A Southport mother who sold counterfeit designer clothing through an Instagram account has been jailed after claiming that £158,000 in cash found among baby clothes was her children's life savings.
Megan Carney-Borrowman, 35, of Birdling Drive, was sentenced to four years and three months at Liverpool Crown Court for conspiracy to commit trademark offences, conspiracy to launder money, benefit fraud, and conspiracy to defraud.
Counterfeit operation uncovered
Carney-Borrowman sold fake goods branded as Chanel, Burberry and Versace to thousands of social media followers, stating that no exchanges or refunds would be offered even if buyers were unhappy. She was approached after her success selling weight-loss products online. Business accounts linked to her showed deposits of over £4m across a four-year period.
Her husband, Jordan Borrowman, 35, and her mother, Sandra Carney, 65, assisted her, along with Carney's long-standing business associate, Adam Yaffe, 53. All four were sentenced over two days at Liverpool Crown Court.
Police raids and discoveries
The couple's home was first raided in November 2022 after Chanel alerted anti-crime units. Neither was present, and both claimed not to have their phones. Borrowman said his phone was lost and never retrieved, though the court was told it was used again after his arrest. Carney-Borrowman tried to pass off her son's phone as her own.
Her phone was eventually seized, and messages led police to expose Yaffe's involvement. After her initial arrest, examination of her accounts revealed substantial cash withdrawals, prompting a second raid in April 2023. Officers found her phone on a curtain rail in the master bedroom and discovered £158,000 in cash concealed in her baby's bedroom.
Prosecutor James Rae told the court: "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. This was seized despite the defendant claiming that it was her children's savings that she had withdrawn."
The phone revealed a "very large volume of chats" showing she was selling counterfeit goods using a drop-shipping method, importing them from an overseas supplier directly to customers. Police found she operated eight business bank accounts and 18 personal accounts, some in her children's names. Between 2019 and 2023, business accounts took in nearly £4,319,952.73, with £753,419.50 transferred to personal accounts.
Benefit fraud and insurance claim
Carney-Borrowman was arrested for benefit fraud in May 2024. A Department of Work and Pensions investigation found she profited by approximately £68,300 from undeclared self-employment income, two properties, cohabitation with Borrowman, and shared assets.
She also submitted a fraudulent insurance claim to Halifax after reporting her Rolex missing during an evening out in Blackpool. When NWROCU officers visited, they spotted a Rolex on her wrist with the same serial number. Footage shows an officer challenging her; she initially said "it's not real...you're not taking it off me. It was for my 30th birthday," then said her parents bought it and could provide a receipt. When pressed, she acknowledged it was genuine.
Mr Rae described Carney-Borrowman as the "prime mover" in the offending, "clearly supported and encouraged by her mother." Borrowman was a substantial beneficiary, having sold, packaged and transported goods. Yaffe "encouraged, cautioned and advised" her.
Mitigation and sentencing
In mitigation, Nicholas Clarke, defending Carney-Borrowman, said her remorse reflected "the genuine fear she has for her children," noting developmental concerns and ongoing appointments at Alder Hey Children's Hospital. He said: "Her children revolve around her and most of her waking life is dealing with them...the reports set out the concerns she has about all of the children being looked after by others...the older children's dad has his own court case in this building. Megan has serious concerns if Jordan will be able to deal with the younger children on his own."
The prosecution contended she had misled the author of her pre-sentence report by claiming she only began trading after her daughter's death in April 2022. Michael Lavery, representing Carney, said his client had worked her entire adult life and performed selfless acts to assist others. Richard Vardon, for Borrowman, said the children would be impacted if he went to prison. Andy Evans, for Yaffe, said his client's criminal behaviour was defined by his involvement with Carney-Borrowman, including acting as her wedding photographer.
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 added: "Involvement at any level of counterfeiting are grave offences. You all contributed. It is a consequence of your arrests that your families will also suffer from your criminality."
She told Carney-Borrowman: "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."
Borrowman received 12 months, suspended for 18 months, with 120 hours of unpaid work. Carney received two years, suspended for 18 months, with 120 hours of unpaid work. Yaffe received an 18-month community order and 120 hours of unpaid work.
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."
He added: "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."
