A COUPLE who hit the headlines when they fell victim to an expensive jewellery theft, have been accused of defrauding one of the country's biggest insurance companies.

Susan and Michael Melton reported the theft of nearly £60,000 worth of jewellery from their home in Staindrop, near Barnard Castle, County Durham.

The jewellery included an 18-carat gold diamond and mother-of-pearl Rolex watch said to be one of only two in the world - the other belonging to former Spice Girl Victoria Beckham.

It has now emerged the couple have been separately accused of conspiring to defraud the Prudential Assurance Company and are due to appear at London's Southwark Crown Court.

Mrs Melton, 44, is a former director of Prudential Assurance, but left her job last year when the couple moved from their home in Berkshire to run the Country Tea Shop, in Front Street, Staindrop.

Mr Melton, 58, also jointly runs the Bay Horse pub in Hurworth, near Darlington, with son Kevin.

When contacted by The Northern Echo, Michael Melton said he did not want to comment.

Police who investigated the jewellery theft say they were entirely unaware of a separate inquiry involving the Melton's, which has been conducted by the Metropolitan police fraud squad.

The jewellery theft led to the conviction of decorator Anthony Cormack who was found guilty at Teesside Crown Court earlier this month and was given 200 hours community service.

Cormack, who has maintained his innocence, stuffed the jewellery into a bag of plaster after it fell from a vanity unit in a bedroom where it had been hidden for safe keeping. It was found days later by Michael Melton after Cormack left it behind when he moved on to another job.

Detective Sergeant Sean Jackson, of Bishop Auckland police, said they had received an anonymous tip-off which led them to speak to colleagues in the Metropolitan police.

He said: "Information has come to light since the conviction of Anthony Cormack which we were not aware of beforehand.

"That information has been forwarded to the Crown Prosecution Service."

Det Sgt Jackson said police would not have investigated the jewellery theft any differently had they known of the fraud allegations against the Melton's.

The couple are both facing two identical charges of fraud and will appear at a plea and directions hearing today.

The first charge alleges that on or before September 26, 2001, within the jurisdiction of the Central Criminal Court, with others they conspired to defraud Prudential Assurance by means of a company trading as New Business Solutions Limited used to dishonestly obtain monies from the Prudential Assurance Company. The second charge 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 conspiring together with others to corruptly give and accept payments and gifts in that she agreed the same would be made by Colin Glossop and his company FFWD/AREA51 to both herself and Mark Glynn.

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