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.”

Date set for Knaresborough Scriven Park by-election

The date for a by-election has been set following the resignation of Harrogate district councillor Samantha Mearns.

Cllr Mearns announced at the weekend that she was stepping away from her Knaresborough Scriven Park ward due to family reasons after holding the seat as a member of the Conservative party since 2018.

A by-election has now been officially called by Harrogate Borough Council which, if contested, will be held on July 29.

The by-election is being run by the council and nomination papers are available during normal office hours from the Returning Officer at the Harrogate Civic Centre on St Lukes Avenue.

Completed nomination papers must be delivered by hand to the same address between 10am to 4pm, Monday to Friday, before July 2.

Announcing her resignation in a letter to residents, Cllr Mearns said she was moving to Wales to be closer to her family after her younger brother died and her mother was diagnosed with cancer.

She said it had been a “great honour” to serve the area where she had lived for more than 18 years.

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Cllr Mearns said:

“In many people’s lives things happen that change the direction of their lives. This is the same with me. Not too long before the pandemic struck, my younger brother – my only sibling – died after a relatively short but terrible illness.

“Shortly after, and during the pandemic, my mother was diagnosed with cancer.

“Having lost my brother and faced with potentially losing my mother in a short time made me look at what I needed to do with my life to do the right thing by my family.”

The by-election will be the second held in Harrogate this year after Conservative councillor Matt Scott last month won the Bilton and Nidd Gorge seat on North Yorkshire County Council following the death of Liberal Democrat councillor Geoff Webber.

Knaresborough set for by-election after Conservative councillor resigns

A by-election is set to be held in Knaresborough’s Scriven Park ward after the resignation of Conservative councillor, Samantha Mearns.

Cllr Mearns won the seat on Harrogate Borough Council in May 2018 with a majority of just 16 votes.

Liberal Democrat candidate, Matthew Walker, came second with 441 votes and the Labour Party’s Andrew John Wright picked up 291 votes.

A total of 36% of the 3,266 electorate voted.

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The by-election, which has yet to be announced by the borough council, will be the first to take place in the Harrogate district since the Bilton and Nidd Gorge election for North Yorkshire County Council last month.

In that election, the Conservative candidate Matt Scott gained the seat from the Liberal Democrats with a majority of 352 votes. The turnout was 37%.

The borough council by-election comes as Cllr Mearns has stepped down from the borough council over family reasons.

She made the announcement to residents over the weekend.

The Stray Ferret understands that Knaresborough resident Jacqui Renton will stand in her place for the next election.

Harrogate councillor resigns for “family reasons”

A Conservative councillor for Harrogate Borough Council and Knaresborough Town Council has resigned from both posts.

Samantha Mearns, who was also chair of the general purposes committee, sent out a leaflet to residents over the weekend.

She said she was resigning after her younger brother died and her mother was diagnosed with cancer.

Her mother’s current prognosis is good but she has recently moved with her husband to Wales to be closer to her family.

She said:

“Sometimes things happen in your life which make you rethink your life plan. Just before the pandemic struck, my younger brother, my only sibling, died from abdominal sepsis.

“With my sister in law and mother I watched him pass away. This had a huge impact upon me.

“Shortly after my mother became seriously unwell and was diagnosed with cancer. Thankfully due to our fantastic NHS her current prognosis is good.

“However this and losing my brother in such a short time has made me look at what I needed to do with my life for my family.

“Our moves have now finalised, and with lockdown restrictions lifting, now is the appropriate time for me to stand aside.”

The Stray Ferret understands that Knaresborough resident Jacqui Renton will stand in her place for the next election.

It is unclear at this time when the by-election will be held. It is also unclear whether Samantha Mearns will stay on as a case worker for Andrew Jones MP.

Police investigation into Gmund Cars Ltd

Samantha Mearns remains at the centre of a police investigation into missing Porsche cars worth more than one million pounds because she had “significant control” in the company which her husband owned.

Gmund Cars Ltd, which traded classic Porsche cars, was dissolved in September 2020.

The Stray Ferret spoke to six victims who took their cars to Gmund Cars Ltd on a sale or return basis. They said they never saw their cars again.

