A feared gangster exchanged “large quantities of black market cash” with a prominent Liverpool property developer, prosecutors claimed today.
Security boss Stephen Clarke, 48, was subjected to further interrogation on his dealings with the businessman, who cannot be named for legal reasons, at an ongoing Proceeds of Crime hearing at Preston Crown Court.
Clarke and his brother Peter Clarke, 37, headed a sprawling criminal network which trafficked cocaine and cannabis to Northern Ireland and Manchester. The pair were jailed for a combined 26 and a half years in 2013.
Now the brothers are locked in a battle over their alleged £2m fortune, which prosecutors claim is “squirrelled away in a murky web of hidden assets” linked to Stephen and Peter, and their respective wives Rachel and Maria Clarke.
Nick Johnson, QC, prosecuting, described detectives observing Clarke handing a bag, containing £50,000 cash, to an employee of the developer.
Clarke earlier claimed the money was a loan to help his friend finance a deal.
Mr Johnson suggested: “(The developer) knew this was all dodgy money, he knew this was all the proceeds of crime didn’t he?”
Clarke conceded: “It was all untaxed money.”
Mr Johnson said: “He is a money launderer isn’t he? He is someone who is prepared to take large quantities of black market cash.”
Clarke replied: “He is a property developer, Mr Johnson.”
He was also grilled by Mr Johnson over a £115,000 worth of payments he received from the developer, declared to HM Revenue & Customs as rental income and paid into to his bank account over three years.
Clarke explained the money was for ensuring his friend’s development sites were not damaged by criminals in the city, and told the court he had a “network” he could use to “speak to people” causing any trouble.
But Mr Johnson said: “The reality of it is this was dodgy money coming to you from (the developer), and you can’t offer any sensible justification for having received it.”
The court also heard evidence about Clarke’s involvement in his brother’s drugs conspiracy.
He told the court he only became involved in the “Green” (cannabis) conspiracy after struggling to recoup two £100,000 loans to convicted drug dealers David Byron and Mark Wyatt.
He said: “I got involved in something I should never have been involved in. I put my wife and kids through that and I will never put them through it again.”
The court also heard evidence from accountant David Fairhurst, who prepared a report on businesses linked to Clarke.
Under questioning from Nigel Power, QC, defending, he said dividends paid to a joint bank account belonging to Stephen and Rachel Clarke, from Clarke’s various security and scaffolding firms, broadly matched earnings he declared as tax.
However Mr Johnson asked about two firms, Safe Scaff One and Stealth Security, which did not send full accounts when asked by Mr Fairhurst.
Mr Fairhurst said Clarke’s solicitors informed him the records for Stealth had been destroyed, while he never received any explanation about Safe Scaff One.
Preston Crown Court
The court also heard from 42-year-old John Dwyer, a contracts manager for Clarke’s most successful security agency, Premier Approved, which is still operating.
Mr Johnson alleged earlier in proceedings that the business, which works by charging a commission for finding other companies work guarding building sites, was “highly suspicious.”
The court heard the business is run by Lyndsey Dally, the wife of Clarke’s business partner Kevin Dally, alongside Clarke’s father William Clarke.
Under questioning from Mr Power, Mr Dwyer said he “found the work” through a network of contacts in the construction industry before deciding which security firm would be most suited to the job.
He said Premier had provided firms for security work on sites including the Royal Liverpool Hospital and schools across Liverpool.
Mr Johnson began cross examining Mr Dwyer on his contacts and he was able to provide a list of names linked to major firms including Redrow homes, Wilmot Dixon, Carillion and Morgan Sindall.
The complex Proceeds of Crime Act hearing is set to continue into February.
Source: http://www.liverpoolecho.co.uk/