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In another case, Tawse Snr worked on an 83-year-old woman's roof without her knowledge and demanded PS600 payment when she returned home.
Both men admitted a single charge of conspiracy to defraud, while Tawse Snr also pleaded guilty to a charge of money laundering.
In respect of that charge, the court heard how at one stage Tawse Snr hid PS48,500 in his eight-year-old grandson's bank account.
Now his granddaughter has restarted the business after realising bondage fans love the 20ins Lochgelly tawse.
Margaret said: "There was a whole range of websites selling tawse to bondage enthusiasts and trading on my family's name.