A HAIRDRESSER who bought two Rolls Royces with ill-gotten gains has been told to pay back £550,000 of her criminal assets.

Mother-of-two Deborah Clarkson, 47, ran a salon in Water Street, Accrington until she was jailed for mortgage fraud in August 2008.

Clarkson made more than £1.3m from her criminal activity and bought two seaside homes with the profits.

But a Proceeds of Crime Act hearing at Lancaster Crown Court ordered her to repay £550,874.65 within 12 months or serve a further four years in prison and still owe the money on her release, plus accrued interest.

That means she must sell her detached home in Clifton Drive, Lytham, her cars, private number plates and jewellery.

Financial Investigator Alan Todd from Blackpool Police said: “Clarkson had acquired these assets since 2002, whilst having no legitimate income.

"She has led an extremely lavish lifestyle which was wholly underserved and at one stage owned two Rolls Royces.

“This was a difficult and protracted investigation during which Clarkson challenged every step of the legal process.

“Nobody should ever benefit from crime and this case is yet another example of how the Lancashire Constabulary will use the latest proceeds of crime legislation to remove criminal assets.

“We target the profits of criminal activity at all levels in our communities, whether they convicted drug dealers or those who commit complex frauds.”

Clarkson was first arrested in February 2007 and charged five months later.

She told the Halifax and the Bank of Scotland she earned £250,000 a year and ran a property investment firm for 20 years.

The lies she told enabled her to remortgage on almost £1m on the two homes in Lytham.

But despite living a lavish lifestyle with her husband Mark, she was only earning £13,000 annually from the salon.

Preston Crown Court heard she was a housewife and former hairdresser who had given up work to take care of her children.

Her husband had been declared bankrupt in 1999.