Mar 15 2011

http://www.chroniclelive.co.uk/north-east-news/evening-chronicle-news/2011/03/15/sayers-pals-cleared-over-laundering-probe-72703-28338033/

KEY figures linked to Tyneside hardman John Henry Sayers walked from court after money laundering allegations against them collapsed.

They were alleged to be at the centre of a cash conspiracy, but that case crashed and they faced lesser charges.

Among them were Anthony Leach, who claimed undeclared earnings of £100,000 came from cash-in-hand jobs and gifts.

His income was such he was able to buy luxury cars including Mercedes and Range Rovers with a personal number plate.

But with prosecutors unable to prove the money was dirty, they had to accept Leach’s explanation.

Newcastle Crown Court heard Leach, cleared of the murder of Freddie Knights in 2002 along with Sayers, paid up to £102,795 into the account of his partner Paula Rowe, who had also taken out finance on a number of luxury cars despite apparently being hard up.

Between 2003 and 2007, finance had been arranged on a VW Touareg worth £53,000, a £45,000 Mercedes motor caravan, a Mercedes SL500 convertible, a Range Rover worth £53,000 and a Range Rover worth £59,000.

Peter Gair, prosecuting, said: “The Range Rover was quite distinctive in view of the number plate. Leach was interviewed by police, who suspected the money had come by him.

“He accepted they were his vehicles, he didn’t have a bank account in his name so he put it through his partner’s.”

Police, who thought they were investigating a money laundering racket, originally charged them with that, but were unable to prove the cash had come from underworld activities.

In those circumstances prosecutors accepted Leach’s explanation about the source of the money.

Mr Gair said: “He said he was working self-employed for cash-in-hand. He said he had got some gifts from friends and family as a result of his past history, that is how he says he was able to run luxury cars.

“He accepts he did not declare the cash-in-hand work to revenue and customs. He is completely off the radar as far as they are concerned.”

The court heard he had evaded £13,685 in income tax, £5,604 in national insurance, plus £2,500 interest, the total being £21,806.

Mark Rowe, cleared of a jury nobbling plot alongside Sayers and Stephen Sayers in relation to the Mr Knights murder, admitted tax evasion.

Rowe had put £12,000 into The Turbinia pub on the Fossway, Byker, which his dad and co-accused, James Rowe, was the sole director of through parent company City Inns and Leisure Ltd.

Mark Rowe, involved in the management of the pub, accepted the £12,000 he put into it reflected undeclared income which he had not paid tax on.

Mr Gair said: “The financial records of City Inns was found to be hopelessly inadequate, they did not reflect incomings and outgoings.

“There was a bank account but it was found by a forensic accountant to be inadequate.

“It did show there was clear evidence that some money appeared to have been introduced at that pub by this defendant and he accepts that money reflected undeclared income by him, meaning he evaded £3,390 of tax.”