A TURKEY farming millionaire called in a "loan" of £150,000 so that a former York businessman could avoid giving his wife half of the proceeds from their home, York Crown Court heard.

Frank Cosgrove, of Grove Turkey Farm, County Monaghan, Ireland, said he loaned Graham Shipley 180,000 punts (£150,000) in 1988 as a thank you for supporting his business.

But when Shipley, formerly of York, and now of Mullinaclry, Clones, County Monaghan, Ireland, was left by his second wife more than 11 years later, he suddenly asked for the cash back.

Richard Mansell, prosecuting, alleges that the money was in fact a gift, and that Mr Cosgrove's loan was "sham" organised to deny Jennifer Shipley, of Helmsley, £82,500.

The court had already heard that Shipley is alleged to have kept the money secret from his first wife during their divorce proceedings between 1987 and 1989.

He denies two charges of perjuring himself by concealing details of his finances in connection with the divorce of his first wife, Susan Shipley, in 1987.

Mr Mansell said that when Jennifer left Shipley and began to organise a divorce, Mr Cosgrove suddenly wrote to them in 1999 asking for the "loan" to be repaid within 14 days.

The barrister said the letter was a "bolt from the blue", which would have denied Jennifer half of the proceeds from the sale of their home, as it would have to be sold to repay the debt.

He said: "You together cooked up this nonsense story, I suggest, about it being a loan and that is why your letter calling in the loan coincides with the petition for divorce.

"This was a fraud on Jennifer Shipley, she would have got half of the house or more."

In the witness stand Mr Cosgrove maintained the money was always a loan.

But Mr Mansell said: "This letter does not ring true because it is not true is it? It is a sham, a fraud. You lied in court before and you are lying to this jury."

The trial continues

Updated: 11:00 Saturday, January 18, 2003