A Crown Prosecution Service (CPS) accountant who pleaded guilty to fraud over a £1m fake taxi scam has been warned she faces a lengthy jail sentence.

Lisa Burrows, 41, and her colleague Tahir Mahmood, 50, made false claims for witness taxi services over a four and a half year period.

Birmingham Crown Court heard how the crooked duo conjured up a fake cab firm called 'B&M Taxis' - named after the pair's initials - and made claims totalling £1,021,475. The couple spent the money on luxury holidays, designer clothing and property.

Both finance manager Burrows, and administrative officer Mahmood - also known as Joseph Thomas A'Neil - worked for the West Midlands CPS, and admitted conspiring to commit fraud yesterday.

Judge Webb told the pair: 'You have both pleaded guilty to what is a serious offence and both of you recognise that the court will impose a custodial sentence when you come back to be sentenced.'

At an earlier hearing, Malcolm McHaffie, deputy head of special crime for the CPS, told Birmingham Magistrates' Court :.

'He [Mahmood] was a former taxi driver, who assumed the name Joseph Thomas A'Neil and opened bank accounts in that name.

'They claimed for services provided by the made-up name of B&M taxis, standing for Burrows and Mahmood

'Evidence proves she went to Dubai on previous occasions and spent money on expensive clothes, jewellery and other holidays but this in no way explains where the £1m went.

'There was only £1,400 left in the account connected to him when they were arrested.

'They maintain it spiralled out of control and there is no money left. As I understand there is a substantial amount of work to be done to trace the money from the fraud.

'They both made relatively small deposits on property, Burrows £15,000 and Mahmood £20,000.'

Burrows and Mahmood were remanded in custody until sentencing on 4 July.