Samantha Mearns told the Stray Ferret last year :

“I was a shareholder in my husband’s business until December 2018.  When the business was put into administration in June 2019, allegations were made which resulted in a police investigation.  As far as I am aware the investigation has concluded with no further action being taken.  I was never interviewed in relation to any of the allegations.”

The Stray Ferret contacted North Yorkshire Police this morning, the investigation has not concluded and is still ongoing.

Strayside Sunday: Whatever happened to the Nolan Principles?

Strayside Sunday is our weekly political opinion column. It is written by Paul Baverstock, former Director of Communications for the Conservative Party. 

Am I alone is reaching a state of desperation about the current state of our politics? Specifically, politicians who refuse blithely to accept accountability for the decisions and actions of their department and instead sacrifice the careers of civil servants tasked with implementing the policies born from politicians themselves.  Politicians who say or do, either that or what, which would have been indefensible just a few short years ago.  Politicians who seek visibility but hide when they become visible for the wrong reasons.  Politicians who do not measure up to standards set by Anthony Nolan’s “Seven Principles of Public Life.”

This week, two long-serving and, as far as we know, previously high achieving public servant lifers – Sally Collier, Chief Executive of Ofqual, the exams regulator, and Jonathan Slater, permanent secretary at the Department of Education – both lost their jobs in the aftermath of the exam grades fiasco.  The imposition of an untested grading algorithm on a cohort of lesson-hungry students stuck at home because of covid lockdown regulations was never going to end well.  But the decision to proceed with the dreaded algorithm was policy, which is always the result of a political decision and a political direction.  In short, the decision to proceed was made by some combination of the Secretary of State for Education, Gavin Williamson, “Gav” as his aides call him – it seems to fit somehow – and the School’s Standards Minister Nick Gibb.  They both remain firmly in post, backed by Prime Minister BoJo for reasons surely passing understanding, while Ms Collier and Mr. Slater are dispatched to spend more time with their pensions.

Gone are the days, much lamented, when politicians resigned their posts as a matter of honour if they presided over a total horlicks in their department, or if they dropped a clanger that affected the public’s confidence – think Edwina Currie, a dozen eggs and salmonella, John Gummer stuffing burgers in his young daughter’s mouth during the Mad Cow crisis, or even Lord Lambton, caught smoking a joint in bed with a prostitute, filmed by a secret camera hidden in a Teddy Bear.  For reasons of competence, confidence or perception they all had to go.  And, looking back at them now, their crimes seem comically small when compared with the chaos precipitated by Mr. Williamson in England and (let’s not let the SNP off the hook) by John Swinney north of the border.  In 2002, Labour Education Secretary Estelle Morris resigned because “I judge my performance as not quite good enough.”  Such candour and humility feels quaintly out of step with the shameless norms of today’s politics.  But it shouldn’t be.

And at what point does the responsibility that comes with election to public office end?  Can a politician ever be considered “off duty” in respect of what they say and what they do?  I do believe politicians are entitled to a private life – their families, loves and lives outside politics should be of no interest to the public and, in my opinion, strictly “off limits” to the press.  However, assuming public office ought to bring with it the requirement of certain, higher standards of behaviour.  For example, racism, hate speech and sexism are never ok, in any circumstance.  Ergo, politicians of any party, elected to any office, can’t be afforded the luxury of drawing their own lines of distinction between the public and private realms of discourse when discussing these topics.  Whether they like it or not, in today’s hyper-connected ‘internet of things’ social media obsessed world, they are “always on.”

I’ve written in this column before about the case of Darley Parish Councillor Ernest Butler, whose unreconstructed personal views on immigration created a froideur (think tumbleweed…) among Harrogate’s chattering classes.  I won’t rehash the specifics, save to mention that his views were nonetheless deemed to fall outside the purview of the local Councillors code of conduct.  Which is to say that no means exists to make the public servant  man accountable for the unacceptable private views he expresses.  Saying you have no charter to punish the culprit simply becomes the means to inaction.  It seems to me that the answer is a radical overhaul of the code of conduct, this to recognise the contemporary realities of public life, conducted as it is, in full and transparent view for all to see and hear.

