A BURNLEY man was involved in an extensive drug dealing operation where profits were laundered to buy a sub-post office and luxury cars, a trial was told.

Defendant Arshid Khan, who was receiving state benefits, was running around in a top of the range BMW M3, the court heard.

The 36-year-old, of Colne Road, denies charges of conspiracy to supply heroin, and conspiracy to conceal or transfer proceeds of drug trafficking.

Suzanne Goddard, prosecuting, told the jury at Preston Crown Court that in the summer of 1998 police in the Burnley area discovered that an extensive drug dealing operation had been carried out.

The large scale operation involved five men - one of whom was said to be Khan, the court was told.

At a previous trial, at the end of which, two men called Azizul Wahab and Joseph Cromer were found guilty of conspiracy to supply heroin.

Two other people, Roy Crossley and Anthony Dewhurst, pleaded guilty, in the year 2000, to supplying Class A drugs.

Arshid Khan was not located until his arrest in October 2004 in Bradford, said the prosecution. His brother Asad had been cleared of the conspiracy charge.

Miss Goddard told the court: "It is the Crown's case that Azizul Wahab and Arshid Khan were in charge of the drug dealing operation. Each ensured they had little or no direct dealing in the commercial supply of drugs.

"There is no doubt, we say, they were directing operations and syphoning profits into property and luxury cars."The Crown claim that money which flowed from the conspiracy was used to buy Harle Syke post office in Burnley for £100,000 and the defendant was one of its three employees. Another relative was the postmaster, the court was told.

Miss Goddard added "The prosecution say it was a front, through which the proceeds of the drug dealing could, in due course, be laundered. The business had only been running a few months when police raided it and trading ceased. We don't allege drugs money had been put through the books at the Post Office.

"It is the Crown's case that drugs money had gone into the purchase and refurbishment of the Post Office."

In July 1996 Arshid Khan ordered a top of the range BMW M3 from a garage in Manchester for £32,500, the court was told.

He later bought a Porsche 911 for £52,000.

(Proceeding)