TWO men are facing lengthy prison sentences after being involved in a scam to con companies across the UK out of nearly £700,000.

Mohammed Khatana, formerly of Hawkswood Gardens, Brierfield, and James Stuart, of Solihull, were involved in a £680,000 plot to get companies to sign up for the Data Protection Act.

Khatana, 43 pleaded guilty to 13 counts of theft and eight counts of money transfer deception at Burnley Crown Court. He asked for 54 similar charges to be taken in to account.

Stuart, 50, pleaded guilty to being concerned in money laundering.

The charges relate to Khatana, a father of three, setting up a company called Ultima Consulting based at Northbridge House, Elm Street, Burnley, in June 2003.

Between July and May this year letters were sent to companies nationwide charging them to sign up to the Act.

Although most businesses processing personal data are required by law to register, in most cases it is free.

On receipt of the money Khatana never registered the companies and Stuart banked the money on his behalf.

The pair were arrested on May 12 after police launched an investigation following complaints, including some from former employees of Khatana.

Khatana was remanded in custody and Stuart granted conditional bail so he could make arrangements for someone to care for his sick mother.

Speaking after the hearing DS Simon Cheyte, of Burnley CID, who led the investigation, said: "We are delighted with the result."