Dundee man to stand trial over alleged million pound fraud

Accused said to have set up webdesign firm to aid money laundering

A man is to stand trial accused of setting up a web-design firm as a front for a million pound fraud, drug dealing and international money laundering operation.

Dale Pearson is said to have scammed a £250,000 mortgage before “concealing, disguising, converting and transferring” cash and bitcoins amounting to £789,046.64 over six years.

He is said to have used the fraudulent mortgage to buy a six-bedroom luxury property on the outskirts of Dundee.

Prosecutors say he moved vast sums of cash around various bank accounts and converted £25,900.91 into bitcoin – an online cryptocurrency that spiked in value last year.

Pearson is also alleged to have transferred £57,015.71 out of the country to banks and businesses in Pakistan, China, Dubai and Hong Kong as part of the alleged scheme.

An eight-page, 12-charge indictment laid out the charges levelled against Pearson – all of which are said to be “aggravated by a connection with serious organised crime”.

It is alleged Pearson was concerned in the supply of ketamine, diazepam, cocaine and cannabis between June 2015 and June 2017 at addresses in Coventry, Dundee and Edinburgh.

He is further accused of possessing amphetamine at an address in Drumlanrig Drive, Dundee, on August 26 2016 and possessing a “cathinone derivative” class B drug on the same date.

Pearson is also alleged to have attempted to produce cannabis at addresses in Dundee between July 18 2016 and June 27 2017 and supplied ethylone between February 7 and February 15 2016.

A further drugs charge alleges he supplied alprazolam on August 17 2017 while on bail.

An 11th charge alleges Pearson “did conceal, disguise, convert and transfer criminal property” - namely “sums of money and bitcoins” amounting to £789,046.64 between September 1 2011 and August 31 2017.

A final charge alleges he “removed criminal property” from the UK amounting to £57,015.71. Pearson, 26, of Strathmartine Road, denies a total of 12 charges - nine under the Misuse of Drugs Act, one of fraud and two under the Proceeds of Crime Act.

Sheriff Alastair Carmichael continued the case to a further pre-trial hearing in July.