A CARE home matron and her staff posed as CIA agents to scare a paranoid resident in a campaign of vicious practical jokes, a hearing was told yesterday.

Maureen Sheikh, 58, also formed a mock jazz band with staff and banged pots and pans to upset a mentally-ill man who was distressed by noise, the Nursing and Midwifery Council (NMC) heard.

Ms Sheikh, who was the matron in charge of St Mary's Nursing Home in Church Chare, Chester-le-Street, for 11 years, was sacked in September for gross misconduct.

The hearing in London heard allegations that:

* She told an elderly woman with an imaginary boyfriend that a fellow resident was having an affair with him;

* An elderly resident was tormented until she threw water at staff;

* Staff who reported incidents of malpractice had to wear a badge with the word "grass" on it.

Ms Sheikh has denied the allegations. She claims the complaints were made up because she was at loggerheads with the home's owners over costs.

Hannah Capgras, for the NMC, claimed the matron had encouraged staff to participate in a bullying campaign for fun.

She was giving evidence at a hearing to decide if Ms Sheikh should be suspended pending a full investigation.

"These are serious allegations of psychological harm over a long period of time," she said.

One of the residents, referred to as Resident A, suffered from paranoia and became a target for Ms Sheikh, Ms Capgras alleged.

"He believed he was being followed by the CIA. The registrant organised staff to dress up as members of the CIA, and thought it was funny when he reacted in a distressed state."

One of the members of staff, who sent written evidence to the panel, said Ms Sheikh had run around outside the resident's window at night "making noises".

Another resident, referred to as Resident D, became agitated and abusive when noise disturbed him, Ms Capgras said.

During the broadcast of the Britain's Got Talent television show last summer, Ms Sheikh and her staff decided to form what they referred to as a "jazz band" to torment him.

Ms Capgras said: "She and fellow members of staff made makeshift instruments of pots and pans. Noise triggered both verbal and physical agitation from Resident D, and the registrant and the staff were aware of this."

There was an announcement on the home's Tanoy system that the "jazz band" would be playing, and the staff went through the home and up to Resident D's room, said Ms Capgras.

"They noisily played their jazz band through the dining room where it was causing him to be agitated, abusive and aggressive.

"They sent the jazz band to the office and proceeded to make a terrible noise. They went up to the first floor and played outside his bedroom and inside his bedroom," she said.

Ms Sheikh also bullied two more residents, Ms Capgras alleged.

Resident B, an elderly woman with mental and physical disabilities, was a target because she believed she had an imaginary boyfriend, the panel was told.

"The registrant would tell her a fellow service user was having an affair with him, to antagonise both of them," Ms Capgras said. The last alleged victim, Resident C, also had mental health problems and would throw water on staff when she became agitated. Ms Sheikh would often "wind her up" until this happened for her own amusement, it was claimed.

In addition to abusing residents, Ms Sheikh is also said to have bullied staff members and discouraged whistleblowing - the procedure through which staff report abuse.

"Staff felt intimidated by her and felt they couldn't report incidents of malpractice," said Ms Capgras.

"On the occasions when they did, the registrant would make badges saying grass' on them, and staff would wear them." After the "jazz band" incident, a staff member wrote anonymously to the home's owners, complaining about Ms Sheikh.

The managers interviewed all the staff and suspended Ms Sheikh on August 13.

A disciplinary hearing was scheduled for September 5, but Ms Sheikh claimed she was too ill to attend.

It was postponed until September 20, but Ms Sheikh again failed to turn up, claiming she was suffering from stress. She was dismissed in her absence for gross misconduct.

Ms Sheikh, a mother-of-two whose husband is a doctor, told the panel that the allegations were fabricated.

Defence lawyer Catherine Ewins said Ms Sheikh was the victim of bullying from the home's owners, who wanted her out because of rows about the home's costs.

"She continued in her quiet way, despite the bullying, because she loved the home and the work," said Ms Ewins.

"She enjoyed it and did not wish to give way to this bullying." Ms Sheikh admitted there had been a "jazz band", but said she was the victim of a misunderstanding - saying it was an impromptu "bit of fun" that most of the residents enjoyed.

She said they had not played in Resident D's room, and they had stopped when he came out and shouted at them. She said: "It was after the TV programme. I didn't stop to think the gentleman concerned was present.

"When we realised, we stopped. The other residents enjoyed it and were clapping." After hearing the evidence, the panel decided an immediate suspension was not necessary.

Ms Sheikh will now be free to work as a nurse while the NMC investigates her case. She will face a full hearing on a date to be fixed.