by Julia Roberts

Police discovered a factory making thousands of fake £1 coins when they raided an industrial unit in Tonge, a court heard today.

Inside a concealed void within the unit at Tonge Corner Farm, near Sittingbourne, were 8,000 fully-prepared counterfeit £1 coins, 14,000 metal discs waiting to be manufactured into coins and a hydraulic machine press.

The premises were being rented by 49-year-old Stephen Silk, of Wises Lane, Borden. A jury at Maidstone Crown Court was told he has admitted his involvement in the operation.

However, his father, 70-year-old arthritic Michael Silk, and his brother-in-law Paul Bart, 65, deny that they played any part or had any knowledge of the coin-making factory.

They have pleaded not guilty to making counterfeit coins with intent on or before May 13, and having custody of counterfeit materials with intent - namely the hydraulic press - on the same occasion.

The two men also deny an alternative charge of having custody of counterfeit coins intending to deliver to another.

Silk, of Sanderling Way, Iwade, was arrested when police raided the unit on May 13. He was with his son in a back room.

Prosecutor Andrew Forsyth said the police then discovered the "extremely well-disguised" concealed room which had been created using wooden panelling.

Inside was an automated coin dye-stamping machine, thousands of coins and a machine to creat the dappling effect on the edges of coins.

Other paraphernalia included coin and dye moulds, genuine coins with wax residue, specialist plaster and a water-cooling system for the coin press.

Disposable latex gloves found in a bin inside the concealed room had DNA on them which matched Michael Silk.

Michael Silk denied knowledge of the factory or being a part of the coin manufacture.

Paul Bart, of Stanborough Avenue, Borehamwood, Hertfordshire, was arrested when he arrived at the premises during the police search. He had a key to the premises and claimed to do odd jobs for Stephen Silk. Bart denied any wrong-doing.

The trial continues.