of this container.

0:20:020:20:05

We're about six foot from the end of the container now

0:20:050:20:08

and we've actually reached where the actual cigarettes are.

0:20:080:20:11

The cigarettes come from China,

0:20:110:20:13

but mysteriously, the tax labels on them are Dutch.

0:20:130:20:16

It's for sale in the UK,

0:20:160:20:18

but maybe having a Dutch appearance gives it an air of respectability,

0:20:180:20:23

if you like, so anyone selling it would suggest to the customer

0:20:230:20:26

that it's been brought from Holland, so they're genuine.

0:20:260:20:31

Andrew can smell a fake cigarette a mile off.

0:20:330:20:36

Counterfeit cigarettes do have more of a chemically smell to them,

0:20:360:20:41

which these do actually,

0:20:410:20:43

so again that leads us to suspect that they're probably counterfeit.

0:20:430:20:46

And there are other tell-tale signs that these are fake fags.

0:20:460:20:52

This particular one, the packaging has got a little bit of a red stripe

0:20:520:20:55

going through one of the actual individual packets.

0:20:550:20:58

This one's got a tax stamp missing.

0:20:580:21:02

This one, one of the cartons has got the labelling the wrong way round,

0:21:020:21:07

so it's attention to detail which tends to suggest that

0:21:070:21:10

they're not the genuine thing.

0:21:100:21:12

In total, the UK Border Agency officers find 400,000 fake cigarettes

0:21:150:21:19

in the back of the container.

0:21:190:21:21

And in this warehouse, there are millions of fake cigarettes

0:21:230:21:27

that have been seized over the past 12 months.

0:21:270:21:30

Every year, British ports seize tens of millions of fake cigarettes,

0:21:300:21:34

originating mainly from China.

0:21:340:21:37

Later on, we see how fake cigarettes

0:21:380:21:40

aren't just being imported into Britain.

0:21:400:21:43

They're even being produced in phenomenal numbers

0:21:430:21:47

in our own back yard.

0:21:470:21:48

And, the unexpected dangers that lurk inside.

0:21:480:21:52

We've found high levels of lead,

0:21:520:21:54

which is a central nervous system poison.

0:21:540:21:58

Earlier, we saw how London's Wembley Market is rife with

0:22:060:22:10

counterfeit clothing, shoes, and jewellery.

0:22:100:22:13

But the problem of fake market merchandise reaches far beyond London,

0:22:130:22:17

and goes beyond fake clothing.

0:22:170:22:19

Fake CDs and DVDs on a market stall.

0:22:220:22:24

Not perhaps an unusual sight, but while it might look like

0:22:240:22:27

a small-scale crime,

0:22:270:22:28

it's actually the public face of an illegal trade

0:22:280:22:32

now worth an estimated £100 million a year in the UK.

0:22:320:22:35

Attempting to disrupt that trade are the Greater Manchester Police.

0:22:380:22:43

As night falls, they're taking part in an operation,

0:22:430:22:46

led by Suzie Winter from the Alliance Against Intellectual Property Theft.

0:22:460:22:50

We're heading to one of six addresses across the Greater Manchester Salford area,

0:22:500:22:55

where we suspect there will be significant amounts of counterfeit products

0:22:550:22:59

that service three main markets in the Greater Manchester and Salford area

0:22:590:23:03

that are hotbeds for the sale of counterfeit goods.

0:23:030:23:06

All of a sudden, the team are given the green light to go in.

0:23:080:23:11

We're can just see the police van's just pulled up ahead of us.

0:23:110:23:14

As the search gets under way inside the house,

0:23:160:23:19

some younger members of the neighbourhood bob up

0:23:190:23:21

to see what's going on.

0:23:210:23:23

BLEEP from Ashton!

0:23:230:23:24

Damian!

0:23:240:23:26

Sorry.

0:23:260:23:27

You stay over here!

0:23:270:23:28

Oi!

0:23:280:23:30

ARGUING CONTINUES

0:23:300:23:31

Inside the house, the officers are amazed by what they've found.

0:23:340:23:38

Just at this one property tonight, is about 500 discs,

0:23:380:23:42

probably a value of product on those discs of about £8-£10,000.

