Gangsters use capital flat in fake electrical goods scam

The flat was raided yesterday by anti-counterfeit police as part of a Europe-wide crackdown.

Investigators suspect that tens of thousands of pounds worth of counterfeit power tools and clothing imported from China have been sold by door-to-door salesmen across Britain.

Investigators refused to reveal the exact location of the Edinburgh hub used by the gang.

Specialist anti-Mafia prosecutors arrested seven people in Naples yesterday and seized assets worth more than 10 million, including almost 4m in cash held at banks and safety deposit boxes.

Action also took place in the Czech Republic, Germany, France, Sweden and Spain, all co-ordinated by international agencies Europol and Eurojust.

Benoit Godart, who led the operation for Europol, said no-one was arrested at the Edinburgh property, but paperwork and other evidence was seized that would contribute towards the overall case.

He said: "We collected some evidence that will be of interest to the fraud investigation which is led by colleagues in Italy."

Mr Godart, a specialist in intellectual property crime, said the Edinburgh flat probably served as a base for activities across the UK.