A husband and wife appeared in court yesterday accused of conspiring to defraud the Prudential Assurance Company.

Michael Melton, 58, and his wife, Susan, 44, of Front Street, Staindrop, near Barnard Castle, County Durham, did not enter a plea during the appearance at London's Southwark Crown Court.

They were bailed to return to the court on June 17.

Mr and Mrs Melton are both facing two identical fraud charges.

The first alleges that on or before September 26, 2001, they conspired to defraud the Prudential Assurance Company while trading as New Business Solutions Limited.

The second is identical except for the company, which in this instance was Labligistical Services Limited.

Mrs Melton faces a third charge that on or before September 26, 2001, she conspired with others to corruptly give and accept payments involving Colin Glossop and his company FFWD/AREA51.

It is alleged such gifts and payments were made as an inducement to her and co-accused Mark Glynn to show favour to Mr Glossop and his company when she and Mr Glynn were doing acts in relation to her principal Prudential Assurance affairs.

Mr Glynn, 41, of Lewknor, Oxford, faces the same three charges as Mrs Melton. No address was available for Mr Glossop.

Mrs Melton is a former director of Prudential Assurance, but left her job last year when she moved with her husband from their home in Berkshire to run the Country Tea Shop, in Staindrop.

Mr Melton also runs the Bay Horse pub, in Hurworth, near Darlington, with his son, Kevin.