0:23:420:23:46

It's going to be enough to run a market stall.

0:23:460:23:48

They found two DVD burners,

0:23:480:23:51

blank discs ready to be put into the burner,

0:23:510:23:54

they found plastic casing,

0:23:540:23:56

so all the things you would need to run a piracy operation.

0:23:560:24:00

Behind the walls of this suburban house, there is a DVD factory.

0:24:000:24:04

And the officers caught the man faking the discs red-handed!

0:24:040:24:08

The burner was even switched on and was in operation

0:24:080:24:11

as the police went into the property.

0:24:110:24:13

The gentlemen that the police were looking for was at home

0:24:150:24:18

and has been arrested and taken to the police station.

0:24:180:24:21

For the team, it's a great result,

0:24:210:24:24

and one that's helped to protect British businesses.

0:24:240:24:26

Traders are going out of business because they can't compete with

0:24:260:24:29

the prices that these criminals pay, charge for their product.

0:24:290:24:33

Industry loses money, jobs are lost.

0:24:330:24:37

And there are links to other criminal activity.

0:24:370:24:41

Detective Inspector Caroline Walker from Greater Manchester Police

0:24:440:24:48

knows all too well the huge impact that counterfeiting has had

0:24:480:24:51

on honest traders at Manchester's outdoor Salford Market.

0:24:510:24:56

The market here at Salford used to have a number of stalls

0:24:580:25:02

but gradually over the years, we've seen a steady increase

0:25:020:25:05

in the amount of stalls selling counterfeit items

0:25:050:25:08

taking over the market themselves,

0:25:080:25:09

selling vast quantities of these goods.

0:25:090:25:12

The legitimate traders are being pushed away from these stalls

0:25:120:25:17

and were unable to actually purchase stalls on a weekend

0:25:170:25:20

as they were being taken over

0:25:200:25:22

by the counterfeit and illegal criminal gang.

0:25:220:25:25

After repeated attempts to combat

0:25:270:25:29

the criminal counterfeiters taking over the market,

0:25:290:25:32

it was shut down

0:25:320:25:33

and the legitimate traders offered a place in the indoor market,

0:25:330:25:37

free from unfair competition from the fakers.

0:25:370:25:40

Criminal gangs attempt to smuggle

0:25:500:25:53

hundreds of millions of fake cigarettes into the country each year

0:25:530:25:57

through our major sea ports.

0:25:570:25:59

They'll use everything from kitchen utensils to toy cars

0:25:590:26:04

to cover up their antics.

0:26:040:26:05

But shockingly, some crime gangs are producing fake cigarettes

0:26:070:26:11

right here in Britain

0:26:110:26:12

and even setting up fake cigarette factories right under our noses.

0:26:120:26:16

Lee Fletcher found this out the hard way.

0:26:180:26:21

He helps to run a successful family business, Tapton Business Park.

0:26:210:26:25

Lee's family had rented out one of their industrial units

0:26:250:26:29

to business partners Phillip Hall and Philip Robinson.

0:26:290:26:32

Nothing was ever flagged up in our eyes to question them, you know.

0:26:320:26:36

They just seemed like normal guys,

0:26:360:26:38

there was nothing questionable about them.

0:26:380:26:40

Rent were paid on time, not a problem.

0:26:400:26:42

But Hall and Robinson were anything but your average guys next door.

0:26:450:26:50

And one morning, out of the blue,

0:26:500:26:52

Lee got the phone call that he'll remember for the rest of his life.

0:26:520:26:56

We've got two of our own companies down here

0:26:560:26:58

and we got a call from one of the management team,

0:26:580:27:01

saying how, unfortunately, work had been stopped

0:27:010:27:05

due to the seizure of this big cigarette factory.

0:27:050:27:10

It just stopped work, nothing going on, that's it.

0:27:100:27:13

Lee was horrified to learn that his tenants were in fact criminals

0:27:140:27:18

who were plotting to set up a huge fake cigarette factory

0:27:180:27:21

behind the closed shutters of their rented industrial unit.

0:27:210:27:25

Robinson headed up the UK operation

0:27:280:27:31

and Hall was the main supplier of tobacco.

