Businessman facing jail over Euro fraud (From Durham Times)

Businessman facing jail over Euro fraud

11:10am Sunday 27th June 2010 in News

A BUSINESSMAN is facing jail and financial ruin after confessing to masterminding a substantial European funding fraud.

The admission by company director Thomas Farrier on Monday led to charges being dropped against four other members of his family.

Farrier’s wife and two daughters sobbed as the 63-year-old pleaded guilty to two charges of fraudulent trading at Teesside Crown Court.

All four were accused, along with the businessman’s son-in-law, of being part of a near-£1m fraud involving two County Durham companies.

Farrier was the director of Development and Research Initiatives Limited and Meteor Enterprises Limited at the time of the offences.

All five were arrested after a long-running investigation by specialist detectives from Durham Constabulary’s economic crime unit.

They were among eight people originally held following a series of raids on houses and company premises in the Durham City area.

The others were released without charge after the swoops in December 2007, and no further action will be taken against them.

No evidence will be offered against Mary Farrier, Melanie Farrier, 24, James Tunney, 33, and Melissa Tunney, 31.

All five were due to start a trial estimated to last up to ten weeks, before Farrier pleaded guilty to two of the charges he faced.

He consoled one of his daughters while Mr Tunney comforted another after the judge warned him that he faced a prison sentence.

Amanda Rippon, prosecuting, told Judge Peter Armstrong the minimum amount he used for his own gain or that of others was £600,000.

Farrier, who lives with his wife, Mary, 58, at Wood View, Cornsay Colliery, was bailed until sentencing on July 16.

Originally, all five were accused of conspiracy to launder money, and Farrier and his daughter Melissa – also a director – faced charges of fraud.

The two companies were said to have been paid a total of £986,031 in grants from the European Social Fund and European Regional Development Fund.

At an earlier hearing, it was said the money was intended to fund a series of initiatives and training courses across the North-East designed to help disadvantaged people find work.

Instead, the cash was alleged to have been used to buy land, houses and finance building work. A large amount of cash was also said to have been transferred abroad.

Farrier pleaded guilty to making false claims about the costs of resources and staffing, and false representations about available match-funding.

Farrier, who hid his face as he left court, also admitted transferring assets from Meteor Enterprises Ltd elsewhere with the intention of defrauding creditors of that company and Development and Research Initiatives Ltd.

Miss Rippon said police would start confiscation proceedings to retrieve the illegally-obtained money at the next hearing.

Adam Kane, for Farrier, said he was a man of professional background with no previous convictions.

At the next hearing, no evidence will be offered against Mrs Farrier, her daughter, Melanie, of Priestburn Close, Esh Winning, or Mr and Mrs Tunney, from Welby Drive, Ushaw Moor.