The issue here is that modern politics is as much about perception as it is about reality.  I wish this were not so but it’s not my call, nor is it the call of politicians, drawn to publicity, like moth to flame.  Our own Andrew Jones MP had a great photo op when, in December 2018, he visited Porsche specialist second-hand car dealer Gmund Cars Ltd and hailed “an amazing business.”  What he did not know is that six Porsche owners who talked to the Stray Ferret and who had placed their cars with Gmund for sale

allege that their vehicle’s ownership had been transferred without permission and did not receive a penny for the sale of cars worth over fifty grand apiece.  Gmund went into administration 6 months later in July 2019, with more than £1 million worth of cars missing.  A police investigation followed.  An “amazing” business indeed.

In his photo op, Mr Jones was pictured standing next to Gmund owner Andrew Mearns and his wife Samantha, a significant Gmund shareholder and company secretary until December 2018. Mrs Mearns is a Harrogate Borough Councillor and a case worker in Mr. Jones’ constituency office.  Not quite a Lord Lambton moment, but none too reassuring.  Councillor Mearns has made it clear she has not been questioned by the police.  Andrew Jones has kept his counsel, neither supporting publicly his Conservative colleague and office employee, nor commenting on the alleged irregularities in Gmund Cars Ltd. He does, however, have an irate constituent or two, each light to the tune both of tens of thousands of pounds and their cherished Porsche motor cars.

 

However we look at all of this, it makes a mockery of The Nolan Principles, to which public office holders are meant to adhere.  For the record the seven principles of public life are Selflessness, Integrity, Objectivity, Accountability, Openness, Honesty and Leadership.  Whether in Westminster or Knapping Mount, these standards seem absent lately; to the point of depressing irrelevance.

That’s my Strayside Sunday.

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Harrogate MP refuses to answer Porsche investigation questions

Andrew Jones MP has refused to answer the Stray Ferret’s questions relating to Cllr Samantha Mearns and a police investigation into missing Porsche cars.

The Stray Ferret revealed yesterday allegations that Gmund Cars Ltd transferred ownership of more than £1 million worth of cars without the owner’s permission. The company was run by Andrew Mearns and dissolved in June 2020.

Cllr Samantha Mearns was a “person with significant control” and company secretary of Gmund Cars Ltd until December 2018. Cllr Mearns remains as an aide to Andrew Jones MP and a councillor for Harrogate Borough Council.

North Yorkshire Police is investigating the allegations and arrested a man in his fifties in July last year. He has not been charged and the force released him under investigation.

The Stray Ferret asked Andrew Jones MP if he had confidence in Cllr Mearns, when he first became aware of the allegations against Gmunds Cars Ltd and whether he had any comments to make on the investigation into Gmund Cars Ltd. Mr Jones has not responded. Harrogate Borough Council told the Stray Ferret that it will take the questions surrounding its confidence in Cllr Mearns and her involvement in Gmund Cars Ltd further.

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We do know that both the council and Andrew Jones MP have received complaints about Cllr Mearns in relation to Gmund Cars Ltd.

The Stray Ferret has seen emails of a complaint put into both Andrew Jones and Harrogate Borough Council about Cllr Mearns and Gmund Cars Ltd. The complaint was made in the spring of last year.

Anthony Place wrote to Mr Jones and told him that Gmund Cars Ltd had transferred ownership of his car without his permission in March 2019  and questioned the “integrity and business practices” of Cllr Mearns.

Andrew Jones MP responded in May 2019 to say he had a conflict of interest and directed Mr Place to his own MP. Mr Jones also pointed Mr Place towards the council’s complaints procedure.

The email in May 2019 response Andrew Jones MP sent to Anthony Place.

 

Harrogate Borough Council’s head of legal and governance responded to Mr Place in June 2019. Jennifer Norton said that the council would not take the complaint further because Cllr Mearns was not acting in her public office duties at the time.

For more on Harrogate Borough Council’s response to Anthony Place’s complaint Read here.

How Harrogate Borough Council responded to a complaint around Cllr Mearns and Gmund Cars

When Anthony Place put his complaint into Harrogate Borough Council, it went to the authority’s monitoring officer, Jennifer Norton, who assessed whether it was something the council would investigate further. 

For councils across the country, including Harrogate Borough Council, the monitoring officer is bound by the code of conduct when it comes to dealing with complaints and its ability to take action against councillors.  

What happened in the case of Cllr Samantha Mearns?

In the case of Cllr Samantha Mearns and the complaint from Anthony Place in June 2019, the borough council felt the councillor was “not engaged in council business” so the rules of the code of conduct did not apply.

