TWO SISTERS accused of frauds worth £1.5m - including one against a Penrith haulage firm - have admitted their guilt.

Joanne Palmer, 40, and Stephanie Palmer, 38, who also faced allegations of blackmail, had denied any wrongdoing but as the second day of their trial got underway they accepted committing the frauds.

Most of money they made was taken from Penrith-based firm SI and S Hastings Haulage; the sisters falsely claimed that the firm owed them money for advertising, despite no advert ever being asked for or produced. 

In total, the sisters took £1.2m from the firm, Carlisle Crown Court heard.

The defendants also targeted a firm in Bridlington, making an official there hand over almost £300,000.

After the sisters each admitted two counts of fraud, the prosecution accepted the defendants' not guilty pleas to blackmail and money laundering charges.

Opening the case yesterday, prosecutor Tim Evans described how the Palmer sisters cold called the the Penrith haulage firm, offering to arrange advertising.

In subsequent months, the sisters 'relentlessly' pursued the firm's company secretary, demanding money for non existent adverts.

They used the same technique against the Bridlington Shellfish Company.

In the case of SI & S Hastings, the company secretary was told her business would be ruined and there were also threats to 'hurt' her children and grandchildren, Mr Evans told the jury.

The jury were due to hear evidence of phone calls made by the sisters to the woman, which showed their 'determined and relentless persistence' as they pursued what was a 'dishonest scam,' said the prosecutor.

A third defendant, Kelly Shaw, of Winterburn Green, Stockport, never spoke directly to the haulage firm’s company secretary. She has however admitted money laundering for the sisters.

Mr Evans then spelled out the sums of money involved. In the case of SI & S Hastings, a firm which never needed to advertise, the value of the alleged fraud was £1,221,634, while for the Bridlington firm, the amount was £298,178.

Shaw received £80,000 from the firm, the court heard.

Mr Evans said that 'professional fraudsters' were good at identifying people who were vulnerable and in the case of the Penrith haulage firm the woman they demanded money from was vulnerable.

Mr Evans said: “There is no doubt at all that there was no advertising done by anyone in this case; there was no underlying work to justify any of the money being demanded... Astonishing sums were paid for what is accepted to be fraud.”

The jury were presented with a summary of evidence distilled from more than 4,000 pages of telephone and other records.

Mr Evans described how the woman who made the payments began in 2017 to get calls in which she was asked if she wished to advertise the business in a magazine or online. She regarded the calls as standard 'cold call' advertising enquiries and suggested the caller could send some paperwork for consideration.

“She was never going to take them up as they [the firm] have got their customer base and are already pretty well known in the area,” said the barrister. SI & S Hastings in fact never received any paperwork, or invoices.

“Not long afterwards,” continued Mr Evans, “the [company secretary] received calls claiming there was an outstanding balance of money owed to pay for advertising. She told the caller she had not agreed to any advertising.

“The caller said yes she had; she had agreed verbally and therefore owed money.”

Mr Evans said the Hastings company secretary, who may have panicked, began to get 'numerous calls' every day demanding payment – calls through the company number and also to her personal mobile.

The prosecutor said: "They were relentless in the contact that they made... There were calls threatening that the bailiffs would be at her home within the hour; they were abusive and threatened to finish her business.

“Some of the calls said that if she didn’t pay the money, they were going to hurt her children and her grandchildren.”

The woman was convinced that the threats would be carried out, and feared for her family's safety.

Thus she began making payments to the sisters, the court heard.

The sisters and Kelly Shaw will be sentenced on August 4 after the Probation Service has prepared background reports.

In the meantime, they were all granted bail on condition that they have no contact with the victims of their offences.

Court records show the Palmer sisters live at The Precinct, Romiley, Stockport, while Shaw lives at Winterburn Green, Stockport. A fourth woman, Stephanie Charnock, 43, of Maplecroft, Stockport, admitted money laundering at an earlier hearing.