WHEN George Reynolds was stopped by police and found to have half a million pounds in the boot of a car, it began a lengthy investigation into his financial affairs, both personal and professional.

The charges, to which Reynolds and Tennick both pleaded not guilty, were described in court as complex but interlinked to the tax fraud.

Among the other charges he was facing was an allegation of evasion of liability by deception.

It was alleged that in June last year, when he owed money to Barclays Bank, he falsely claimed that he would be left with no assets following the demise of Darlington Football Club and the sale of his home.

It was also said he alleged he did not have any property, car or jewellery.

In order to settle the bank's claim against him, Reynolds is also said to have claimed the money would come from a third party and not himself.

The prosecution said this was not the case and, in truth, he was due £1.15m from the sale of his house and from Darlington Football Club, and £400,000 from the sale of property he owned in partnership with Billy Morgan as Just Wood.

Another count on the indictment against Reynolds was money laundering.

It was claimed that, between June and July last year, he transferred £100,000 from his Co-op bank account, knowing he was benefiting from criminal conduct.

The prosecution also alleged that between May and June last year, he acquired, used and possessed criminal property - referring to cash in his bank account.

An allegation of conspiracy to launder money was made against both Reynolds and Tennick. It was alleged they conspired together, between May and June last year, to conceal criminal property, again cash in Reynolds' bank account, knowing it was the result of criminal conduct.

Reynolds faced a separate charge of conspiracy to defraud. It was said that between January 2002 and December 2003, he conspired with unknown others to defraud the Football Stadia Improvement Fund.

The prosecution alleged that he submitted a claim for grant assistance as a director and on behalf of Darlington Football Club, which falsely asserted that contractors working at the George Reynolds arena had been paid in full in accordance with their invoices.

The prosecution, based on the evidence they collected, said Reynolds had never paid the contractors and the claims were "false and invalid".

Count seven of the indictment against Reynolds was a charge of attempted evasion of liability by deception.

It was claimed that, between May and June last year, he had been due to make a payment to J&J Omerod plc, but he dishonestly claimed he had no money and no motor vehicles, and that all his property was in the hands of the administrators.

The prosecution said this was deception, and in fact Reynolds did have assets and/or money in his hands or available to him, including his interest in Just Wood.

Tennick faced a separate charge of money laundering between March and June last year. The prosecution said he entered into arrangements which he knew, or suspected, used criminal property - again, cash in Reynolds' Co-op bank account.

Both Reynolds and Tennick denied the allegations and their lawyers said that to show the £500,000 in the car was tainted money, or had been the proceeds of crime, the prosecution had gone into the accounts and discovered the tax fraud.

They claimed the prosecution was unable to substantiate the money laundering allegations.

This was contested by the prosecution, but they agreed to have the matters left on file because the charges the pair had confessed to were of a more serious nature.

Christopher Knox, prosecuting, said it was not in the public interest to have two further trials, lasting six weeks, covering allegations of a lesser nature.