An estate agent and a landlady tricked vulnerable elderly women into losing thousands of pounds through a pyramid scheme, a court heard.

Scheming Suman Mahmi, aged 44, and Leith Shakes, aged 68, organised recruitment meetings in hotels and a community hall in Wolverhampton to find their victims.

The pair linked up after the older woman let three of her four houses through Lata Estates, the Finchfield Road West business run by Mahmi, Wolverhampton Crown Court was told.

They then tricked people into handing over £500 each by claiming the investment could be turned into £3,500. Each was told they would get their return as they moved higher up the pyramid as more people joined.

Prosecutor Mr Tony Watkin said: “It was a pyramid selling scheme in which both played a part, although neither will admit to starting it.”

It was launched in September 2008 and quickly hit trouble although not before the defendants had each pocketed £3,500 from their £500 stake.

Others conned into taking part were left out of pocket when the scheme fell apart in April 2009. They alerted Wolverhampton Trading Standards department.

Documents recovered suggested that 64 people might have paid £32,000 into the scheme, with 55 of them left out of pocket.

But only seven people were prepared to appear as witnesses. The seven could be proved to have lost a total of £4,500.

Mahmi, of Windmill Lane, Castlecroft, who owns five houses in the city, and Shakes of Bushbury Road, Fallings Park, admitted engaging in a prohibited commercial practice between September 2008 and May 2009.

Each was ordered to pay £2,250 compensation to the seven victims and £2,200 towards the costs of the case. Mahmi was fined £3,250 and Shakes £3,000.

Wolverhampton Trading Standards manager Peter Calvert said today: “The message to others thinking of starting pyramid selling schemes is simple — don’t or you will end up in court.”