FIVE members of a family have been charged following a long-running police investigation into alleged European Union funding fraud.

The five, involved in running two County Durham companies, are accused of siphoning off almost £1m of European funding destined to help unemployed people in disadvantaged communities.

It is alleged that the money was diverted to buy land, houses and finance building work.

A large amount of money is also alleged to have been transferred abroad.

Thomas Farrier, 62, his wife Marie, 58, and daughters Melissa Tunney, 30, and Melanie Farrier, 23, as well as the couple’s son-in-law James Tunney, 32 – all of whom live in villages to the west of Durham City – are due at Consett Magistrates’ Court on May 19 to face charges of conspiracy to launder money.

Mr Farrier and his daughter Melissa, who are both directors of the companies, will each face two additional charges of fraud.

Five men and three women were originally arrested following raids on three houses and three company premises in the Durham City area in December 2007. Paperwork and computers were also seized during the raids, which involved 30 police officers.

The raids followed a longrunning investigation by detectives from Durham Police’s economic crime unit, and examined the companies’ activities since 1998.

The team examined, in particular, the activities of two companies, Development and Research Initiatives Limited and Meteor Enterprises Limited, both registered at offices in the hamlet of Cornsay Colliery, near Durham City.

The two companies were given European grants worth £986,031 to fund initiatives and training courses to help disadvantaged people in the North-East to find work.

The investigation was launched after concerns were raised during a random audit by the Government.

No further action will be taken against three of the eight arrested in the raids.