A Manx government minister had talks with an ’international gold dealer’ now exposed as a money launderer over plans for a bullion storage facility at the airport.

The revelation came during the trial of Elton Sheldon who this week was beginning a three year prison term after being found guilty of money laundering.

A jury at the Court of General Gaol Delivery heard Sheldon, 59, was involved with a network that attempted to launder the proceeds of an elaborate million Euro fraud at French industrial equipment supplier Testo.

During an eight-day trial, the court was read a written statement from former MHK John Shimmin who said he had met the defendant from time to time but took what he said ’with a pinch of salt’.

Mr Shimmin, a government Minister who retired from politics ahead of the 2016 general election, said he had discussions in the past with Sheldon who came to him with the idea of developing a gold bullion storage at the airport.

But it went no further, he said.

The court heard that criminals had hacked the IT system at Testo, in Forbach, north east France, using spyware.

A singe transaction of Euro 301,752 of that fraud was transferred on January 20, 2016 from Testo’s bank account to a personal bank account opened by Sheldon at Barclays Isle of Man some months before.

The defendant had tried to open a corporate account at the same bank, claiming he would be receiving £1m from secretarial services.

But his application was denied when Barclays became suspicious.

He also tried to transfer Euro 230,000 from his Barclays account to China and furnished the bank with a bogus memorandum of understanding between himself and the Testo group.

Dated June 2015, it was signed by a Nicolas Pougnet who it was claimed was employed by Testo. In fact, Pougnet was a convicted fraudster.

Sheldon, of Ballachrink Drive, Onchan, was arrested on May 22, 2016 when he returned to the island from abroad.

By then he was aware that his home address had already been searched.

Sheldon chose not to give evidence at his trial.

In a prepared statement given to police after his arrest, he claimed that he had not known or suspected the money was the proceeds of crime.

He said he had entered into a written contract with Testo that he would introduce them to contacts in China. But Testo had never heard of him or Mr Pougnet.

Jailing Sheldon for a total of three years and two months, Deemster Kainth told Sheldon that money laundering was not a victimless crime.

Although ultimately the Euro 301,752 was returned to Testo, staff there had feared for two months that they would not be paid or could lose their jobs.

Deemster Kainth told him: ’I’m more than satisfied the jury came to the right conclusion.’

Prosecutor Mark Benson described Sheldon, who had no previous convictions, as a ’professional money launderer’.

But defence counsel David Clegg said after his client had been convicted that there had not been a great deal of sophisticated planning and the offences were always bound to be detected.

He said it seems bizarre that Sheldon would put himself in the position where he was ’effectively left holding the baby when the music stopped’.