A SEX parlour boss took a 50 per cent cut from the thousands of pounds in earnings made by his team of prostitutes, a court was told.

John Middleton, a former owner of The Pleasure Zone sex shop, in High Northgate, Darlington, had the women keep a daily diary of how many men they entertained each day.

Middleton, 61, of Barrenthwaite Hall, near Kirkby Stephen, Cumbria, was jailed for a year last April after admitting two offences of living off prostitution, later cut to nine months on appeal.

He is now at the centre of a legal battle in which police are attempting to seize more than £800,000 of his assets.

A confiscation hearing at Teesside Crown Court has already heard how he is alleged to have benefited by £1.76m from the prostitution racket.

Yesterday, police officers who took part in a an undercover operation that led to his arrest gave evidence.

One said a working girl had admitted she could earn up to £1,000 in a good week - half of which was pocketed by Middleton.

The hearing also heard of a planning dispute involving Middleton and Hambleton District Council over a caravan on the A1 near Bedale, North Yorkshire, which he used to advertise his massage and escort business.

Planning enforcement officer Susan Dodson prosecuted Middleton for contravening advertising regulations.

She said she visited the caravan and spoke to a girl called Rebecca, who said it was used to entertain clients most days.

Mrs Dodson said a diary was kept in the caravan detailing visits by customers, who she was told paid £70 for sex.

Middleton's defence team has claimed that rather than profiting from prostitution, he made his money by legitimately wheeling and dealing in the property market.

The hearing continues.