Two brothers who ran a failed lending platform have denied fraud and illegally diverting nearly £700,000 from the company before it collapsed.

Andrew Currie, 56, from Rufford and Peter Currie, 57, from Thornton-Cleveleys, appeared at Southwark Crown Court on Tuesday charged with two counts of fraud and one count of possessing criminal proceeds.

The brothers were directors of Collateral UK, which linked ordinary investors with people wishing to borrow money secured against property or jewellery, until it went into administration on February 28 2018.

They are accused of falsely telling investors that the platform was authorised by the Financial Conduct Authority between December 2015 and March 2018, knowing it was not or might not be true.

The pair are also charged with transferring £275,000 from the company to building developers Auri Developments on February 15 2018 – days before it ceased trading.

They are also alleged to have transferred £410,000 that they knew or suspected was the proceeds of crime into two of Andrew Currie’s bank accounts between February 13 and 28 2018.

Peter Currie, who appeared in court wearing jeans and a blue jacket, spoke only to confirm his name and plead not guilty to all charges.

His brother appeared by videolink and also denied the three charges.

Judge Martin Griffith released them on unconditional bail until their trial on April 11 2023, which is expected to last four weeks.

Peter Currie, of Thornton-Cleveleys, Lancashire – who the court heard is living in Spain – and Andrew Currie, of Rufford, Lancashire, deny fraud by false representation, fraud by abuse of position and possessing proceeds of crime