LAWYERS who were criticised by a judge for wasting public money with a "foolish" prosecution last night hit back at the stinging accusation.

They also revealed they were considering an appeal against the judge's decision to order them to pay defence costs in the case.

Judge David Bryant accused the Crown Prosecution Service of "bizarre folly" in using new legislation to take to court a woman who said she found a PlayStation 2 in rubbish bags.

Rather than charge Paula Clixby with theft by finding or handling stolen goods, prosecutors charged her under the Proceeds of Crime Act with acquiring criminal property.

Judge Bryant kicked out the case and said the legislation -designed to combat drug-dealing and money-laundering -had been used for "grotesquely inappropriate purposes".

Last night, Steven Orange, of the Crown Presecution Service in Durham, said: "We believe that the charge was appropriate.

"The term money-laundering can be misleading. The Proceeds of Crime Act 2002 deals with criminal property, not just money.

"This defendant was charged under section 329 of the Act, with having possession of criminal property knowing or suspecting it to be stolen property. The charge of handling stolen goods would have required the prosecution to prove that a person knew or believed property to be stolen.

"There is a clear difference between proving that someone knew something to be true, rather than just suspecting it.

"A report in 2004 by HM Inspector of Constabulary and HM CPS Inspectorate called Payback Time pointed out that the offence of money-laundering is far easier to prove than handling of stolen goods, and the successful uses in other cases fully supported this assertion, and that there was significant scope for the wider application of this Proceeds of Crime Act power."

The Northern Echo reported yesterday how Judge Bryant launched a withering attack on prosecutors and ordered them to pay Miss Clixby's £800 court costs after he threw out the case.

Miss Clixby, 29, of Station Road, Darlington, was formally found not guilty.

Last week, a judge said she was flabbergasted that lawyers wasted public money prosecuting a rugby player who bruised a rival's head during a game.