Powys County Council has won its case at the Court of Appeal, following a legal challenge to the seizure of “investment properties” linked to a multi-million pound business that sold dangerous teeth whitening strips at the Royal Welsh Show.
The case heard at the Court of Appeal was started by Holly Hargreaves, whose husband Matthew, along with his father John, were convicted of being part of a fraudulent enterprise, while Matthew’s mother Jean was convicted of unfair trading practice.
The family, from Knutsford in Cheshire, were found to have made millions selling teeth whitening strips at high profile events such as the Royal Welsh Show in 2013.
The products contained 11 percent Hydrogen Peroxide – more than 100 times the legal over-the-counter limit. Large amounts of the chemical can lead to skin bleaching, blistering, chemical burns or even scarring.
Powys County Council investigated the company and found 30 victims across the UK, one of whom required medical attention. As a result, Matthew Hargreaves and his father were sentenced to 18 months in prison in 2016.
Powys County Council traced assets to recover the proceeds of the sales, which the family were ordered to pay back.
The order made by the court found that Matthew Hargreaves had made £2.5m through the business and that the ‘disposable amount’ was £1.0965m.
This allowed the council to freeze or freeze the sale of assets linked to the family business, including “three investment properties”, one of which has already been sold.
Ms Hargreaves’ representatives argued that her case was that she should now be able to deal with her investment property interests “unfettered” as those interests did not constitute “tainted gifts”.
In an earlier failed appeal, a judge refused to rule on Mrs Hargreaves’ argument “that her interests in the investment properties did not constitute tainted gifts” beyond the £10,250.
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He challenged that point but the judge found that the asset freeze would continue and how much money would be recovered from the council could later be disputed when the council tried to sell the remaining properties.
In the judgment handed down by Judge Michael Fordham, he found that Ms Hargreaves “has made an application which has no legal merit”.
“She did so, in circumstances where the judge below had found in her favor that the adverse finding of HHJ Harris-Jenkins was not binding on her and had set out the practical route to resolving the issue in dispute.
“He also followed through on her application, despite the single judge’s clear reasons on paper. In seeking leave to appeal, voluminous material was placed before the Court, despite the central point being in essence a simple legal argument.
“We have decided to order the applicant to pay Powys County Council’s costs and that it is appropriate to assess those costs ourselves at £22,000.”
