Benefits fraudster who sold fake luxury gear through Instagram claimed £158,000 cash found amid baby clothes was her children's life savings

A benefits fraudster who sold fake luxury gear on Instagram has claimed that £158,000 found stashed among baby clothes was her children's life savings.Megan Carney-Borrowman flogged the counterfeit goods, purporting to be Chanel, Burberry and Versace, on social media to her thousands of followers.She built a massive business empire with accounts linked to the mother showing more than £4million was deposited over a four-year period. The mother-of-four from Southport, in Merseyside, was aided by her husband, 35-year-old Jordan Borrowman, and by her mother, Sandra Carney, 65, who also roped in her long-term business partner, Adam Yaffe, 53. The four defendants were sentenced over two days at Liverpool Crown Court this week with Carney-Borrowman being handed a sentenced of four years and three months for conspiracy to commit trademark offences.Carney-Borrowman and her husband's home was raided for the first time in November 2022 after Chanel tipped off anti-crime units to the illicit activity. Neither of them were home, and when they were later asked claimed to not have their phones.Borrowman said his phone was lost and it has never been recovered, although the court heard it was used again following the arrest. Meanwhile Carney-Borrowman tried to deceive officers by handing over her son's phone in a failed attempt to pass it off as her own. However, Carney's phone was recovered and messages led police to uncover Yaffe's involvement.Analysis of Carney-Borrowman's accounts following her first arrest 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. Megan Carney-Borrowman built a £4million business empire flogging counterfeit goods online Pictured: Cash seized from Carney-Borrowman's family home in connection with her counterfeit goods conspiracyMore significantly however, as James Rae, prosecuting, 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 This was seized despite the defendant claiming that it was her children's savings that she had withdrawn.'The seizure of the phone proved to be significant for the investigation, with it showing a 'very large volume of chats from which it was overwhelmingly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 benefited to the tune of 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 North West Regional Organised Crime Unit (NWROCU) officers attended her home, they saw a Rolex on her wrist that matched the same serial number as the apparently missing timepiece.Footage from the NWROCU shows the moment an officer questions Carney-Borrowman about the Rolex on her wrist. After being asked if she was wearing a Rolex, she told an officer 'it's not real...you're not taking it off me. It was for my 30th birthday.'After being told to hand it over, she added: 'It's actually my mum and dad who got it for me so I could probably get a receipt.' When asked if it was a genuine, Carney-Borrowman changed her answer and confirmed it was.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. Meanwhile Yaffe was said to have 'encouraged, cautioned and advised' Carney-Borrowman.In mitigation, Nicholas Clarke, defending Carney-Borrowman, told the court her remorse was not self-pitying but 'reflective of the genuine fear she has for her children'. He said there were developmental concerns regarding all her children, and her youngest had ongoing appointments at Alder Hey Children's Hospital. A Rolex seized from Carney-Borrowman's property Mr Clarke 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.'He told the court that Carney-Borrowman had PTSD following the tragic death of a child in April 2022. The prosecution said that Carney-Borrowman had lied to the author of her original pre-sentence report and claimed she only started selling counterfeit goods as a result of her daughter's death when she felt unable to engage in conventional employment.Michael Lavery, for Carney, said his client had worked her whole adult life, had carried out several selfless acts 'over a number of years to assist people less fortunate than her' and had supported her two daughters; both of whom had children of their own.He told the court: 'It seems to anyone approaching this case that this is a mother doing her best for a daughter who has a number of problems. There is no more a person than a mother who wants to help her child, misguided and naïve it has been.'Richard Vardon, representing Borrowman, said: 'It may be the position that the mother of the children cannot care for them in the immediate future so they would be more impacted if this defendant was to go to prison as well.'Andy Evans, for Yaffe, told the court his client's offending was characterised by his relationship with Carney-Borrowman. 'He assisted her with things mundane, things tragic and difficult, and things happier, such as becoming her wedding photographer,' he said.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.'The judge 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.' Carney-Borrowman during a police raid at her homeJudge Brandon 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.'Carney-Borrowman, 35, and of Birdling Drive in Southport, 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, 35, and of the same address, 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, and of Court Road 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.And 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.'