North Yorkshire trading standing officers are seeking nearly £55,000 compensation for victims of a massive business rates scam, Leeds Crown Court heard.
Robin Spencer QC, prosecuting for the consumer watchdogs, said the money should go to the firms who paid fees of between £176 and £236 to three companies known as "The Oldfields Companies".
The victims thought the money was being used to get them reduced business rates.
However, said Mr Spencer, according to company books "an awful lot of money" was being spent on other matters, including £145,000 on motor vehicles, £10,000 on watches from Switzerland, £390,000 on cash commissions to unidentified people and £250,000 other commission, again to unidentified people.
Company directors Jason Clarke, 32, and Peter Hilton, 57, both of Manchester, have pleaded guilty to fraudulent trading offences involving the companies.
Trading standards officers are claiming the compensation for victims, some of whom would have given evidence at the trial of the two men.
Hilton failed to attend the hearing at Leeds Crown Court.
The hearing continues.
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