THE former Mayoress of Chorley has narrowly escaped jail for fraud, but her husband has received 16 months in prison.

Carole Ann Parr, 39, of Chapel Lane, Coppull, received a 160-hour Community Punishment Order. She had pleaded guilty on November 3 to deliberately failing to keep company accounts for three years.

At the same hearing, her husband Steven Parr, 41, also of Chapel Lane, Coppull, had pleaded guilty to fraudulent trading through his company Steve Parr Haulage and Plant Hire, based on Bradley Hall Trading Estate, Standish.

The Parrs tightly held each other's hand in the dock during the sentence hearing at Bolton Crown Court.

Carole's father-in-law, Councillor Ray Parr, was Mayor of Chorley until April this year.

Steven Parr set up a company, Inglenorth, in March 1999, which effectively 'took over' his failing Steve Parr Haulage. Money was transferred between the two companies to give the impression of solvency and a large customer base, but in fact Steve Parr Haulage had only one customer -- Parr's other company, Inglenorth.

A false list of debtors was created, which gave the impression the company had debtor assets worth around £190,000. The couple dishonestly obtained overdraft facilities and opened a business account for Inglenorth. The Crown said that the Parrs had knowingly used Inglenorth to 'soak up' large parts of Steve Parr Haulage, effectively opening a new company, free of debt, while the old one crashed owing hundreds of thousands of pounds.

In August of 2000, Steve Parr Haulage went into voluntary liquidation, with debts of more than £208,000. When liquidators attempted to recover debts, there were none and GMP's Commercial Fraud Unit was called in.

Mr Metcalfe said: "It was clear that deliberate fraudulent trading had taken place so that the Parrs could open and support a new company that was free of debt while their old company was allowed to crash."

The Parrs owed £87,000 to HSBC, more than £24,000 to Customs and Excise, more than £17,000 to the Inland Revenue, and £24,000 in unpaid rates to Wigan MBC.

Defending Steven Parr, Andrew Nuttall said: "This is a man who has worked all his life and is ashamed of what he has done."

Judge Robert Warnock recognised that they were both of previous good character and had been thought of as 'pillars of the community'. "That has now been thrown away," he said.

Steven Parr was sentenced to 16 months in jail and disqualified from being a company director for three years.

Carole Parr was disqualified for two years.

As the sentences were handed out, Steven Parr steadied himself on the rail of the dock. He kissed his wife before being taken down, and Carole Parr then left the dock weeping.