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Tuesday, July 15, 2008, 11:02
The 47-year-old dad from Newton Abbot appeared before Plymouth Crown Court yesterday charged with three counts of fraud relating to the sale of Ferrari cars.
At an earlier hearing Reece, who was the company director and owner of Grand Prix Motorcycles UK Ltd in Queen Street, pleaded guilty to two counts of obtaining money transfer by deception and one of obtaining property by deception, namely a Ferrari 360 F1 Modena sports car.
The court was told Reece acted as a broker, setting up deals to deliver new models of Ferraris, which never materialised.
As a broker, Reece would take a £5,000 deposit and promise to deliver the cars years before they became more widely available on the open market.
But the court heard how Reece took his clients' money and 'fabricated' scenarios involving German gangsters, threats and manufacturing troubles when they pressed him for the delivery of their car.
Prosecuting Piers Norsworthy said the first deception, amounting to £107,000, related to a deal in 2000 with DK Engineering, a family-run business near Watford dealing with 'high end' cars, which is internationally recognised.
The firm had successfully bought a car from Reece on a previous occasion.
The second deception related to a deal with Anthony Smirk, a Plymouth businessman, who was buying the car on behalf of a friend.
Reece sold the friend a Ferrari 360 for about £85,000. He then persuaded him to buy the newer soft top model, or Spyder, in a part exchange in 2001.
Mr Smirk and his friend travelled to Bristol where they delivered the car, believing Reece already had a buyer lined up and that the newer model would be forthcoming.
Mr Norsworthy said: “Mr Reece told them there were production problems with the cars at Ferrari which was initially accepted by Mr Smirk. He then asked for the final payment of £35,000 which was the difference between the two cars.
“This money went from Mr Atkinson's account into Mr Reece's. But in interview Mr Reece claimed he had not received the money. This was a blatant lie.”
The court heard how the impact of Reece's deals was financial and had affected DK Engineering's reputation. They had lost out on about £1million of business a year because they had let down their Japanese client as a consequence of their dealings with Reece, the court heard.
In mitigation, Tim Bradbury said Reece was previously of a good character and he had two children aged six and two.
He said: “He pleaded guilty at the very first opportunity. He is not a fraudster who sets out in business then fleeces his customers. This situation is the other end of the scale.
“Here we have an individual who messed customers around in relation to these two incidents. But throughout it was his intention that they would be provided with the vehicles.
“He fully acknowledges he told untruths about the money and why he could not supply the vehicles. He had people banging at his door and some unpleasant visitors from individuals where he had been subject to threats.”
Mr Bradbury said Reece had continued to trade in motor bike parts and had cleared £358,000 of debt rather than declare himself bankrupt.
Judge Ian Leeming QC said: “The company was in difficulty and a lot of lies were told. He got this money by fraud. I don't see that there was a realistic basis for expecting the delivery of the cars to be met.
“I am sympathetic. You have two young children and I have considered the references which have been handed to me. But commercial fraud on this scale does require a custodial sentence.”
Judge Leeming sentenced Reece to 14 months imprisonment for each charge. The sentences will run concurrently.
Financial matters were adjourned until October 31 when compensation, defence costs and general costs will be decided. It is expected that Reece's assets could be seized to pay to cover the costs.
Speaking after the hearing, case officer DC Lee Western told the Herald Express: “It is a fair sentence and a well considered judgement which adequately reflects the criminality of Mark Reece. It has been a long and complex investigation and I am pleased with the outcome.
“I am not aware that the vehicles ever existed and have never seen any evidence of their existence.”
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