A fraudster mum from Southport who sold fake designer clothes on Instagram has been jailed after police found £158,000 in cash hidden in her baby's bedroom. Megan Carney-Borrowman, 35, claimed the money was "her children's savings," but a court heard it was the proceeds of a sophisticated counterfeiting operation.
Couple and relatives involved in scam
Carney-Borrowman sold counterfeit goods purporting to be made by fashion brands like Chanel, Burberry and Versace on Instagram while refusing refunds. She began the scam following her success selling weight-loss medication online. Business accounts linked to the mum-of-four showed more than £4 million was deposited over a four-year period, although it could not be confirmed how much was from criminality.
She was aided by her husband, 35-year-old Jordan Borrowman, and by her mum, Sandra Carney, 65, who also involved her long-term business partner, Adam Yaffe, 53. The four defendants were sentenced over two days at Liverpool Crown Court.
Police raids uncover cash and phone
The home of Carney-Borrowman and her husband was first raided in November 2022 after Chanel tipped off anti-crime units to the illicit activity. Carney-Borrowman told police her phone was lost, although it was later recovered and messages led police to uncover Yaffe's involvement.
Analysis of Carney-Borrowman's accounts found she made significant cash withdrawals, and her home was searched again in April 2023. The second raid prompted the discovery of her phone on top of her curtain rail in the master bedroom. James Rae, prosecuting, told the court that £158,000 was then found in her baby's bedroom.
"She also sought to prevent the officers searching her baby's bedroom, although it became apparent that the real reason was that there was £158,000 in cash concealed in there," he said. "This was seized despite the defendant claiming that it was her children's savings that she had withdrawn."
Financial investigation reveals scale
The seizure of the phone proved significant, showing a "very large volume of chats from which it was overwhelmingly evident that she was selling counterfeit goods and using a 'drop-shipping' method to import them from the overseas supplier directly to the customer's address." Police found Carney-Borrowman had eight business bank accounts as well as 18 personal accounts, some in the name of her young children. The court heard between 2019 and 2023 the business accounts received nearly £4,319,952.73, and £753,419.50 of it was paid into her personal accounts.
Carney-Borrowman was then arrested for benefit fraud in May 2024, with an investigation by the Department for Work and Pensions finding she had claimed around £68,300 made up of a failure to declare her self-employment income, her purchases of two houses, her residing with Borrowman, and their joint assets. She was also found to have made a bogus insurance claim after telling Halifax she had lost her expensive Rolex on a night out in Blackpool. But when NWROCU officers attended her home, they saw a Rolex on her wrist that matched the same serial number as the apparently missing timepiece.
Sentences handed down
Mr Rae told the court Carney-Borrowman was the "prime mover" in the offending, "clearly supported and encouraged by her mother." Borrowman was said to have been a significant beneficiary from the proceeds of the counterfeiting, and had at times sold, packaged and carried goods as part of the conspiracy, although in a supportive role. Yaffe was said to have "encouraged, cautioned and advised" Carney-Borrowman.
Sentencing, Judge Louise Brandon said: "The business operated through Instagram accounts and WhatsApp ordering systems with multiple bank accounts, corporate structures, direct overseas suppliers, drop-ship methods, concealed payments and efforts to avoid detection." She told the defendants: "Involvement at any level of counterfeiting are grave offences. You all contributed."
To Carney-Borrowman she added: "I can't accept that your customers all believed they were buying counterfeit goods. If that was the case we would not be here today. You feel you are the victim. Your actions caused your children to see the police in your own home. You have no one else to blame for the impact on your children. You seem unable or unwilling to grasp that your situation is entirely of your own making."
Carney-Borrowman was sentenced to four years and three months for conspiracy to commit trademark offences, conspiracy to launder money, benefit fraud, and conspiracy to defraud. Borrowman received 12 months, suspended for 18 months, and 120 hours of unpaid work after admitting conspiracy to commit trademark offences, conspiracy to launder money and benefit fraud. Carney, 65, was handed two years, suspended for 18 months, with 120 hours of unpaid work after pleading guilty to conspiracy to commit trademark offences, conspiracy to acquire criminal property, aiding and abetting fraud and conspiracy to defraud. Yaffe walked free from court with an 18-month community order and 120 hours of unpaid work after he admitted conspiracy to commit trademark offences and conspiracy to acquire criminal property.
Speaking after sentencing, Detective Inspector Adam Williams of the NWROCU said: "This was a sophisticated and long-running trademarks and money laundering offence which generated significant profits through the sale of counterfeit designer goods while simultaneously exploiting public funds and defrauding an insurance company. The defendants went to considerable lengths to disguise their offending, but detailed financial investigation and partnership working enabled us to uncover the full extent of their criminality. Counterfeit goods are far from a victimless crime. The proceeds often support wider organised criminality, while consumers are deceived into purchasing products they believe to be genuine. This case demonstrates our commitment to pursuing offenders who seek to profit through fraud and protecting both businesses and the public from financial harm."