0:27:310:27:34

But the criminals would never get the chance

0:27:340:27:36

to put their ambitious plan into action.

0:27:360:27:38

What they didn't realise

0:27:400:27:42

was that Gary Lampon and his team at HM Revenue and Customs

0:27:420:27:45

had had them under surveillance for some time.

0:27:450:27:49

And finally, they had enough evidence

0:27:490:27:51

to swoop on Unit 8 at the business park.

0:27:510:27:53

The officers were astounded at what they found.

0:27:550:27:58

When officers entered the premises,

0:28:020:28:04

they were really quite surprised by the scale.

0:28:040:28:07

There were a large number of machines.

0:28:070:28:09

They ranged from the cigarette-making machines

0:28:090:28:11

through the packaging and actually the cellophane machines as well

0:28:110:28:15

that were used to wrap and pack the packets of 20.

0:28:150:28:19

Alongside those machines

0:28:190:28:20

were a huge number of flat-packed cigarettes cartons.

0:28:200:28:24

It was an extremely professional set-up.

0:28:240:28:27

The tobacco manufacturing plant was so sophisticated,

0:28:270:28:30

the gang flew in expert technicians from overseas

0:28:300:28:33

to put it together and operate it.

0:28:330:28:35

This was a fake cigarette factory

0:28:350:28:37

capable of operating on an industrial scale.

0:28:370:28:41

We're talking potentially upwards of 625 million cigarettes a year.

0:28:410:28:45

It's running along the same kind of scale

0:28:450:28:47

as an actual international cigarette manufacturing firm

0:28:470:28:50

like Imperial Tobacco or Gallaher Brothers.

0:28:500:28:53

They used machinery which had the capacity

0:28:530:28:55

to turn out thousands and thousands and thousands of cigarettes per hour.

0:28:550:28:59

But rather than targeting mainstream manufacturers,

0:28:590:29:02

Hall and Robinson planned to breathe new life into an old Russian brand.

0:29:020:29:08

The manufacturing facility was aiming to produce fake Idigoff cigarettes.

0:29:080:29:12

Idigoff are a Russian brand which is no longer in production.

0:29:120:29:15

It's all about duping the public

0:29:150:29:17

into believing they're buying a legitimate product

0:29:170:29:20

that was smuggled from overseas.

0:29:200:29:22

With the machinery churning out fake cigarettes day and night,

0:29:220:29:25

the gang would have to go to extraordinary lengths

0:29:250:29:28

to conceal their activities and keep below the radar.

0:29:280:29:31

You can see on the wall here the soundproofing that had been put in

0:29:320:29:36

because the machinery itself was extremely noisy.

0:29:360:29:38

The other people here would have had no idea what was going on.

0:29:380:29:41

Once those shutters go down, it's sound-proofed

0:29:410:29:44

and anything could be going on behind the doors.

0:29:440:29:47

The fakers were so eager to make a killing with their cigarettes

0:29:490:29:53

that they had tobacco-manufacturing equipment set up

0:29:530:29:56

and ready to go in other industrial units in Nottinghamshire.

0:29:560:29:59

Investigators found cigarette-manufacturing equipment

0:29:590:30:03

capable of producing up to 750 million cigarettes a year

0:30:030:30:07

and in a nearby barn,

0:30:070:30:10

100,000 fake Golden Virginia pouches.

0:30:100:30:13

Gary and his team had stopped

0:30:140:30:16

one of the largest ever cigarette factories found in the UK.

0:30:160:30:21

Certainly in terms of scale,

0:30:210:30:22

this factory was one of the largest seen in the country.

0:30:220:30:25

The revenue lost on cigarette smuggling

0:30:250:30:28

is around £2 billion a year, we estimate.

0:30:280:30:30

If this cigarette factory had been up and running

0:30:300:30:32

and manufacturing at full capacity,

0:30:320:30:35

we've a potential of losing a further £131 million a year.

0:30:350:30:38

It's a very substantial sum

0:30:380:30:39

and underlines the scale of the operation.

0:30:390:30:42

Philip Robinson was sentenced

0:30:420:30:44

to seven years and four months in prison.

