A FORMER Settle man swindled businesses and local authorities out of £60,000 by posing as a pioneering bio-chemist with a new method of making soap.

Carl Obern, 51, pocketed the cash in grants and loans - and tried to pull off another £147,000 swindle.

He claimed he had a PhD in bio-chemistry from the University of Toronto in Canada and a string of ground-breaking schemes.

But on Friday at Leicester Crown Court Judge Stokes sentenced him to two years and three months in prison.

Obern had earlier pleaded guilty to seven deception charges of dishonestly obtaining grants, loans and franchise and licensing agreements between 1999 and July 2004.

He also admitted three attempts to obtain funds by deception.

Obern's partner, Margit Haurenherm, 49, was facing four deception charges, which she denied. The prosecution offered no evidence.

After arriving in Craven from Leicestershire in 2003, the couple settled in a rented cottage at West View, Langcliffe and began establishing their business credentials.

The Craven Herald published an article in June of the same year, giving details of the couple's plans to market an educational CD for schools which featured the voice of actor Peter Sallis.

A later article about the couple, which appeared in September, reported on a scheme they were launching together with a local milkman Ben Chapman to convert whey, a by-product of the dairy industry, into soaps.

It was while they were promoting it that officers from Leicestershire Police's Economic Crime Unit arrived to speak to them about offences in that county some 18 months previously.

The investigation led to Obern, who now lives at Brampton near Carlisle, appearing before Leicester Crown Court earlier this month, where he pleaded guilty to the 10 charges.

The court heard Obern swindled Leicester and County Co-operative Development Agency out of £40,000 after convincing the bosses that he had a wealth of experience in the bio-chemical industry.

North West Leicestershire District Council was also deceived and handed over a £5,000 loan on the understanding he would set up and run a natural products factory shop.

He also obtained a franchise agreement by saying he had developed a unique manufacturing process for soap and had the skills and knowledge to train disabled people.

While living in Langcliffe, Obern had almost persuaded the Milk Development Council into backing him to the tune of £42,000.

He also nearly got his hands on £89,000 from North Yorkshire County Council using the same story of having a patent pending when an article about the couple appeared in the Sunday Times.

Written by award-winning investigative journalist and author Michael Bilton, the article reported on a number of schemes involving the couple in the US, Caribbean and in other parts of the UK.

The article coincided with Leicestershire Police's arrest of the couple in July 2004 and they left Langcliffe and moved to Brampton a few months later.

Obern, who does not have a bio-chemistry degree, is a qualified farrier originally from Leicester.

A spokeswoman for the Milk Development Council said: "The MDC is funded by dairy farmers and we take seriously our responsibility to ensure their money is spent on legitimate business ventures which aids dairy farmer profitability, and the dairy industry as a whole."

North Yorkshire County Council did not wish to make a comment on the case.