Counterfeiters jailed for UK's biggest-ever currency scam

The seven-strong gang had operated for more than two years after setting up a factory to print up to 10 million worth of fake 10 notes and $100 bills.

The operation spanned the world, and the investigation to hunt the gang down involved the United States Secret Service.

Anatasios Arnaouti, 37, born and raised in Manchester from a Greek-Cypriot family, put together the gang along with David Harper, a criminal from Liverpool in charge of distributing the money.

They then acted as counterfeit cash wholesalers for other criminals across the UK before they were finally caught, in December 2002.

The gang printed thousands of false 10 notes, selling them in bulk for 80p per note, and $100 bills for 6, the Crown Court in Manchester heard.

Bank of England experts said the sterling fakes were "very good" quality and the dollars "excellent".

Arnaouti was yesterday jailed for eight years and Harper for six and a half for conspiracy to make counterfeit currency.

When officers from the National Crime Squad raided the gang's base they found holdall bags stashed with fake cash, one bag containing $1 million alone.

Arnaouti, a father of one who drove a 70,000 Mercedes, had only been out of jail a month, after serving a two-year sentence for counterfeiting, when he put the gang together, recruiting his master forger Philip Raynor, a printer.

They set up a bogus printing firm as a cover and hired a backstreet workshop in Ashton-under-Lyne, in Greater Manchester.

Arnaouti, a skilled graphic designer, and Raynor scanned into a computer genuine 10 and 20 notes so they could perfect the watermark and colours before making copies.

They also had stolen holograms to manufacture fake American Express travellers' cheques.

Raynor, 48, a petty criminal, was paid a "peanuts salary" by Arnaouti - 200 a week - for printing off millions of pounds' worth of fake cash.

Raynor was waiting for his boss to come and pay his wages at the workshop when police launched their raid in 2002.

Officers found 1,685,930 in fake 10 notes, $3,377,300 in fake $100 notes and reels and hologram images capable of producing $3,539,400 in travellers' cheques. More cash produced by the gang was recovered after being circulated. The totals seized and recovered are 2,555,600 and $3,660,600. With the $3.5 million in US travellers' cheques, the final potential counterfeit haul is worth more than 6.5 million.

National Crime Squad officers say they believe it to be the biggest fake cash scam in UK history. Passing sentence, Judge Bernard Lever said: "At the time of the police raid this was a 10 million-plus conspiracy. [It was] even described as 'substantial' by American secret service standards."

Arnaouti, of Failsworth, Manchester, was found guilty of conspiracy to make counterfeit currency, conspiracy to pass counterfeit currency and conspiracy to handle stolen goods.

Raynor, 48, of Rochdale, Greater Manchester admitted conspiracy to make and to pass counterfeit currency and conspiracy to handle stolen goods, and was jailed for four years.

Harper, 37, of Liverpool, was found guilty of conspiracy to make counterfeit currency and American Express holograms.

Four minor members of the gang either received minor sentences or have yet to be sentenced.