Businessman who sold thousands of counterfeit toys avoids jail

It is thought by authorities to be one of the biggest Trading Standards cases in the United Kingdom. 

The court heard that Khan's company sold thousands of fake toys, including 14,096 counterfeit turtle figures in 2015 and 42,996 fake Spiderman Triple Attack figures between 2014 and 2015.

Members of Kahn's family, who sat in the public gallery clutching copies of the Tanakh, the Hebrew Bible, sobbed as Judge Stuart Baker delivered the sentence.

The judge told Kahn: "The offences involved importing and either selling or storing some 265,000 toys at a total sale price to your customers of over £1.5m. Teenage Mutant Ninja Turtles goods were among the stock recovered 

"Some of those have been returned to you and I'm told you've had to reimburse your customers, but these figures are a reflection of the scale of the business and you and your company were involved in.

"You knew throughout or at some stage that you were buying counterfeit goods. 

"You were informed by Trading Standards officers that some Spiderman toys supplied were counterfeit. 

"Nevertheless you continued to buy from him. 

"I am unable to accept you honestly believed the toys which you supplied or continued to hold in storage were in fact genuine toys." 

Judge Baker said such cases not only undermined public confidence in the goods they buy, but also have the effect of damaging the trading revenue and reputation of the genuine owners of the trademarks. 

He said he could suspend the sentence due to Kahn's good character, long period of honest and reputable trading, and the fact it was probable he will face financial ruin as a result of the Proceeds of Crime Act inquiry which will take place on October 19. 

He added he could not impose sentence on the firm itself until those proceedings. 

The alleged offences came to light during a probe by Blackpool Council's trading standards department after a tip-off that counterfeit 15cm Teenage Mutant Ninja Turtles (TMNT) were on sale at a high-street store in the town. 

Prosecuting, David Traynor described how the importers provided toys to popular high-street chains in Blackpool. 

The court previously heard when sales had been agreed and the companies had requested a sample, genuine toys had been sent - but it is alleged once the transactions were agreed, ASL would source cheaper, black market goods from the Far East. 

Mr Traynor said: "The defendants must have known counterfeit toys were being supplied, and the Crown does not accept it was simply a failure to exercise due diligence. 

"It is a knowing trading in counterfeit goods."

Kahn, a businessman with over 40 years experience, had been made aware of the probe by Trading Standards into his dealing with a toy supplier but had continued dealing with the firm after that date, Mr Traynor said.

Mr Traynor also highlighted the 'complete lack of any checks on delivered stock'. 

Jurors were previously told of incriminating emails between Kahn and his main supplier from China - who called himself Eddie Wong - in which Wong says: "We ask them

The charges amount to 252,841 toys actually sold to firms in Blackpool and across the UK, and 19,783 other toys that were in their possession that they intended to sell. 

Defending, Daniel Thomas said: "This was a new endeavour that went very badly wrong - I can't state it more highly than that. He gave extensive evidence about his trading before this time.

"He accepts he should have done more. He accepts the jury's verdict. The financial cost has been extremely large. . 

Judge Baker ordered a Proceeds of Crime Act hearing to take place on October 19.