Designer clothing company Ted Baker helped uncover a counterfeit clothing scam being run in Leicester.

The multi-million-pound fashion chain sent an inspector to the city after it suspected that a factory was churning out cheap clothes and passing them off as genuine designer wear.

Posing as a prospective client, the inspector visited the premises of S.G.H.T, in North Evington – and landed a supply deal which uncovered vital evidence.

Yesterday, the firm's boss Sukhvinder Singh Gill was jailed for two years and nine months after admitting 16 false trademark offences and a further 16 offences on behalf of his company.

Leicester Crown Court was told that when Gill, of Oakes Way, Oadby, came out of jail in the 1990s he set up S.G.H.T. Ltd as a legitimate garment business – but later turned to dishonesty to keep the company afloat.

Following the investigation by Ted Baker, Leicester City Council's trading standards officers raided the factory unit at Temple Building, Temple Road, North Evington, and seized 3,000 counterfeit garments.

The clothes bore top brand names which included Armani, Fred Perry, Playboy, Timberland, Boss, Lacoste and Elle.

The trading standards officers also found 6,000 bogus designer labels, on March 12, 2007.

Barry Berlin, prosecuting, said: "They were copied and deliberately designed to deceive the public.

"He was manufacturing thousands of counterfeit garments.

"They weren't made to be sold out of the back of cars or on market stalls, they were to be sold in shops."

Consignments were destined for delivery to Manchester wholesalers.

The court heard that after logos were printed by a sub-contractor they were returned for labelling, including false bar codes.

Seven employees were working on the fake garments when the raid took place.

Mr Berlin said the genuine retail value of the seized items was in excess of £60,000.

Balbir Singh, defending, said that Gill (53), a father of three, disputed the items were destined for high street shops and claimed they were of poor quality meant for market stalls.

He said: "Loyal customers of these brands would never have been fooled."

The court heard that Gill sold T-shirts for £2 wholesale, making a 25p profit, after overheads.

The garments seized would have made him about £6,000.

Mr Singh said: "He did it to keep his loyal employees in work.

"In the last couple of years prior to his release (from prison) he was allowed to visit many temples as a visiting preacher – and some good must have been thought of him to allow him into the temple."

The court heard Gill is now president of a welfare trust in India, helping resolve problems with arranged marriages.

Numerous letters of support to the court were from a former MP, a Lord Mayor, leaders of temples, neighbours and doctors.

Gill's company formed in 1996 but ran into financial trouble five years ago and ceased trading at the end of 2007.

Mr Singh said: "He deserves substantial credit for the way he turned his life around after his release from that substantial sentence."

Gill, who suffers from back problems and depression, is now receiving incapacity benefit and his wife works in a call centre.

Passing sentence, Judge David Price said: "This was a sophisticated criminal enterprise.

"Counterfeit goods is big business and it's a serious contemporary problem which has an economic effect on many other countries."

Afterwards, Ronald Ruddock, trading standards manager, said: "We hope it will deter others.

"If we detect it they will be brought to court."