John Woodhatch helped launder £2.6m from Guernsey States

John Woodhatch admitted helping to launder £2.6m stolen from the States of Guernsey

A businessman has admitted helping to launder £2.6m stolen from the States of Guernsey.

The Guernsey Treasury Department thought it was transferring the cash to the account of a government contractor.

At Southwark Crown Court in London, John Woodhatch, 58, admitted entering into a money laundering arrangement and transferring criminal property.

Woodhatch, of Loughton, Essex, will be sentenced at a later date.

'Custodial sentence'

The Guernsey Treasury Department had received a bogus letter purporting to be from Lagan Construction which won an £80m contract to refurbish the runway at Guernsey Airport.

The letter requested the department change the bank details it held for the major government contractor.

As a result, £2,613,032 was diverted to a Royal Bank of Scotland account in the name of Sports Currency Management Limited in July, 2012.

Additional charges of conspiracy to defraud and acquiring criminal property, that Woodhatch denies, are to be left to lie on file.

Judge Michael Gledhill QC told Woodhatch: "I don't want you for a moment to think you will not be receiving an immediate custodial sentence."