Jun.10, 2010

A FACTORY worker from Flintshire was yesterday convicted of money laundering.

David Hughes was said to have laundered thousands of pounds, taken in by his wife’s illegal money-lending business.

Hughes, 53, of Chester Road, Flint, denied the money laundering offence.

He said the £50,000 he had in various bank and building society accounts, bonds and ISAS were a result of hard work, frugal living and saving.

But his story was rejected by a Mold Crown Court jury after a 40 minute retirement.

His wife Christine Hughes, 48, of the same address, was due to go on trial this week for running an illegal money lending business in the town for 10 years but she changed her plea to guilty.

A third defendant, Margaret Ann Bennett, 44, of Maes Gwyn, Flint, had already admitted unlicensed money lending between July 2003 and May 2009.

She was previously described as a “gofer” collecting money on behalf of Christine Hughes.

The charges arose following a joint operation between North Wales Police and the all-Wales illegal money lending unit based in Cardiff. They searched the Hughes’ home after keeping them under observation.

The judge, Mr Recorder Andrew Keyser QC, adjourned sentence.

Prosecutor John Philpotts said Mrs Hughes admitted operating an illegal money lending business for 10 years between May 1999 and May 2009.

He said her husband knew perfectly well what his wife was doing and used his various accounts to launder profits she made.

David Hughes was charged with converting criminal property – the cash his wife made – between September 2004 and May 2009.

At the time he was earning about £15,000 a year by working at the John Dale factory.

Their home was owned outright, David Hughes at one stage paid the mortgage for his daughter, a qualified solicitor, and paid money into her savings.

David Hughes also cashed the wages cheque of a man each week.

While there was nothing illegal in that, Mr Philpotts said it was another way of processing the money his wife made.

A search warrant was executed at their home on May 21 last year and Mrs Hughes was arrested.

Concealed in a make-up bag in a fitted cupboard in the bedroom was £7,000 in cash.

David Hughes arrived while the search was going on and Mr Philpotts said he tried to distance himself.

He said they were separated, he only stayed there two days a week and stayed with his sister the rest of the time.

When asked about cash, he said he would not say any more and would not tell police where his sister lived.

An investigation showed he had eight different accounts containing in excess of £50,000, which Mr Philpotts said was inconsistent with his earnings at the factory.

He would transfer large sums to his daughter's account and at that stage there were few withdrawals. But withdrawals started to be made after his wife’s arrest, which the prosecution said was significant.

Until then they had been living on the profits of the illegal money lending business, it was alleged.

David Hughes denied knowing anything about his wife's money lending business and described himself as a “saver” who was careful with his money.

In addition to his wages from the factory, he worked on a casual basis as a painter and decorator for cash, he said.

Questioned by his own barrister Brian Treadwell, he said he was a man of good character who would spend money but only if he needed to do so.

Since his wife's arrest he had moved back into the address in Chester Road and therefore had additional expenses, he said.

Mr Hughes agreed that following his wife's arrest he cashed the wages cheque of a friend, David Bennett, each week because Mr Bennett did not have a bank account.

But he said he did that because he did not think it was right that Mr Bennett should pay £20 a week to a shop in town to do so.

Mr Hughes said had done it for free, using cash which he had following the repayment of a loan by his wife's aunt some five years earlier.

At one stage he had also been advised by a solicitor to keep cash to hide assets during his divorce, he said.

He and his wife paid £500 a month at one stage for their daughter's mortgage but she had since moved back to Chester Road.

Mr Hughes told the jury he did enjoy an annual holiday and agreed with Mr Philpotts that he and his wife spent a month in Lanzarote and that their daughter had joined them, at a cost of £4,000.

He said he put money into his daughter’s savings account as a good father, to be used either as a deposit on the house or to pay for a future wedding.

Witness David Bennett confirmed that he would borrow money from Christine Hughes to help finance his gambling habit.

At one stage he would pay her his £220 wages for the week and then borrow anything between £120 and £200 for the following week.

That came to an end when Mr Hughes started cashing his wages cheque for him, he said.

Mr Treadwell described his client as a hard-working man and called 11 defence witnesses from the factory where he worked or who knew him through the local British Legion Club.

They gave evidence about painting and decorating work he had done for them or where they understood he had been living in recent years.