EIGHTEEN people from across East Lancashire have appeared in court for their part in a money laundering scheme which saw small businesses and individuals across the country conned out of hundreds of thousands of pounds.

Preston Crown Court heard how some businesses had to close and marriages broke up following the scam which saw male callers telephoning unsuspecting victims claiming to be from the High Court and demanding immediate repayment of debt owed for advertising they had supposedly taken out via a company called the Business Directory SEO UK Ltd.

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The court heard that victims were told that unless immediate repayment, often stretching into the thousands of pounds, was made bailiffs would be sent around to collect it. Other forms of intimidation were also used. The calls were made between 2012 and 2013, the court heard.

Elliott Peter Reed, 38, Clitheroe Road, Whalley admitted one count of fraud by false representation in relation to the Business Directory, a company he set up and admitted allowing money to be laundered through. Prosecuting, Jane Dagnall said he had received 15 per cent of the £78,000 that was laundered through his account.

When police searched his computer they found the names of victims and crib sheets detailing what the callers should say to victims.

Reed admitted his role in the scam to police the day before his brother Adam Reed, also of Clitheroe Road, Whalley was due to stand trial for the conspiracy. The prosecution decided not to take the case against him any further but the charge will remain on file.

Thomas Moffett, 32, of Bridge End, in Burnley, also admitted to conspiring to commit fraud by false representation. The court heard that he allowed his company name ‘Moff Communications’, letter heads and bank accounts to be used by the ringleaders of the scam. His victims ranged between aged 53 and 75 and in total £127,000 passed through his bank account.

Marcus Moss, 44, of Vicarage Lane, Wilpshire, admitting to money laundering but said he had no idea of the wider conspiracy, had not made any of the phone calls and had made no money from the scam. In total just over £15,000 passed through his bank account.

The court heard that 50-year-old Nancy Shaw, of Moorfield Avenue in Blackburn had set up a legitimate business called the Business Hub Directory whilst living at her previous address of Rhyl Avenue in the same town. But she allowed that account to be used for money laundering and between November 15, 2012, and December 31, 2012, £31,000 passed through it. Between December 3, 2012, and April 9, 2013, a further £28,000 passed through her personal account. She admitted one count of conspiracy to commit fraud by false representation.

Although prosecutors said Shaw was not one of the ringleaders the court heard she had sent a text to co-defendant Sharyle Connor saying ‘loose lips sink battle ships. Keep it between us and stop telling people’.

Gary Oliphant, 42, of Campbell Street, Blackburn, admitted to money laundering and also allowing his home to be used for the purpose of fraud. He said he was aware of the scam and was present whilst some of the calls had been made. But he said he had not made any himself.

When police raided his home in 2013 they found two mobile phones with Oliphant’s bank card next to it and an iPad which had been used to search for small businesses. In total just over £16,000 passed through his bank account.

Christopher Hayes, 38, of Selkirk Close, Blackburn, admitted to money laundering. In total around £4,800 had passed through his account.

Coleen Turner, 42, of Douglas Place, Blackburn, admitted to laundering just over £4,500.

Reginald Gregory, 53, of Ivinson Road, Darwen, admitted to laundering around £20,000.

Lauren Poland, 27, of Marsh House Lane, Darwen, admitted to laundering just over £5,700 in two transactions.

Michael Middlehurst, 35, of Powell Street, Darwen, admitted to laundering just over £11,000 in numerous transactions.

Kevin McAuley, 35, of Harwood Street, Darwen, laundered £3,050 in two transactions, the court heard.

Anthony Lucas-Brewer, 32, of Cemetery Road, Darwen, admitted to laundering just short of £5,500 although he said he had no knowledge of the wider conspiracy.

Zak Deaffern, 25, of Sough Road, Darwen, admitted to laundering over £7,000 in three transactions.

Joanne Orr, 25, of Tythebarn Street, Darwen, admitted to laundering around £6,000, Samuel Dysart, 22, of Haslingden Road, Burnley, admitted to laundering just over £13,000 in six transactions.

Bryan Baron, 40, of Moorfield Avenue in Blackburn, admitted laundering around £9,000 but said he only made a couple of hundred pounds.

Sharyle Connor, 38, of Fawcett Close, Blackburn, admitted to money laundering but said she had been led in to it by Shaw.

Gary Brown, 42, of Wood Street, Darwen, admitted to laundering around £4,500. All 18 defendants are due to be sentenced today and Judge Christopher Altham said all options were open.