By Julia Roberts

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

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 Wise 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 rear room.

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

"When police entered this void space via a concealed double door they found a fully-functioning automated coin dye-stamping machine and literally thousands of counterfeit £1 coins," explained Mr Forsyth.

There was also a machine which created the dappling effect to the edges of the coins. "There were 8,000 fully-prepared coins and 14,000 in the shape of black metal discs waiting to be pressed with the insignia upon them," added the prosecutor.

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

The court heard that an adapted spanner was found in a pocket of a coat belonging to Michael Silk. "It had been bent in two places and ground down to reduce its thickness," explained Mr Forsyth.

He said it was the Crown’s case that the spanner was a perfect fit to tighten the nuts on the coin edging machine.

Paul Bart, of Stanborough Avenue, Boreham Wood, Hertfordshire, was arrested when he arrived at the premises during the police search.

Neighbours using the surrounding units later told police that vehicles belonging to Silk and Bart were often seen outside.

"One described hearing woodworking going on," added Mr Forsyth. "He said all three (Silk, Silk and Bart) would visit three or four days a week and at weekends and were regularly loading toolboxes into their vehicles and wearing disposable latex gloves."

Such gloves were found in a bin inside the concealed room. DNA from four of them matched Michael Silk.

His car also contained more gloves, metal-welding documents and five metal discs identical to those fitting the coin-pressing and edging machines, the court heard.

Michael Silk denied knowledge of the factory or being a part of the coin manufacture. "He said he had no knowledge of that enterprise at all," said the prosecutor.

"Bart accepted he had a key to the premises and said he did odd jobs for Stephen Silk. He denied any wrong-doing."

Having told the jury that Stephen Silk has pleaded guilty to making counterfeit coins with intent and having custody of counterfeit materials with intent, Mr Forsyth said the issue for them was "simply whether Michael Silk and Paul Bart were involved in it as well."

The trial continues.