A fraudster stashed away £48,000 worth of stocks and shares on some of the UK’s biggest companies while claiming thousands in benefits, a court heard.

Mohammed Hafezji had investments in Rolls-Royce, British Gas, National Grid, Centrica, BT, Corus and the British Airports Authority.

But despite enjoying regular quarterly dividends of several hundred pounds, the 52-year-old from Walsall failed to notify the Department for Work and Pensions of his investments and claimed nearly £21,000 in housing and council tax benefits between August 2001 and September last year.

Wolverhampton Crown Court heard yesterday how Hafezji was caught out by the benefits tracking system which can trace bank accounts by anyone claiming benefits.

When he was contacted, however, the court was told he tried to draw out £7,000 in a matter of days.

Prosecuting on behalf of Walsall Council, Mr Philip Brunt said: “He was written to in June 2006 and we asked him about any bank accounts he had. The only information forthcoming was about bank details we already knew.

“In July 2006 he withdrew £7,000 within a few days of his first letter from the authority.”

Mr Brunt said they had noticed Hafezji’s investments based on regular dividends paid into his account.

Defending, Mr Daniel White said Hafezji, who came to Britain from India in 1979, spoke very little English and had been given bad advice on filling forms.

“There is no suggestion he has had a lavish lifestyle. He is extremely sorry.”

Hafezji, of Haugh Road, Pleck, pleaded guilty to five charges of making false representations in order to obtain benefits. Recorder Simon Drew gave Hafezji six months to pay off the money either in its entirety or up to 80 per cent of the total.

Sentencing was deferred until December 19.