A JURY has heard that a businessman accused of importing child pornography from Thailand has served a prison sentence for fraud.

George Steen was jailed almost ten years ago after an investigation by the Serious Fraud Office, Teesside Crown Court was told.

Details of the conviction emerged during an interview with UK Border Agency staff after Mr Steen's latest arrest over two years ago.

Mr Steen, 64, of Greenbank Road, Darlington, was detained when he arrived from Bangkok at Heathrow Airport in July 2010.

A lap-top computer seized contained “a large number” of indecent photos and films – including some allegedly showing children.

Months later, when the businessman's flat was searched, two more computers with similar images were recovered, it is said.

Mr Steen is likely to argue during his trial that the movies and the pictures are legal because they show only people aged over 18.

In his interview with Border Agency investigators, he said his computer had first been seized during the fraud probe a decade ago.

He said the machine had been returned and because he had not been told otherwise, believed the “sexy” images on it were fine.

“I assumed they were okay because they had been inspected,” he said. “If I thought they were obscene, I wouldn't have had them.”

The jury of nine men and three women has been shown the photographs and videos which are said to show children and be illegal.

Prosecutor Paul Mitchell said many of them show the subject either being spanked or caned, or show obvious signs of them having been so.

He told the jury: “You have the sole responsibility of deciding whether those appearing in the images are 'children' according to this definition.”

Mr Steen said the lap-top seized at the airport belonged to his firm, but he admitted that he had access to it most of the time.

He told investigators that his fiancee and another person also used it as well as members of his staff in the Philippines.

He maintained that the website from which they were downloaded claims their models are all over 18 – and he believed the declaration.

Mr Steen denies 14 counts of downloading indecent images, two counts of possessing indecent images and one count of attempting to evade import restrictions.

The trial continues.