A businessman has pleaded guilty at Preston Crown Court to fraudulent trading.
Terry Warrington, of Michaelson Avenue, Morecambe, who set up company Gentry in 1986, pleaded guilty to fraudulent trading before the trial of Wirral man Malcolm Barber began.
The court heard that Malcolm Barber, 70, of Links View, Wallasey, allegedly played a leading role in two companies, Gentry IT and Dublin CF, which were dissolved in 1998.
Bond holders cash was used to loan out to borrowers, but the businesses were not authorised to deal in bonds and loans. Barber denies four charges of fradulent trading. The trial continues.