THE son of magician Paul Daniels yesterday appeared in court accused of cheating the hospital trust he worked for out of thousands of pounds in a “sophisticated” fraud.

Gary Daniels is alleged to have commissioned “entirely unnecessary”

work from another company, but said he would carry it out himself as a sub-contractor, and claimed for it.

He is said to have signed off invoices when submitted by the firm, and then billed the unsuspecting company and had the money paid into his bank account.

Mr Daniels, 40, appeared before magistrates yesterday to face two charges under the Theft Act 1968, and one contrary to the Fraud Act 2006. No pleas were entered.

The case will return to Teesside Magistrates’ Court on June 10 so that it can be sent to crown court.

Mr Daniels worked for the South Tees Hospitals NHS Trust as an IT support manager, and was allowed to submit requisitions for projects up to £5,000.

Magistrates heard he is alleged to have sought quotes for work, then offered to do the jobs himself as a sub-contractor when the company did not have available staff.

It is alleged he then received an invoice from the software development firm, signed it off to be paid, and later submitted his own invoice to the company.

Magistrates were told that invoices wrongly paid to the company, Stockton-based Icarus Solutions, amounted to £12,455, while Mr Daniels received £10,057 from them. When the alleged frauds came to light, Mr Daniels was arrested at his home near Stockton, on suspicion of conspiracy to defraud and obtaining money transfers by deception.

A director of Icarus was initially arrested but it became clear the company was not involved in any wrong-doing, said Sarah Price, prosecuting.

The director said Mr Daniels approached his company to carry out work on computer systems and switchboards at hospitals, and told him he would do the jobs himself on their behalf.

It is claimed invoices were then submitted to the hospital trust, Mr Daniels would sign for them to be paid and then send his bill to Icarus, which would pay him.

The court heard Mr Daniels, of Chaldron Way, Eaglescliffe, is of previous good character. He was granted unconditional bail.

One of the jobs Mr Daniels – no longer employed by the trust – is alleged to have instigated was for a switchboard upgrade at the Friarage Hospital, in Northallerton, in 2006 and for improved computer links between the Friarage and Middlesbrough’s The James Cook University Hospital.