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Giving evidence, Mr Taylor said: "That morning when we began trading on the stroke of nine the phones were literally alive with complaints from clients. There were 14, victims in the UK who lost money.

Mr Taylor, from Wakefield, was arrested after a three-year investigation by Suffolk Trading Standards. The defendant had given Muldoon access to his bankand told the jury he initially thought the king business was professional and legitimate. Four others all deny conspiracy to defraud. The trial continues.

He told the jury he did not know his bank was being used for money from escort services. Mr Taylor told Ipswich Crown Court he kept the money because he was ipswicy. I didn't want to spend it," he said.

The court heard when the retired police officer set up an office in Wakefield, work had been transferred from Spain. He had hoped to expand the debt business and involve other retired police officers, the jury was told. Former West Yorkshire police officer Chris Taylor, 57, denies conspiracy to defraud and money laundering.