THE sister-in-law of a businesswoman who stole more than £m from a North-East garage told yesterday how she was unknowingly "sucked" into the deception.

Beverley Grimes, 43, denies assisting her husband Edward's sister Mary Blair to obtain the benefit of criminal conduct.

Blair's son-in-law Graham Bartlett, 37, has pleaded not guilty to the same charge.

Blair, 54, of Summerhouse Grove, Darlington, admits stealing about £820,000 from her employers PMB Motors and South Cleveland Garages in Darlington over a five-year period.

Edward Grimes, 48, admits laundering £28,950 and his son Christopher, 25, admits laundering more than £500,000. They are due to be sentenced later.

Mrs Grimes, a nurse and manager of a residential home, told a jury at Teesside Crown Court that when five cheques from PMB, totalling £28,950, were paid into her and her husband's account, she did not suspect anything dishonest was taking place.

The couple paid the cheques in between February 1997 and December 1997, and all but £3,450 was paid back out to Blair.

Mrs Grimes, of Bousfield Crescent, Newton Aycliffe, said her husband told her they were bonuses his sister had been given by PMB, where she worked as financial director.

"When I asked him why she wanted to pay it into our account he just said that it was something to do with tax.

"I thought Mary was a clever businesswoman and she knew what she was doing."

She believed the money left in their account was payment for work Edward had done at Chloe's Bridal Wear, later called Manhattan House - a shop owned by Blair in Darlington.

During cross-examination, Deborah Sherwin, prosecuting, said Mrs Grimes had "been sucked into the dishonesty, turning a blind eye to the fact that you were helping her out with her dishonesty".

"I think she sucked everybody in," replied Mrs Grimes.

Later, Mr Bartlett, husband of Blair's daughter Claire, was asked how three PMB cheques, totalling £17,200, came to be paid into his account between March 1997 and March 1998. All but £1,700 was paid back to Blair.

He said Blair had paid the cheques into his account and he had not questioned it.

Asked if he thought she might have been acting dishonestly, Mr Bartlett, a sales manager, of Chapelhope Close, Darlington, said: "The thought never even crossed my mind."

The case continues.