Knaresborough luxury car dealer faces 16 fraud charges

The owner of a car dealership in Knaresborough has appeared in court charged with 16 counts of fraud amounting to more than £1 million.

Andrew Mearns, 54, is alleged to have committed the offences at Gmund Cars in Knaresborough between August 2016 and March 2019.

Sixteen different victims were named in the charges, with the largest individual fraud said to be worth £220,000.

Mr Mearns, whose current address was given as Colwyn Place, Llandudno, appeared at Harrogate Magistrates Court this morning to face the charges.

Wearing a white shirt and grey trousers, he spoke to confirm his name and address but did not enter pleas to the 16 counts of fraud by false representation.

Prosecutor Alison Whitely told the court the alleged offences took place over a “considerable period” while Mr Mearns owned and ran Gmund, a company dealing luxury cars.

Magistrates said the case was too serious for them to deal with and told Mr Mearns he would face trial at York Crown Court. His first appearance there was set for June 26.

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Alleged victims of fraud at Knaresborough car dealership call for more police action

The victims of an alleged fraud involving Porsches in Knaresborough have criticised police for the lack of progress in the investigation.

North Yorkshire Police launched an investigation in summer 2019 after allegations that dealership Gmund transferred ownership of cars worth more than £1 million without the owners’ permission.

A man in his 50s was arrested at the time and released under investigation.

Now, almost four years on, the alleged victims have questioned why there has been no update from police since February 2022. One told the Stray Ferret:

“Beyond the frustration, it is more a case of losing faith in the judiciary system and rule of law.”

Asked for an update, a spokesperson for North Yorkshire Police last week said:

“There is no update in the investigation into a Knaresborough car dealership previously enquired about. The investigation remains ongoing, one suspect remains under investigation.”

The Stray Ferret first published at story in summer 2020 after speaking to six alleged victims of fraud at Gmund.

One man, Anthony Place, claimed he was never paid the £52,000 he was owed when his car was sold in early 2019. He grew so frustrated that he painted a message asking for his money on the side of his other Porsche – and hired a plane with a banner bearing the same words to fly over the dealership.

Another man contacted the Stray Ferret to say he had bought a car from Gmund and had since been told by police he was unable to sell or modify the vehicle while the investigation continued.

One of the alleged victims, who asked not to be named, told the Stray Ferret last week he was frustrated by the slow progress of the investigation:

“What disturbs me somewhat is how long this has been dragging on.

“The police had advised me to appoint a solicitor. Legal advice means a lot of money and in my case we have nothing to work from except that others have not had the money they are owed.”

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Gmund was founded in 2006 and was known for buying and selling classic Porsche cars.

The company, which was based at the Nidd Valley Business Park, was dissolved in 2020 and its owner Andrew Mearns was declared bankrupt.

His wife, the former Conservative councillor for Knaresborough Scriven Park, Samantha Mearns, was company secretary from the time it was founded until December 2018.

Ms Mearns told the Stray Ferret in 2020 she was never interviewed by police in relation to the allegations. In July 2021, she resigned from the council and moved to Wales, citing family reasons.

The administrator’s report from June 2020 found more than £1 million in claims stacked up against the business with only £15,000 in assets.

The alleged victim added:

“The police do not seem to be very active. The police, particularly in North Yorkshire, need to rebuild their reputation.

“Regular updates which had been promised have not been exactly forthcoming. It does not put the police in a good light. Mum’s the word and that is not good enough.”

Police still investigating missing Porsches at former Knaresborough car dealership

North Yorkshire Police has confirmed that an investigation into missing Porsche sports cars at a former Knaresborough dealership Gmund Cars is still ongoing.

The police launched its investigation in the summer of 2019 after allegations from customers that Gmund transferred ownership of more than £1 million worth of cars without their permission.

In July 2019, North Yorkshire Police arrested a man in his fifties but no charges have been brought currently.

No further arrests have been made since the investigation began.

A North Yorkshire Police spokesperson said last week:

“The investigation is ongoing and as such we cannot provide any further statement.”

Frustration

One customer of Gmund, who asked not to be named, told the Stray Ferret last week that they are “very frustrated” with the pace of the investigation.

The customer bought a car from Gmund but said they have been told by the police they are not able to sell or modify it until the investigation is complete.

They said:

“I am very frustrated with the protracted process and total lack of transparency. After three years, the pace at which this is being conducted is incredible.”

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History

The company started in 2006 and built up a strong reputation as a place that bought and sold classic Porsche cars.

In 2020, six alleged victims told the Stray Ferret spoke to about their experiences with the firm.

The company, which was based at the Nidd Valley Business Park, has now been dissolved and its owner Andrew Mearns was declared bankrupt.

His wife, the former Conservative councillor for Knaresborough Scriven Park, Samantha Mearns, was company secretary until December 2018.

Ms Mearns told the Stray Ferret in 2020 she was never interviewed by police in relation to the allegations.

In July 2021, she resigned from the council and moved to Wales citing family reasons.