THOUSANDS of pounds of investors' money was used for personal expenditure by a couple involved in a hotel business.

Durham Crown Court was told Anthony and Jean Mattimoe ploughed hundreds of thousands of pounds into the upkeep of the Park Head Hotel, at New Coundon, near Bishop Auckland, which ultimately folded with debts of more than £2m, in September 1996.

Peter Johnson, prosecuting, said money "was finding its way from friendly investors" into the accounts of the Mattimoes and was used to help pay their own debts.

Anthony Mattimoe, 60, previously admitted fraudulent trading, with intent to defraud, between January 1993 and November 1996, and two counts of false accounting, between March and June 1996, charges stemming from the running of the Park Head Hotel.

He also admitted forgery and using a false instrument, relating to a Bishop Auckland taxi business he was involved in, during 1998.

Jean Mattimoe, 58, previously pleaded guilty to four charges of failing to keep proper accounting records while she co-ran the Park Head Hotel.

But after the prosecution outline, yesterday, Simon Stafford-Michael, for Anthony Mattimoe, made submissions which resulted in the hearing being further delayed.

Judge Denis Orde adjourned sentence to a hearing in several weeks, on a date yet to be confirmed, and granted further bail to the Mattimoes, of New South View, Windlestone, near Chilton, County Durham.