A ONE-TIME senior executive in Duncan Bannatyne's business empire has appeared in court charged in connection with an alleged fraud valued at almost £8m.

Christopher Paul Watson, 46, appeared before magistrates in Newton Aycliffe charged with fraud by abuse of position and six further charges relating to the alleged concealment, disguising, conversion, transfer or removal of criminal property.

Wearing a grey suit and purple tie, grey-haired Watson, of Cleveland Avenue, Darlington, spoke only to confirm his name, age and address.

No indication of plea was given during the short hearing.

The fraud by abuse of position charge alleges that Watson dishonestly abused his position with the intention of making a gain for himself of £7,974,221.68.

Of the other charges, Watson is said to have authorised the electronic transfer of funds – hundreds of thousands of pounds in total – from business bank accounts of Bannatyne Fitness, to facilitate the purchase of properties in Oaklands Avenue, Eastbourne Terrace, Victoria Road and Harris Street.

Court papers show Watson is also accused of transferring funds from his employer's account to pay for building work on properties belonging to him, or to a company owned by him.

He is also accused of using the same methods to facilitate the purchase of a restaurant.

The fraud by abuse of position charge runs foul of the Fraud Act 2006, while the other six charges are contrary to the Proceeds of Crime Act 2002.

Prosecutor Joanne Hesse said: "This is a fraud of just short £8m, where the defendant has abused his position.

"While working as a manager in the head office accounts department of Bannatyne Fitness, in Darlington, he has been using large amounts of money in order to gamble and also [for] his own business interests and purchases."

Solicitors for the defendant made no representations.

Court papers describe Mr Watson as a senior accounts manager, but former Dragons' Den star Mr Bannatyne describes him as finance director in one of his books.

Ms Hesse said the case was not suitable for summary trial. Magistrates declined jurisdiction and the case was transferred to Teesside Crown Court.

The next hearing will be at 10am on Wednesday, July 8. Watson was released on unconditional bail until his next appearance.