Burnley Crown Court heard how Jonathon Hartley obtained Internet auction accounts with the website using the names of real and fictitious people and did not pay charges.

He then either did not send out any goods - MP3 and MP4 players and memory sticks - to customers at all, or sent fake or defective goods. Others in China were said to be involved in the massive deception which drew in at least 640 victims.

The defendant, of Scotland Road, Nelson, admitted five counts of obtaining services by deception between April 2006 and April 2007, five fraud allegations between January and September last year and one count of money laundering between January and September, 2007. He had no previous convictions.

Hartley denied three further allegations of obtaining services by deception going back to 2004 and 2005 and one of supplying merchandise with a false description and the prosecution accepted his pleas.

Hartley, who was accompanied to court by his parents, was bailed until November 14th on condition he lives at his home address.

The defendant, who is also facing a proceeds of crime application by police, was told by Judge Simon Newell: "The fact I am granting you bail is to be taken as no indication of sentence. All sentences will be at large and you have to bear in mind there is every likelihood it will be a custodial sentence."

Mr Jeremy Grout-Smith (prosecuting) said Hartley owed Ebay £39,000 and in the region of £14,000 to the victims.

Mr Phillip Curran (for the defendant) said police were able to seize money from the defendant's accounts, which more then covered the £53,000. He said others in China were involved in the fraud, which began as a legitimate exercise.

The court was told the names and addresses used by the defendant were picked at random but some of the false addresses belonged to real people. One multiple sclerosis sufferer in Durham ended up with bailiffs at her door. Mr Curran said it had been very unfortunate, but Hartley had not targeted her.