A BEREAVEMENT counsellor handled his elderly client's money despite a code that forbids him becoming involved in financial matters, a jury heard.

Social worker Diana Beadle told York Crown Court that Peter Michael Powers, 50, was her main source of information about how much money widow Betsey Finlay had.

She was so concerned by what the volunteer from CRUSE bereavement counselling service told her she consulted the woman's next-of-kin Doreen Hodgson and called in police.

Powers, of Sycamore Place, New Earswick, denies stealing thousands of pounds from Mrs Finlay between November 1998 and April 2000.

Asked what knowledge CRUSE counsellors should have of their clients' finances, its referral secretary Dorothy Ward told the jury: "Nothing whatsoever".

Mrs Beadle, care manager at City of York Council told the jury she held a meeting with Powers and Mrs Hodgson at her offices to discuss the widow's money as part of a residential or nursing home placement.

At the beginning Powers spent five to ten minutes asserting he had got no money at all from Mrs Finlay despite doing a lot of work for her.

"What was he being accused of?" asked prosecution counsel Tom Storey.

"Absolutely nothing at all."

During the meeting, Powers said he had lost one of Mrs Finlay's bank cards, and that he had used cashpoint machines to withdraw £6,000 from one of her accounts which he had handed on to her.

He did not know what she did with it.

Mrs Beadle got the impression he thought there was money in the widow's house, but when the social worker and Mrs Hodgson checked the property the next day, the only money they found was £1.98 in very old pennies.

Before the meeting, Powers had claimed the widow had given £6,000 to a former next-door neighbour, Mark Richards.

Mr Richards gave evidence that Mrs Finlay did not give him any money.

Mrs Ward said that on October 15 1998, Age Concern unusually asked CRUSE to arrange the funeral of Mrs Finlay's husband Raymond because it then believed she had no local living next-of-kin, said Mrs Ward.

It was the first such request in 23 years for CRUSE's York branch.

The same day, she assigned Powers to do it and advise Mrs Finlay on the formalities around death.

She expected him to have ended his contact with Mrs Finlay after she and he had a briefing meeting on October 27 1998.

The trial continues.

Updated: 08:48 Thursday, February 28, 2002