0:30:440:30:48

His partner in crime, Phillip Hall, was already serving five years

0:30:480:30:51

for offences relating to fake cigarettes

0:30:510:30:54

and he was given 18 months on top of that.

0:30:540:30:57

It was a great result for Gary and his team

0:30:570:30:59

but the experience has had a lasting impact

0:30:590:31:03

on the owners of this business park.

0:31:030:31:05

We had a downturn in business, obviously,

0:31:050:31:07

while the investigation was going on.

0:31:070:31:10

They kind of shut the site - that's it, it's all systems stop.

0:31:100:31:13

It put us in a position where we were losing £15,000 per day.

0:31:140:31:19

It's a lot of money to lose, especially for a family-run company.

0:31:190:31:23

From now on, they're going to be a lot more wary

0:31:240:31:27

about prospective tenants who knock on their door.

0:31:270:31:30

Since it's happened, we vet our tenants a lot more.

0:31:300:31:33

I can only advise on other landlords to do the same.

0:31:330:31:36

Coming up, we find out what's inside the fake cigarettes

0:31:360:31:40

that are flooding into the country.

0:31:400:31:43

They may contain certain substances

0:31:430:31:45

which are toxic or dangerous to health.

0:31:450:31:47

There's nothing us Brits love more

0:31:550:31:57

than relaxing over a cool pint of beer -

0:31:570:32:01

so much so that we buy nearly two million pints a day.

0:32:010:32:04

But when is a pint not a pint?

0:32:060:32:08

Well, when it's got a large head of froth on it.

0:32:080:32:11

Well, here we have an example

0:32:110:32:13

of a rather badly-poured pint with a huge head.

0:32:130:32:16

That's probably about 20% short.

0:32:160:32:18

You're probably losing 50 or 60 pence on that pint.

0:32:180:32:21

Iain Loe from the Campaign for Real Ale

0:32:240:32:26

thinks he's onto an invisible crime

0:32:260:32:28

that could be happening in a pub near you.

0:32:280:32:32

People are buying what they think is a pint

0:32:320:32:34

but what they are receiving is far less than a pint.

0:32:340:32:36

It's 95-90% of a pint. They are fake pints.

0:32:360:32:39

Industry guidelines recommend

0:32:390:32:42

that a pint can be 95% liquid

0:32:420:32:45

and the rest of it can be head, or froth.

0:32:450:32:48

But some pubs are serving their pints

0:32:480:32:50

with more froth and less liquid

0:32:500:32:52

and that's called a short measure.

0:32:520:32:54

A fake small pint might not seem like a big deal

0:32:540:32:57

but Iain has a head for figures

0:32:570:32:59

and he thinks this could be a huge crime going unnoticed.

0:32:590:33:03

A short measure may be just small beer to some people

0:33:030:33:06

but adding up all those bits of small beer

0:33:060:33:09

comes out to a lot of beer in the end

0:33:090:33:11

and we calculate it's probably £1.3 million a day

0:33:110:33:15

that's being lost by the consumer

0:33:150:33:17

by beer being served that is too short.

0:33:170:33:20

That's £440 million a year.

0:33:200:33:22

I think there are a lot of British beer drinkers, pub goers, who don't realise they're being rooked.

0:33:220:33:28

Their pockets are being picked, as it were, without their knowledge.

0:33:280:33:32

But luckily for beer lovers, Trading Standards are on the case of this invisible crime.

0:33:350:33:39

And not just any Trading Standards team.

0:33:390:33:42

The Weights and Measures team.

0:33:420:33:45

Ash Shah is a man who takes his quantities seriously.

0:33:450:33:51

Almost £2 billion worth of trade every day is carried out where goods are measured,

0:33:510:33:58

by some way, shape or form.

0:33:580:34:00

Even slight differences in what you're getting, as opposed to what you've paid for,

0:34:000:34:05

can mean huge, huge profits for those unscrupulous traders.

0:34:050:34:11

More specifically, unscrupulous pubs that might be short-changing their customers

0:34:130:34:17

by serving pints that are less than pints.

0:34:170:34:21

We followed Ash and his Weights and Measures team

0:34:210:34:23

on an evening operation to weed out the pint fakers.

