Two men face jail for handling cash from a major internet scam which left thousands of people out of pocket.

Detectives launched a major investigation after a fraudster cashed in on the launch of the Nintendo Wii Fit.

More than 3,000 people ordered the consoles from on-line trader Zavvi Direct in June 2008.

They believed they were buying from Zavvi Entertainment which bought Virgin Megastores and had a shop in Churchill Square, Brighton.

Orders worth £248,000 were taken in just three weeks by Zavvi Direct which was registered at an empty office in Old Steine, Brighton.

The fraudster stole the identity of innocent Hove businessman Paul Clayton to set up the bogus company.

The conman, who has never been caught, used Mr Clayton's identity to pass the money he stole through a number of dodgy bank accounts.

Restaurant owners Demis Farley and Marco Caracciolo were yesterday found guilty of 14 charges of money laundering after a three week trial at Lewes Crown Court.

Farley, 28, of Station Mews, Ramsgate, and Caracciolo, 37, of West Cliff, Ramsgate, were arrested in November 2008.

They told police the £74,000 they received from the man posing as Mr Clayton was payment for 1,700 cases of olive oil supplied by their import business.

They were released on bail until they are sentenced on February 21 but were ordered to surrender their passports.

Judge Richard Hayward told them: “The fact that I am granting you bail until then should not be taken as an indication of the sentence you will receive.

“You have both been convicted on overwhelming evidence and the court will certainly be considering a custodial sentence.”