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Later that month, the council responded to the complaint regarding Cllr Mearns and said: 

“On this occasion, your complaint is in the context of the alleged misappropriation of customers goods/money by a company in which Samantha Mearns and her husband were directly involved.  

“Samantha Mearns was not engaged on council business when carrying out any activities associated with the company.  

“For this reason, it would not be appropriate for me to refer the matter for investigation under the council’s code of conduct.” 

The council then did not take any further action to investigate the complaint.

It was a similar situation with the case of Ernest Butler

More recently, the Stray Ferret reported on parish Cllr Ernest Butler after racial comments he made on social media regarding a white lives matter protest.

A complaint was made to the borough council about his post, but again said it could not take action. The authority again said the councillor should be engaged in business directly related to the council or constituents for it to breach its code. 

However, these cases do not necessarily always leave the complainant feeling satisfied. 

In the case of Mr Place, he told the Stray Ferret: 

“For the life of me, I cannot see how someone conducts themselves in their private life isn’t relevant to how they conduct themselves in public office.” 

Exclusive: Harrogate MP aide and councillor at centre of £1 million Porsche investigation

The Stray Ferret can reveal that a councillor in the Harrogate district and case worker for Andrew Jones MP is at the centre of a police investigation into missing Porsches where victims lost out on a total of more than £1 million.

Gmund Cars Ltd, which was based at the Nidd Valley Business Park, has since gone into dissolution. Andrew Mearns was the owner. Conservative Cllr Samantha Mearns had “significant control” which she gave up in December 2018.

The company started in 2006 and built up a strong reputation as a place which bought and sold classic Porsche cars. The six alleged victims the Stray Ferret spoke to said it started to unravel in 2018.

Andrew Jones MP endorsed the shop as an “amazing business” on December 1, 2018 at the time when Gmund Cars Ltd allegedly started to transfer ownership of cars without the owners’ permission. There is no suggestion that Andrew Jones MP was aware of the allegations when the above picture was taken. Mrs Mearns remains as his case officer.

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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.

North Yorkshire Police is investigating the allegations and arrested a man in his fifties in July last year. He has not been charged and the force released him under investigation.

The Stray Ferret has spoken to six alleged Gmund Cars Ltd victims. Some said they lost out on medical treatment, time away from work to see terminally ill parents or their entire pension pot as a result of not receiving money from the sale of their cars.

Six alleged Gmund Cars Ltd victims speak out

Matt Saphier believes that he is the earliest victim. He took his Porsche 911 valued at more than £80,000 to Gmund Cars Ltd back in May 2017.

After many months of waiting, Mr Saphier received a DVLA notice to say that his car had changed ownership in November 2018. He claims he did not give permission for the sale and Gmund Cars Ltd never sent him the money. Mrs Mearns still held her position of “significant control” in the company in that period.

Anthony Place also claims he lost out on more than £52,000. He took his Porsche 924 Carrera GT to Gmund Cars in August 2018 to be sold on a ‘Sale Or Return’ basis.

Anthony Place’s simple message: Where’s my money?

The DVLA sent Mr Place a notice in March 2019 to say his car had changed ownership but he also never received any money from the sale. After a couple months of pestering Mr Place lost his patience.

Mr Place decided to head down to Gmund Cars Ltd for an open day where more than 200 people were in attendance. He printed t-shirts, painted on the side of one of his other cars and even paid for a plane to carry a banner. The message was simple: “Where’s my £52,495 Gmund?”

He told the Stray Ferret:

“I personally feel quite battered and bruised by this. I may be able to bounce back from this loss and some of the other victims were left devastated. This car sale was supposed to fund my time off work. My plan was to go part time so I could spend some time with my terminally ill parents.”

All alleged six victims were critical of the police’s handling of the case and urged the force not to drop its investigation.

The Stray Ferret has approached both Samantha Mearns and Andrew Jones MP for a comment. Andrew Jones MP did not reply by the time of publication.

Samantha Mearns told the Stray Ferret:

“I was a shareholder in my husband’s business until December 2018.  When the business was put into administration in June 2019, allegations were made which resulted in a police investigation.  As far as I am aware the investigation has concluded with no further action being taken.  I was never interviewed in relation to any of the allegations.”