0:34:230:34:27

We're off to a pub.

0:34:270:34:28

We're going to having a look to see whether they're dispensing a correct pint as opposed to a fake pint,

0:34:280:34:34

making sure that consumers are getting the amount of liquid they're paying for.

0:34:340:34:38

And woe betide any publican found to be under-filling their pints.

0:34:380:34:44

If we find that any of those is below what we expect to get in terms of the tolerances which are allowed,

0:34:440:34:50

then we'll take some appropriate action.

0:34:500:34:52

Whether that be seizing the equipment, having a word with the publican,

0:34:520:34:56

maybe with a view to taking a prosecution or not.

0:34:560:34:59

In the first pub, the team quickly get to work by posing as evening drinkers.

0:35:010:35:06

We bought a pint of Fosters, we bought a pint of Carlsberg.

0:35:070:35:10

That looks to be absolutely fine at the moment.

0:35:100:35:12

But is there too much head on this pint?

0:35:140:35:16

A simple test can tell Ash and the team.

0:35:160:35:18

First, an anti-foaming agent is dripped into a specially-calibrated flask to turn the whole pint,

0:35:200:35:25

including the head, into liquid.

0:35:250:35:28

The flask will tell Ash exactly how much beer is in this glass.

0:35:280:35:34

The results are in.

0:35:340:35:35

The line for the perfect pint is there.

0:35:360:35:41

Basically, we are only about 7, maybe 8mls short of a pint.

0:35:410:35:46

That's nearly 99% of a pint. Well within the guidelines.

0:35:460:35:50

That was, yeah, a fairly healthy pint there.

0:35:500:35:54

If I was served one of these pints I'd be quite happy.

0:35:540:35:57

Time for the next pub. Once again the team pose as customers.

0:35:590:36:05

So we've got a pint of Stella and a pint of Fosters.

0:36:050:36:08

And it's not looking good.

0:36:080:36:11

Both of those look to have fairly substantial heads on them,

0:36:110:36:14

so, I think when we have a look to see exactly what they contain,

0:36:140:36:18

we'll have a better idea of exactly how much fluid is contained within that.

0:36:180:36:23

The team carry out the same tests on the beer and the results are pretty conclusive.

0:36:240:36:29

-This little red line here should be what the pint should be.

-Yes.

0:36:290:36:33

And what we've got is this much.

0:36:330:36:36

It's actually gone off the scale here.

0:36:360:36:39

The pint is 40ml short.

0:36:390:36:43

With a bit of number crunching, it's clear that you might want to look elsewhere for your evening drink.

0:36:430:36:49

What we've actually got here, is we've actually got a pint which we've paid £2.90 for.

0:36:490:36:55

In reality, we should have paid £2.69 for that same pint.

0:36:550:36:58

That, to me, would be a fake pint.

0:36:580:37:00

I'm not getting the full pint of beer that I've actually paid for.

0:37:000:37:04

This pub's pulling 21 pence less than a full pint.

0:37:040:37:08

So, Ash isn't going to pull any punches when it comes to giving the manager some friendly advice.

0:37:080:37:13

You're trained to dispense this so you must make sure that the consumer gets what they've paid for.

0:37:130:37:18

Yeah?

0:37:180:37:20

If you were to go into a petrol station, yeah? And you put in £20 worth of petrol but only got £19 out,

0:37:200:37:26

you wouldn't like that. You wouldn't be happy. Yeah?

0:37:260:37:29

And it might not be the way the pints are being pulled.

0:37:290:37:33

It could even be down to the glasses having the wrong markings.

0:37:330:37:36

We're going to seize these two glasses.

0:37:360:37:39

Ash and the Weights and Measures team will investigate this bar further

0:37:390:37:44

to find out what caused the short pint and they'll analyse the glasses the pints are served in.

0:37:440:37:50

For Ash, it's a victory for protecting your rights as a consumer

0:37:500:37:53

so that you know you're getting what you're paying for.

0:37:530:37:56

Under the circumstances that we've just seen,

0:37:560:37:59

if that was replicated in all the pubs right throughout the country for every pint sold,

0:37:590:38:05

that would mean £159 million extra that consumers are paying for. It's absolutely staggering.

