TWO families who turned to a consultant for help over their endowment mortgages had to call in police before getting their compensation, a court has heard.

Both couples saw an advert in their local press for Austin Hamilton Associates about endowment mortgage compensation and contacted the firm.

Consequently both dealt with Blackburn man Christian Obasi, who was the only person working for the firm, and he agreed to take on their cases, said Michael Morley, prosecuting.

One couple were entitled to £3,000 less his commission of £590 but despite Obasi telling them in January 2006 that they would have the money within 21 days nothing happened.

In April they received a letter purporting to be from the company secretary saying she no longer held that position and that Obasi had been in hospital for a long time. He later admitted to police that he had written that letter.

"He had obtained their money and simply did not hand it over," claimed Mr Morley.

The other couple were entitled to just over £21,000 compensation, less Obasi's commission of £4,200, and almost £20,000 surrender value of their policy.

Their building society handed over the money to Obasi in March 2006 and three weeks later the couple received the surrender money but the compensation never arrived.

The firm was initially based in Stockport but latterly in Tottington, Bury, Liverpool Crown Court heard.

Both couples contacted the police and he was arrested in August 2006.

Obasi, 40, of Mandela Court, Wimberley Street, Blackburn, denies two offences of theft.

(proceeding)