A LEGAL loophole allowed a social club treasurer who admitted making thousands of pounds worth of unapproved phone calls to escape prosecution yesterday.

Donald McDermid made hundreds of calls to premium rate horse racing and other lines from Belford House Sports and Social Club, Sunderland, where he was treasurer.

His activities came to light after scrutiny of accounts, as the club came under financial pressure.

Durham Crown Court was told he admitted in interviews with police using club phones to make the calls.

But, following legal debate yesterday, Mr McDermid walked free after the court heard there was no suitable charge for his activities.

After Jamie Adams, prosecuting, formally offered no evidence, Judge Michael Cartlidge passed a not guilty verdict.

Awarding defence costs to Mr McDermid, Judge Cartlidge sympathised with the club and said it must "stick in their craw" that Mr McDermid escaped prosecution.

Mr McDermid, 52, of Brandling Street, Roker, Sunderland, denied obtaining a telecommunications service by deception.

It was alleged he made between £16,000 and £20,000 worth of calls using phones at the club.