KEN Graham has already paid out £60,000 in deposits and legal fees, but he is at risk of losing much more.

In 2004, the 50-year-old’s wife, Jacqui, died of cancer.

The following year, he was discussing potential investments for the life insurance policy with financial advisor Andrew Laird when the subject of Cyprus came up.

Mr Graham, from Kirklevington, near Yarm, said he wanted to use the money in a way which benefit their three children and create something they could always associate with their mother.

After being shown a picture of a beautiful detached villa, he eventually agreed to make the investment.

Mr Graham said the advisor never mentioned risks, describing the scheme as fail-safe. He could cover the mortgage by renting the property out out and even sell it back for a profit if he wanted.

In 2009, Mr Graham then received a picture of his villa being built showing it was now semi-detached. He immediately contacted Mr Laird who told him it was not his problem and he should contact the developer, Alpha Panareti.

As the developer had broken the contract by changing the villa, Mr Graham tried to walk away, but was told he couldn’t. It was then that he discovered the developer had already taken much of his mortgage for a property that was due to be completed in September 2009, but is now scheduled to be finished in 2013.

Despite paying a large deposit, Mr Graham still owes around £500,000 on a property he bought for £300,000.

He is now waiting for the Cypriot bank to issue a writ which could mean he loses his family home.

Asked how he now felt about Mr Laird, he said: “I feel as if he has rubbed the death of my wife in my face.

“I want him to know what it’s like to face losing everything.”