A Ballasalla businessman has denied being involved in a £13 million fraud relating to the purchase of an airline.

Jason Gerard Scales is accused of providing documents fraudulently claiming that the Isle of Man Government was underwriting a loan for the purchase of Stobart Air.

Mr Scales’ company, Ettyl Limited, had been in talks to buy Stobart Air last year.

On Tuesday, the 28-year-old pleaded not guilty to fraud by false representation, and two counts of making articles for use in fraud.

Prosecuting advocate Hazel Carroon submitted that the case was too serious for summary court and should go to the Court of General Gaol Delivery for trial.

Defence advocate Jim Travers agreed that the case should go to the higher court.

The allegations are said to involve fraudulent documents, namely a letter of support from the Department of Enterprise, and a guarantee and indemnity document, purportedly signed by the chief secretary of the Isle of Man Government.

The fraud is alleged to have been committed between April 7 and June 5, 2021.

Mr Travers asked for his client’s bail conditions to be varied, to allow him to leave the island to attend his mother’s birthday party and a charity Santa Dash in the UK.

Mr Travers said that his client, who lives at Douglas Road, could put forward a surety of £4,000.

The bail variation was opposed by prosecuting advocate Hazel Carroon.

High Bailiff Jayne Hughes refused the request to leave the island and said that a surety of considerably more than £4,000 would be required.

The case will be committed to the Court of General Gaol Delivery on January 12.

Bail continues in the sum of £2,500 with a condition not to leave the island, not to contact witnesses, and to surrender his passport.