A PAIR of fraudsters who ran a Newport-based company selling unsafe cosmetics, counterfeit goods and fake jewellery have been handed suspended prison sentences.

Stefan Hodgson, of Newport, and Sean Payter, of Penarth, were caught out following an investigation after concerns were raised by the Assay Office, the body responsible for testing precious metals.

The organisation had carried out a test purchase from gems2gems, a company based in newport run by the pair, which sold jewellery on eBay. It found an item described was not silver - as it had been described - and did not contain gem stones the listing said it did. Further test purchases found other items of jewellery were not as described, and cosmetics also being sold by the company were “unsafe”.

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A warrant was executed at Payter’s home in St David’s Crescent, Penarth, where council officers seized jewellery, cosmetics and £12,845 in cash.

The investigation found Hodson, of Park Drive, Newport, had been trading for five years, buying items such as necklaces, bracelets, bangles and earrings from China without verifying that they were genuine, along with counterfeit cufflinks and belts and unsafe cosmetics.

The pair both pleaded guilty to 12 offences - two under Consumer Protection from Unfair Trading Regulations, six under the Hallmarking Act, two under Cosmetic Product Enforcement Regulations and two under the Trademarks Act.

They were sentenced to 20 months in prison, reduced to 14 months for early guilty pleas, suspended for 18 months.They must also pay a victim surcharge of £140 each and Mr Payter will face an investigation under the Proceeds of Crime Act.

Judge Nicola Jones told the men if it wasn’t for their ill health both would have been sent to prison. She said it was a large-scale, sophisticated business and the defendants did not care cosmetic products they were selling were unsafe. She also expressed concern there was no way to recall the offending goods. The judge also said the men showed no duty of care towards purchasers, with complaints and refunds requests ignored.

The investigation was carried out by Shared Regulatory Services, which undertakes investigations in Cardiff, the Vale of Glamorgan and Bridgend.

Cllr Eddie Williams, chairman of the Shared Regulatory Services joint committee and Vale of Glamorgan Council cabinet member for legal, regulatory and planning services, said: “This was a despicable operation that took money from members of the public for items that were not what they purported to be.

“Great work by Shared Regulatory Services has led to this prosecution, which ensures that no more people will fall victim to this company.

“This case should serve as a warning to others operating illegally within our community. The council will actively look to protect our residents and will not hesitate to take action if we find people are not operating within the parameters of the law.”