Fraudulent charity collectors who made more than £600,000 selling donated clothes have been shut down by the High Court.

Helping Arms Ltd and Rogaile Ltd, operating jointly as ‘Helping Arms’, collected clothes they claimed would be given away in Eastern European and African countries.

But the businesses, based in Heritage Avenue, Colindale, were in fact selling the donations and accumulated profits of £645,000 in 14 months until December 2011.

Leaflets and collection bags were delivered in areas across north London, including in Barnet, before investigators stepped in.

A prosecution led by the company investigations unit of the Insolvency Service ended in the two companies being shut down in the High Court on October 17.

The court found the companies’ activities were misleading and in breach of regulations contained in the House to House Collections Act 1939, which regulates door to door leaflet dropping for charitable purposes.

The act requires companies conducting collections for charity to obtain a licence, which none of the companies had done.

Investigators also found the companies failed to keep records of their stock and there was a lack of transparency regarding the ownership of the businesses.

The Insolvency Service is now assessing the assets of the company to look at possible recuperation of the cash.

Investigation supervisor David Hill said: “Con artists like these who abuse the public’s good intentions towards charitable causes are a scourge on society and should be punished.

“The sole aim of the companies appeared to be a means of enriching those in charge.”