A TWICE convicted fraudster whose failing business venture crushed the dreams of budding fashion entrepreneurs has been made subject of a prohibitive court order aimed at curtailing his criminal activities.

The five-year Serious Crime Prevention Order (SCPO) imposed on Mike Smallman will come into force once he is released on licence from a five-year jail sentence he was handed earlier this year.

It means Smallman, who is already banned from holding directorships, must notify police of any business interests within 24 hours and is restricted from direct or indirect involvement with any company.

He also has to tell police should he open a personal or business bank account or take out a credit card and he cannot have more than one of each of these at any one time.

Only a relatively small number of SCPOs are granted by the courts each year and they are often used in cases involving serious organised crime.

Smallman was convicted in July this year of fraudulently operating Newton Aycliffe-based APM Clothing Developments and admitted to a 40-year-old gambling addiction which police said was the reason for his criminality.

The order now means he is prevented from using casinos, including virtual ones online, with Smallman previously running up a £60,000 debt to Ladbrokes by virtue of such gambling.

The 53-year-old, latterly of Richmond, North Yorkshire, also has to inform police within seven days if he uses pawnbrokers to sell, buy, trade or exchange goods.

Smallman, who operated APM as a so-called ‘sole trader’ and was also convicted of using his ex-girlfriend’s identity to take out payday loans, will also be prevented from accessing or controlling third-party bank accounts in someone else’s name.

He appeared at Teesside Crown Court via a video link to Stockton’s Holme House, where he is serving his sentence.

More than £100,000 was fraudulently taken from customers of APM who paid upfront for clothing items ranging from rugby jerseys to maternity wear only to find their orders were not completed and their money had gone.

Smallman had previously been convicted and jailed in 2008 for a fraud involving the former National Distance Learning College, in Middlesbrough.

Detective Sergeant Jonathan Rowland, of North Yorkshire Police’s economic crime unit, said: “The purpose of the order is to protect the public from Mike Smallman and hopefully disrupt his pattern of offending.

“Smallman is a serial criminal and North Yorkshire Police along with the Crown Prosecution Service have sought this Serious Crime Prevention Order in order to put certain conditions and controls on him.

“This is the first time the economic crime unit has applied for such an order, but we will seek to use such powers again in the future to prevent others from falling victim to fraud.”