A NORTH-EAST policeman may lose his job after he admitted dealing in counterfeit goods.

PC John Wragg, who works for Cleveland Police and is based in Hartlepool, appeared at Teesside Crown Court yesterday.

The 34-year-old officer pleaded guilty to three specimen charges of dealing in counterfeit DVDs, including Lord of the Rings: The Two Towers.

He admitted not having permission from film-makers Sony Corporation, Columbia Pictures and New Line Cinema Corporation to offer the blockbusting movie for sale.

The case was brought to court by North Yorkshire Trading Standards, which investigated newspaper advertisements and an Internet site selling the DVDs.

Wragg has been suspended from Cleveland Police and will now face a misconduct hearing. His barrister, Richard Adams, said the officer could lose his position on the force.

He said: "He is still suspended. He is a serving police officer. The penalty would be the loss of his job."

The case was listed for trial yesterday, but Wragg pleaded guilty following discussions with his barrister.

He was due to stand trial alongside his wife, Nicola, 31, but prosecution barrister Richard Bennett said the matters against her would be left on file in light of her husband's guilty pleas.

The court heard that bank account details showed £34,400 had been paid over the Internet.

Judge Les Spittle told Wragg, of Newton Aycliffe, County Durham: "You will be on bail without conditions.

"I am not giving you at this stage any indication of sentence."

A spokesman for Cleveland Police said after the case: "He has been suspended for some considerable time and as a result of his guilty pleas will now face misconduct issues.

"He remains suspended."

The case was adjourned until December 21 for a sentencing and proceeds of crime hearing.