An investment boss was told he would be shot dead if he did not hand over £27 million from his company's account, a court was told.

Patrick Kelly was taken to a house in Crawley and threatened with guns during a six-hour ordeal, Hove Crown Court was told. Lester Deakin is accused of using an air pistol while his half-brother John Venn brandished a realistic-looking imitation Russian assault rifle with a bayonet attached to it.

Mr Kelly's business partner, David Reece, was phoned and told he too would be shot unless the money was paid into a bank account within 24 hours. He agreed to pay £1.8 million but tipped off Sussex Police.

Richard Barton, prosecuting, said Mr Reece was a director of financial investment firm Acadami Financial. He added: "Through that company individuals invested tens and sometimes hundreds of thousands of pounds. Two of those people were Janet Linn and her daughter Tracey Davey who invested a lot of money through David Reece over a number of years."

Mr Barton said they had problems recovering their money after Mr Kelly became involved in running the business. He said Mrs Linn and Miss Davey were put in touch with Deakin through three associates.

Deakin hatched a plot to lure Mr Kelly from London to his home in Crawley last August. Mr Barton said: "He made out he wanted to invest money with Patrick Kelly."

He added: "Patrick Kelly drove to Pease Pottage services on August 28 to meet Deakin and Venn who had been co-opted in as extra muscle. They drove to Deakin's house in Broadfield, Crawley, where Mr Kelly thought they were going to discuss investing money Deakin brandished an air pistol, threatening to kill him unless the money was paid.

"They contacted Mr Reece in Cyprus and said if he did not come up with the money they would both be shot. Initially the sum Deakin claimed was owed was £27 million.

That came down to £7.2 million and ultimately to £1.8 million."

Mr Kelly told Deakin he needed to take medication. He left the next day after promising to return, but he went back to London where he phoned Mr Reece who contacted Sussex Police.

Deakin, 46, of Regents Close, Broadfield, and Venn, 36, of Rotherfield Avenue, Eastbourne, deny blackmail by demanding money with menaces and having firearms with intent to cause fear of violence.

The trial continues.