THE ringleaders of a huge pirate DVD ring could be facing prison.

The foursome ran an “organised, sophisticated and profitable” racket flogging hundreds of fake films, music CDs and computer games.

Over more than seven months, investigators watched as the four – with a team of workers – ran two stalls at the market at Walton hospital selling their dodgy goods.

The gang were watched as part of Operation Zealot – a multi-agency investigation into the sale of counterfeit goods.

The initiative led to officers raiding 17 addresses and arrested a total of 31 people in the largest ever raid by the Department of Work and Pensions.

Five manufacturing factories were also uncovered.

Bosses estimated those caught were making a total of up to £500,000 a week from their fake goods.

Seven people who worked at the stalls and were snared in the operation were sentenced at Liverpool Crown Court in July.

They were all spared prison after Judge Graham Morrow, QC, heard they were largely just “workers”.

But now four organisers, all from Kirkby, are before the courts and are due to be sentenced today.

Cathy Williams, Catherine Mitchell, William Dunbabin and Christopher Smith have all admitted conspiracy to defraud between September, 2005, and March, 2006.

All, except Dunbabin, have also admitted fraudulently claiming benefits while they were working at the stall.

Ari Alibhai, prosecuting, told the court Smith, 34, of Hartley Grove, was the mastermind behind the operation.

The BMW-driving ringleader, who pretended he was a taxi driver, was responsible for providing the copying equipment and setting up the copying process.

Mr Alibhai said: “He organised what happened at the stall.

“He was responsible for paying members of staff who were working on his behalf and he was responsible for introducing the copying facility.”

Dunbabin, 38, had control of the music side of the business, and when his home on Redmoor Crescent, was searched, police officers found thousands of music CDs and more than 17,000 songs on his computer.

Dunbabin’s partner Williams, 40, of Mill Lane, has two teenage daughters, but began to work at the stall after starting a relationship with him.

The couple now have a young son together.

The court heard that Mitchell, 55, of Gaywood Green, had originally been working on a charity stall at the market with her husband, but gradually became involved and before long was helping running the stall and taking money.

Andrew Downie, defending her, told how Mitchell was suffering from arthritis, panic attacks and pulmonary disease and was “deeply ashamed” of her actions.