A FAILED businessman has denied knowingly gambling thousands of pounds in drug money into financial markets during the "worst year of his life".
Paul Hooper, 39, took to the dock in Chelmsford Crown Court last week to vehemently deny a single count of conspiring to launder money.
The father-of-three is one of seven people standing trial accused of their parts in a "sophisticated" drugs and money laundering operation centred around a South Hanningfield country house and a cannabis factory in Margaretting Tye.
While Hooper distanced himself from the alleged setup, he told jurors he invested £14,500 from two friends, now his co-defendants, into the IG Index.
He was also forced into detailing how he lost tens of thousands of pounds of his family's money.
"It was a complete mess," said Hooper.
"I didn't have any money to pay them back – there wasn't a penny to hand back.
"I don't talk to my family because of it. I have lost my friends, I don't talk to them anymore. It was a really crappy time.
"It was the worst year, or worst 18 months, of my life. I was lying to everyone.
"Everyone had their money invested with me and I was gambling it away. It was a really horrible time."
Hooper told jurors he got involved in the IG Group in August 2010, a financial spread betting firm, when an old friend showed him he could make thousands.
Hooper said he recruited six investors to plunge upwards of £45,000 into an account, some of the money coming from profits from his firm Essex Teeth Whitening and some from his uncle and nephew.
'Pressure'
Crucially one investor was allegedly co-accused Perry Higley, an ex-neighbour from 15 years ago, and Acorn Developments construction firm owner Wayne Mixture, who Higley introduced him to in 2011.
"But the losses became unsustainable," said Hooper, describing how he turned to the commodity market to rescue lost funds.
Higley and his girlfriend Rachel Croudace demanded money back to pay rent, but with the money tied up, Hooper allegedly ended up paying their gas, rent and Sky broadband bills out of his own pocket.
"I can't really express how badly this IG account went. The pressure was on me," he said.
"I had thousands and thousands of people's money and when they asked to withdraw it I couldn't and I was making up cock and bull stories."
In summer 2012 he said he terminated the IG account and paid back Higley's £4,500 but only £7,000 of Mixture's £10,000.
Hooper, now an IT contractor, paid nothing back to family and friends.
When asked by his barrister Graeme Wilson if he had any idea he could be laundering drug money he said "No, none at all."
The operation, allegedly spearheaded by Higley, was supposedly rumbled when police found an industrial-sized cannabis factory, 17kgs in cocaine mixing agent benzocaine, a revolver, machete and CS gas canister in an outbuilding at Van Dyke Farm in Margaretting Tye in February 2013.
Upon raiding Higley's former home Hamilton House, in South Hanningfield, police say they found a hydraulic press for cutting cocaine blocks, £11,000 cash and cocaine mixing agent caffeine.
Perry Higley, 52, is charged with conspiring to supply cocaine and to launder cash between September 1, 2011, and April 24, 2013.
Higley is also charged with possessing a flick knife, a folding pocket knife, two knuckle dusters and four shotgun cartridges without lawful authority at Hamilton House on February 11, 2013.
James Whiteman, 35, and Stephen Waite, 44, are charged with conspiring to supply cocaine during the same period.
Rachel Croudace, 27, William Sorrell, 19, Wayne Mixture, 44, and Hooper, 39, are charged with money laundering.
All deny the charges.
The jury, however, has been told Higley, Whiteman and Waite will plead guilty to conspiring to produce cannabis between September and February 12, 2013.
Sorrell is also charged with conspiring to produce cannabis but has pleaded not guilty.
The trial, which involves as many as 100 witnesses, two prosecution lawyers and seven defence lawyers, is expected to conclude in early February.
The Chronicle cannot identify the defendants by address or print their pictures due to reporting restrictions imposed by Judge Patricia Lynch.
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