A FRAUDSTER who conned two companies out of more than £110,000 has been told he may be spared jail after a judge heard about his charity work.

In 2014, Peter Hill and his accomplice Rahman Sharif ran a sophisticated scheme which targeted debt collection firms.

And Bolton Crown Court heard that the pair were also sentenced in January last year for involvement in fraud following theft of a credit card machine in 2012.

But Judge Timothy Stead was told that, for the past two years, 44-year-old Hill has stayed out of trouble and now, with his girlfriend, works as a volunteer with Urban Outreach helping to feed the homeless.

Hill, of Oxford Grove, Bolton, pleaded guilty to three counts of fraud and one charge of transferring criminal property.

Sharif, aged 33, of Keswick Avenue, Gatley, Stockport, admitted two counts of fraud and one of transferring criminal property.

Antony Longworth, prosecuting, told the court how the two men had exploited a loophole, which has since been closed, in the systems operated by debt recovery firms Swift PLC and Proserve between April 1 and June 30, 2014.

Hill and Sharif pretended to be running property rental companies which had tenants in arrears. They then passed responsibility for recovering the supposed debts to Swift and Proserve, handing over stolen credit card details for fictitious tenants.

When the firms claimed the "owed" money they immediately paid out to Sharif and Hill's "companies", Z to Z and P and M. It was only later that the banks declined the payments, leaving the debt companies out of pocket.

Using 11 bogus tenants, Hill netted £54,265 from Swift PLC and, together with Sharif, fraudulently acquired a further £50,030 from the company. The pair also managed to con Proserve out of £6,123.

The court was told that Sharif, who has a previous criminal record for dishonesty offences, including a 16-month jail sentence for the credit card machine theft and fraud, is remorseful for having brought shame on his family.

Hugh McKee, defending Hill, stressed that he had no convictions before 2012 and has kept out of trouble since 2014.

"There was a flaw in the system and they exploited it," he said.

He added that Hill has spent all the money he took, mainly on gambling.

"Who you have today is a very different person to the Peter Hill who was at large in 2012 and 2014," he told Judge Stead.

After hearing how Hill is now in a stable relationship with a partner and they work as volunteers helping the homeless, the judge decided to defer sentencing Hill and Sharif until July 13, when a proceeds of crime hearing will also be held.

Sharif has been in custody on remand for several months.

"This was wholesale organised dishonesty on quite a scale," said Judge Stead, but he stressed that he must treat both defendants equally.

"If, in six months time, these two men have not committed other offences and are able to show positive steps to lead an honest and industrious life then they will not lose their liberties," he said.

He told the pair: "I'm willing to give you a chance to prove what you say. If you keep your side of the bargain you won't lose your liberty."