A travel agent, who specialise in Christian-themed holidays, defrauded customers who booked a 'Bible Lands Cruise' out of £26,000, a court heard.
Bob Fleming, 62, didn't use the booking fees he charged to secure berths on the 'Thomson Spirit', but ploughed the money into a Turkish hotel venture.
He then encouraged his customers to fork out extra cash to extend their holiday to include a stay at the hotel he had leased and repaired, Kingston-upon-Thames Crown Court was told.
Fleming, the boss of Living Sun Holidays, of Selwyn Road, New Malden has pleaded not guilty to two counts of fraudulent trading between January 1 and November 30, 2014.
He has also pleaded not guilty to two counts of engaging in misleading commercial practice and failing to provide evidence of a security between March 1 and October 31, 2014.
Prosecutor Mr. Richard Hallam told the jury: "Mr. Fleming was a travel agent and tour operator, who for thirty years arranged holidays in the UK and abroad.
"His specialism was Christian holidays and he was the director of Kyrilios Ltd and Living Sun Ltd., which traded under the name Living Sun Holidays.
"There was improper use of customers funds who had booked the cruise and he carried on the businesses for a fraudulent purpose."
Fleming was investigated by Trading Standards from the Royal Borough of Kingston-upon-Thames after receiving a complaint on October 17, 2014.
There was already an existing complaint from tour operator Thomson about Fleming using their name on his brochures.
He advertised the ten-day eastern Mediterranean cruise to his existing customers, which was due to begin in Turkey and conclude in Israel.
It would visit such historical destinations as the site of the Colossus of Rhodes; Byblos, Lebanon and the tour would also visit Jerusalem's Garden of Gethsemane.
The brochure claimed the cruise would include full-board, three meals a day, transfers and be led by Biblical experts Rev. Brian Fishel and Fleming himself.
"Mr. Fleming presses Thomson again and again for a free place for himself and by the time of the cruise his business is on the verge of failing."
Trading Standards traced fifteen customers who paid £26,000 to Fleming. "They thought they were securing a berth on a cruise ship.
"He should have paid for the cruise with that twenty-six thousand, but he didn't.
"It was channeled to his other business, a hotel he had leased in Turkey and he asked his customers to stay in that hotel.
"He used the money to renovate that hotel. It is dishonest, but Mr. Fleming said he did not see it as fraudulent," added Mr. Hallam.
Customers started asking for refunds when the cruise itinerary was changed because of trouble in the Gaza strip.
"Refunds were chased, but there had been no protection in place in the eyes of the law and he had lied that flights were ATOL-covered."
"Mr. Fleming never paid or confirmed the bookings with Thomson.
"He had to invent reasons why there were delays in refunds, including blaming Thomson's trading standards investigation.
"He had no right whatsoever to plough the money into the hotel in Turkey and quite incredibly some customers were invited to loan money to the hotel.
"He misused and lost their money in the business venture and had to fabricate why he had to cancel a cruise he had never booked.
"Two weeks before the cruise Mr. Fleming purported to cancel the cruise on the basis of an unsatisfactory itinerary. The cruise went ahead."
When questioned by Trading Standards Fleming blamed the Gaza re-route for wrecking the cruise, but conceded he: "Screwed up."
"It all started to unravel," he explained. "Money just vanishes."
Despite his financial troubles the prosecution accept Fleming did eventually take care of customers.
"Refunds were made to some people many moths later," said Mr. Hallam.
Fleming told the jury no customer had been left out of pocket.
"There are no debts, no one's owed any money.
"Yes, we made mistakes, but did not intend to mislead, deceive or defraud people.
"I don't believe I am guilty of an offence."
Trial continues……………
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