0:38:050:38:12

Back in his local cosy pub that sells real pints,

0:38:160:38:19

Iain and the Campaign For Real Ale are taking a glass half full approach to the problem.

0:38:190:38:25

They say you don't have to settle for a pint you're not quite happy with!

0:38:250:38:29

Consumers should rebel and ask for their pints to be topped up and get genuine pints

0:38:290:38:35

and not be content with fake pints.

0:38:350:38:37

We've seen how the fakers are trying to smuggle counterfeit cigarettes into Britain

0:38:470:38:52

and spoken to the victims of the fake cigarette factories being built right here in the UK.

0:38:520:38:57

And while we all know that smoking real cigarettes is bad for you,

0:38:590:39:03

smoking fake cigarettes could be even worse.

0:39:030:39:06

These fake cigarettes were seized in a series of raids by Blackpool Trading Standards.

0:39:060:39:12

We had them tested at Lancashire Scientific Services.

0:39:120:39:16

Andrew Smith will check to see if there's anything unusual, or even harmful, inside them.

0:39:160:39:23

They may contain certain substances which are toxic

0:39:230:39:26

or dangerous to health.

0:39:260:39:29

This looks like a simple test, but after years of experience scrutinising fake cigarettes,

0:39:310:39:37

Andrew can see the wood for the trees.

0:39:370:39:41

There are some fairly serious chunks of what appears to be wood in this one.

0:39:410:39:46

You wouldn't find chunks of wood in legitimately-produced cigarettes.

0:39:460:39:50

They appear to be cigarettes made of tobacco contaminated with floor sweepings.

0:39:500:39:55

The presence of pieces of wood are obviously not normal in cigarettes.

0:39:560:40:00

There's evidence that it is a counterfeit product.

0:40:000:40:03

Smoking floor sweepings is bad enough, but research shows that inhaling wood smoke

0:40:040:40:09

can be as harmful as breathing in fumes from a car exhaust.

0:40:090:40:13

Fake cigarettes have been found to contain animal hairs and even droppings.

0:40:150:40:19

But the human eye can only see so much.

0:40:190:40:22

With access to state-of-the-art equipment, Andrew has, in the past, analysed fake cigarettes

0:40:240:40:29

which contained substances a lot more harmful than that.

0:40:290:40:34

Time for some heavy metal.

0:40:340:40:36

This is the equipment we use to measure the amount of heavy metals in the samples.

0:40:380:40:43

It measures, lead, cadmium, mercury and arsenic.

0:40:430:40:46

In recent samples of counterfeit tobacco,

0:40:480:40:52

we found high levels of lead,

0:40:520:40:54

which is a central nervous system poison.

0:40:540:40:57

Lead is also a long-term cumulative poison.

0:40:580:41:03

And the levels we've found are very much higher than we would find in normal cigarettes.

0:41:030:41:09

A steady build up of heavy metals could play havoc with your health.

0:41:110:41:15

The result of smoking these over a period of time would be that the heavy metals accumulate in the body

0:41:150:41:21

resulting in the classic signs of heavy metal poisoning, which is a central nervous system poison.

0:41:210:41:27

Classically, for mercury, that would be the Mad Hatter syndrome where people exhibit signs of dementia.

0:41:270:41:35

Fake cigarettes have been found to contain 75% more tar, 28% more nicotine

0:41:360:41:43

and 63% more carbon monoxide than you'd find in real ones.

0:41:430:41:47

That's double the amount of cancer-causing agents.

0:41:470:41:50

After they've been seized and tested, they need to be destroyed

0:41:530:41:56

so there's no chance of them falling in to the wrong hands.

0:41:560:42:00

And HM Revenue and Customs have come up with an ingenious and environmentally-friendly way

0:42:000:42:04

to turn something fake into something functional.

0:42:040:42:08

The cigarettes are taken to a secret facility

0:42:090:42:14

where they're shredded and then pulped.

0:42:140:42:16

With the final product being taken to power stations

0:42:160:42:19

where it is used to generate electricity for the National Grid.

0:42:190:42:23

That's all from Fake Britain today. Bye for now.

0:42:290:42:32

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