A TEENAGER has admitted a £96,000 eBay scam after advertising electrical items for sale that did not exist.

The hearing at Burnley Crown Court was told that Shofik Ali, 19, had started by selling customers cheap items on the internet auction site, and then began advertising high-value goods when he had built up a good reputation.

The expensive items were never delivered, the court heard.

Ali, of Wells Street, Haslingden, admitted conspiracy to defraud between September 2007 and May 2008 and transferring criminal property in May last year.

He was bailed and is due to be sentenced next month.

Jeremy Grout-Smith, prosecuting, said Ali was responsible for a “break out” fraud.

He had set up an eBay account in December 2007, using his name and address and date of birth, together with the business name Vision Sound Express and a Hotmail web address.

The fraud began with fairly low- value transactions, such as mobile phone SIM cards, Play-Station games and clothing, and Ali was established as a power seller which meant buyers could have a significant degree of trust in him.

Mr Grout-Smith said Ali then began to refuse payment through PayPal and made excuses. He got buyers to pay directly into a bank account in his name, opened by him in the latter part of 2007.

More than 30 customers bought goods which were never sent out.

They had ordered high-value goods, such as electrical items and cameras, costing up to as much as £3,700.

The prosecutor said the fraud was planned, as there was evidence that in March 2008 a company called Fruition was engaged to do a web page for Vision Sound Express for £960 and the transaction was signed by Ali and paid for from his account.

Mr Grout-Smith said customers handed over a total of £95,940 into three accounts held by Ali and apparently set up by him for the purpose.

Of that, £75,782 was withdrawn and a further £5,000 was taken out in cash.