A property firm boss who owned Inspector Morse's famous red Jaguar MkII has appeared in court accused of perpetrating a multi-million pound fraud.

John Potts and four other directors of the now wound-up Practical Property Portfolio business appeared before Newcastle magistrates yesterday.

The men face a fraud conspiracy charge following a four-year investigation.

They were linked to an alleged international property investment scam that left hundreds of investors out of pocket.

It was claimed investors from the UK and abroad paid money into the firm, which bought houses and flats in mainly run-down areas, had them refurbished, and then found tenants for the owners.

But clients reportedly found the buildings, many in Newcastle's East and West End, Gateshead and Sunderland, had not been renovated, were derelict and, in some cases, were burnt-out.

However, the massive growth of the PPP operation, based at Gateshead's Team Valley Trading estate, is said to have led to money pouring in from around the world.

Yesterday, four of the five appeared before magistrates for the first time. A fifth will appear in court next month.

The men are Peter Frank Gosling, 56, of Rothbury Gardens, Lobley Hill, Gateshead; John Potts, 59, of Villa Maria, Silksworth Hall Drive, Sunderland; Peter Graham, 61, of Topcliff, Sunderland, and Natalie Laverick, 26, of South Otteringham, North Yorkshire.

Co-accused Eric Armstrong, 54, of Moorside North, Fenham, Newcastle, was also summonsed and will appear in court next month.

Police and the Serious Fraud Office (SFO) launched an investigation in March 2003.

PPP and associated companies were closed by the former Department for Trade and Industry after High Court petitions in Leeds.

Mr Potts was an investor in a leading horse-racing syndicate and also bought Inspector Morse's TV car at auction for £53,000.

The SFO is an independent Government department that investigates and prosecutes serious or complex fraud.