A SENIOR manager has resigned from an East Lancashire computer company during an investigation into his involvement with the Titan business club.

Michael Shiel left Granville Technology on May 22. The firm discovered he was collecting money and recruiting colleagues at its premises at Simonstone Business Park.

Bosses discovered that at least seven of the 300 workforce had paid up to join the get-rich quick "scam" and another ten had turned down approaches.

But they fear many more people may have become innocently involved and not owned up.

Titan offers members cash returns after they have joined up for a fee of £2,500. They are encouraged to recruit friends and colleagues in a bid to recoup their money.

The scheme has been labelled a scam by MPs in the House of Commons and is the subject of a Government winding up action which is due to be heard at the High Court on June 10.

Mr Shiel, 35, of Waddow Grove, Waddington, worked for Granville for two years after joining from rival firm P and P Micro Distributors in Haslingden.

His bosses launched an internal inquiry into whether he was in breach of his contract of employment.

A company spokesman said: "We became aware of telephone calls coming in and going out and other mysterious things happening on our premises which indicated that this man was operating a business during our time.

"Subsequently, it became quite clear that he was involved at a fairly senior level in operating the Titan selling scheme whilst on our premises."

It is understood the company was unwittingly persuaded to store money collected as part of Titan in its safe.

The spokesman added: "When this sort of thing gets into a company it is like a cancer and there are serious implications.

"We have warned everybody about the dangers but to a large extent that is after the event.

"We believe there are still employees who are trying to recover their initial outlay by selling this scheme on, but they are not doing it on our premises.

"Before he left, this man explained to us how the scheme operates and we want to lift the lid on it and make sure no other companies are affected like we have been." Michael Damms, chief executive of the East Lancashire Chamber of Commerce, said: "We would like to know more about Titan and until we do we are treating it with some caution.

"The best advice to people is not to invest until they are satisfied that they are getting a return or improving on their money."

When told that employees at Granville Technology had accused him of being involved in Titan and that the company had launched an investigation, Mr Shiel confirmed that he had handed in his notice.

He said he worked for an American organisation called Titan Incorporated but refused to explain his involvement any further.

He later said: "I am not actually employed by the company but I do have links with it.

"But there are 140,000 people who have an association with the company. I am only one of 140,000 and I don't see the particular relevance of my situation.

"There is no animosity between myself and Granville Technology. I decided that I wanted to move on to other things and I am effectively now self-employed. I was not aware that the company was investigating me."

Lancashire Chief Trading Standards officer Jim Potts said: "We understand that they are seeking to use company incorporation under US law to make the organisation Titan Incorporated.

"That remains shrouded in mystery, as do the reasons for not undergoing the process in the UK."

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.