Father-of-two Akbar Ullah took the money from mortgage brokers who thought they were paying for his financial expertise, but they ended up losing the cash, Burnley Crown Court was told.

Ullah, who was subject to a suspended prison sentence at the time, was said to have been having cash flow problems with his business, which had a turnover of £25,000 a year.

The defendant (29), of Leeds Road, Nelson, had earlier admitted obtaining a money transfer by deception and fraud last December. He was given 120 hours unpaid work and must pay £3,525 compensation.

Recorder Rowena Goode, who read references on Ullah's behalf, including one from Coun. Mohammed Iqbal, told Ullah it was a concern he committed the offences six months after being given a suspended sentences.

Mr Nigel Booth (prosecuting) said Ullah used the Internet to make contact with mortgage brokers offering technical expertise in setting up a system which would redirect people to the company's website if they were searching for mortgage brokers.

Two companies handed over money in the sums of £2,350 and £1,175.

One of them tried to contact the defendant, but could not get in touch with him. He made phone calls and sent faxes and emails but his efforts failed. The other victim managed to get hold of Ullah but the defendant alleged his office had been broken into and his computers smashed.

Mr Neil Usher (defending) said Ullah had not only been sloppy and unprofessional, but dishonest.

He had been having cash flow problems with his company, which sold software to small and medium businesses and which he had been running for two years.

Mr Usher said Ullah felt remorse and shame and knew he should have refunded the money. He had a genuine product he hoped to sell but was unable to deliver. "He was unable to sell it. The money had been spent. He repeatedly fobbed off the two businesses.