A businesswoman who stole hundreds of thousands of pounds from a North-East garage company has no memory of her crimes, a court heard yesterday.

Mary Blair, 54, has admitted stealing £819,200 over a five-year period from PMB Motors, later taken over by South Cleveland Garages, in Darlington.

But former PMB owner John McArdle and South Cleveland Garages managing director Bill Robson, have said that that the true amount was closer to £1.3m.

Jane Waugh, defending, told Teesside Crown Court that Blair remembered nothing of the thefts, which involved laundering company cheques through her own and others' bank accounts.

"Mrs Blair committed these offences. She has accepted that. It's unfortunate that she now has problems with her memory and doesn't actually remember it."

She said Blair told her: "I can only assume I was under so much pressure that it was easier to do it than to not do it."

Deborah Sherwin, prosecuting, said when Blair was originally interviewed by police she told them she stole the money because she was "in a corner".

"Having got away with it, she did it again," said Miss Sherwin.

Blair, of Summerhouse Grove, Darlington, was due to be sentenced yesterday along with her brother, Edward Grimes, 48, and his son, Christopher Grimes, 25, both of Bousfield Crescent, Newton Aycliffe, whom she persuaded to launder some of the cash.

The hearing was adjourned until today because of legal arguments over assets.

The court was told that Blair did not lead an extravagant lifestyle, despite dishonestly benefiting from about £150,000-a-year on top of her £20,000-a-year salary as PMB's financial director.

Miss Waugh said most of the stolen money was used to support Manhattan House, her ailing bridalwear business in Darlington, which eventually went into receiver- ship. Blair and her husband, David, also took out legitimate loans, totalling about £200,000.

The house owned by the couple has been sold for £275,000.

A hearing on Monday will determine how much her victims will recoup.

Christopher Grimes, who pleaded guilty to one count of money laundering, put cheques worth £683,481 through his bank account, keeping £22,957 for himself.

His father, who admitted the same charge, laundered cheques totalling £28,950, keeping £3,450.

Both claim they thought they were helping Blair to avoid paying tax