A MORTGAGE consultant stole thousands of pounds from two Bolton families, a court heard.

Christian Obasi, aged 40, avoided handing over endowment policy compensation payments he received for his clients by pretending he was ill in hospital, it is claimed.

Prosecutor Michael Morley told Liverpool Crown Court the couples had contacted Obasi at Bury-based Austin Hamilton Associates in a bid to claim compensation from mortgage providers after their endowment policies fell short.

Obasi, of Mandela Court, Wimberley Street, Blackburn, was the only person working for the firm, which was initially based in Stockport before moving to Tottington, Mr Morley said.

He said one couple was entitled to £3,000, less Obasi's commission of £590. But, despite Obasi telling them in January, 2006 that they would have the money within 21 days, nothing happened.

In April, they received a letter purporting to be from the company secretary saying she no longer held that position and that Obasi had been in hospital for a long time. He later admitted to police that he had written that letter, Mr Morley said.

"He had obtained their money and simply did not hand it over," the prosecutor added.

The other couple were entitled to just over £21,000 compensation, less Obasi's commission of £4,200, and almost £20,000 in the surrender value of their policy.

Their building society handed over the money to Obasi in March, 2006 and three weeks later the couple received the surrender money but the court was told the compensation never arrived.

Both couples contacted the police and Obasi was arrested in August 2006. When interviewed, he said he had gone into hospital that February with heart problems and had then had difficulties "getting back up to speed".

The day after he was interviewed, the first couple got their money from him and the other family got theirs just days before he first appeared in court in March last year, said Mr Morley.

Obasi denies two offences of theft.

The case continues.