A BUSINESSMAN accused of using customers’ cash to prop up his ailing venture had no better luck at the bookies, losing £10,000 in one month.

Analysis of Mike Smallman’s betting habits showed that in five years he had an account open with bookmakers Ladbrokes he deposited £113,055 and withdrew £52,690 from it.

Gary Smith, a money laundering rooting officer for the firm, told Mr Smallman’s trial at Teesside Crown Court that this meant the company won £60,365 from him.

He also said that out of 63 months, there were just three when the 52-year-old was in profit with the bookmaker.

Mr Smith said the businessman - who has past convictions for fraud - liked to bet on horses and greyhounds and also played ‘Deal or No Deal’ online while he had his account from August 2008 until his arrest in November 2013.

Mr Smallman is accused of ripping off scores of customers who ordered items from APM Clothing Developments, in Newton Aycliffe, to the tune of more than £100,000, to keep it afloat and fund his gambling habit.

The defendant, of Castle Hill, Richmond North Yorkshire, denies fraud as well as several other charges relating to allegations he stole and pawned jewellery from his former Ukrainian girlfriend and took out loans in her name.

Prosecution witness Russell Pearcy said he got in touch with Mr Smallman as he was looking for a manufacturer to produce “Gorilla Grips” – leather training grips used by people lifting weights.

Essex-based Mr Pearcy said Mr Smallman said he could get some samples organised through a factory he worked with in Vietnam.

On June 20 2013 he transferred £1,976 to Mr Smallman – the first of three planned instalments – for a production run of 2,000 items.

But he said he wasn’t happy with samples he received from the firm, describing a second batch as having a “pungent smell” of disinfectant.

Mr Pearcy said: “I just wanted my money back.”

It was then he began asking for a refund, only to later receive an e-mail saying the venture had folded.

Under cross-examination from William Byrne, defending, the witness agreed Mr Smallman had a professional looking website and he had been enthusiastic about the product.

He also agreed he himself was responsible for some of the delays since he began looking at other options for manufacturing the items.

He said that after transferring the cash to Mr Smallman he discovered details of the defendant’s criminal background on the internet, but after a chat he had been reassured and “gave him the benefit of the doubt”.

The trial continues.