Serial fraudster Nicholas Wattiez (59) fleeced customers out of thousands of pounds while running a shady furniture company from his prison cell.

The Whittlesey crook's elder brother, Charles, has gone on trial accused of processing the fraudulent earnings through his own bank account.

Charles Wattiez, of Meadow Lane, Huntingdon, denies money laundering charges.

Taking the witness stand at Huntingdon Crown Court yesterday, the 65-year-old said he was being used by his brother and had no knowledge of the con.

He told jurors: "If someone had said to me this could be construed as money laundering, I would have dropped it like a hot potato.

"I have been in business for 35 years, and I have never done anything dishonest in that time. I have never even paid a bill late or argued with a supplier. As an ex-sailor, I would say I run a clean ship."

Charles Wattiez, who runs a screen printing firm in St Ives, said he had had little contact with his brother in 30 years, but began visiting him in prison when it emerged he was ill.

Nicholas Wattiez has served numerous jail sentences for dishonesty and deception, and was most recently locked up for eight years in 2001 for a £2 million business fraud.

The Evening Telegraph told this week how he admitted using his day release from an open prison in Surrey to run a similar scam between 2006 and last October, using his brother's bank account to launder the proceeds.

Charles Wattiez told the court his brother suddenly deposited money into his account in 2006. He assumed it was a partial repayment of an old debt, but his brother asked for the money back straight away.

A series of transactions began, with Nicholas Wattiez crediting the account and Charles Wattiez cashing cheques to give him the money.

He said he was unhappy with the arrangement, but his brother assured him it would only be "short term".

His accountant advised him to set up a different bank account for the transactions to avoid being linked with his brother, but he told jurors: "I didn't want to hide behind a separate bank account, because I didn't want to imply in any way that there was a business link between me and Nicky.

"I was just a brother doing a favour by cashing some cheques, which I believed had been earned honestly with no deception."

The trial continues.