Former Preston Council deputy leader Frank McGrath could face a jail term of up to 14 years after he was convicted of nine charges connected with underworld business deals.
A five-week trial at Manchester Crown Court heard how police uncovered a complicated web of McGrath's secret business deals, luxurious purchases and laundering of drugs money.
The court heard that McGrath, 59, set-up the racket after he left the old County Borough of Preston Council, in 1992.
Under the guise of a “self employed business consultant and sole trader” McGrath approached a number of businessmen with “easy money” schemes and “loaned” £300,000 to drug dealer and car ringer Silvano Turchet.
The pair met when Turchet was on day release from Kirkham Prison.
McGrath completed a series of purchases on Turchet’s behalf, including a three-bedroom house for his girlfriend and more than £2000 in phone bills.
McGrath was found to have been funding Turchet’s life with “clean money” in return for banking the profits Turchet had made from class A drugs.
He was the “respectable face” which allowed Turchet to continue importing millions of pounds worth of drugs in his private plane.
The majority of the charges relate to dealings with Tim Proffitt, who was left bankrupt by McGrath’s schemes. In the first, Mr Proffitt handed over a cheque for £92,000 he was told would pay his debtors.
The money disappeared, yet McGrath went on to offer two properties, supposedly in receivership, in Ashton. Mr Proffitt was asked to pay £45,000 only to discover the house was occupied and never had been on the market.
It is thought money stolen from Mr Proffitt and others contributed towards Turchet’s deals.
Others giving evidence included Eric Grove, 35th richest man in the UK. McGrath brokered various deals for Mr Grove promising a 100 per cent return. To add credibility to his claims, McGrath said he owned a Rolls Royce, an aeroplane and properties in London.
During the five week trial, McGrath tried to convince the jury he was an upstanding member of society.
He frequently referred to his son, who is currently serving in Afghanistan and his wife, Emma, Headteacher of Our Lady at St. Edward’s school in Fulwood.
One victim of McGrath’s cons said: “He’s a crook and a thief who cheated people out of millions of pounds; they lost their homes, had break downs and he goes around as Mr family man.”
Before meeting McGrath in 1980, the man had a number of business interests and says McGrath: “caused so many problems within my business that he caused it to break down.”
McGrath was convicted of nice counts of concealing, converting or disguising criminal property. He will be sentenced on Wednesday 3rd March at Manchester Crown Court with a maximum potential sentence of 14 years.
peter, preston around 3 months, 2 weeks ago