A businessman and his secretary have been charged with two mortgage frauds totalling £1 million.

Carl Hughes, 44, and Gaynor Grundy, 66, are each accused of making or supplying false documents obtained via the internet and it is further alleged that false payslips and P60 tax certificates, in the name of Kerry Hughes, were allegedly used to support two £500,000 mortgage applications, reported the Express and Star.

Hughes was in the headlines last year after he was involved in the management of residents for two care homes, whilst being a banned director. At the time, Hughes was stated in the Financial Times as saying: “There was no dishonesty involved in my dealings as a director.”

He was banned from being a director by the Insolvency Service in April 2009 for not keeping proper accounting records and not filing accounts on time. It was reported in 2010 that Hughes was under investigation by the Care Quality Commission for failing to inform it of a nine-year ban.

Going back to the Hughes and Grundy mortgage fraud case, they appeared before magistrates at Cannock facing four charges of making or supplying false articles for fraud and two of fraud by false representation.

Neither Hughes, of Stafford, or Grundy, of Dudley, gave an indication of plea to the charges, which date to a period between March and November 2009.

The magistrates declined jurisdiction and directed the case should be heard at Stafford Crown Court.

Both defendants were remanded on bail until February 9.