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One of the directorships he discovered was Thunder Flash Entertainment, owner of hardcore porn sites. "All we're supposed to be is just the names," said the 61-year-old retired supermarket worker, kneeling on the living room carpet to play with the couple's Chihuahua.

The Mawsons are among more than 400 people in and around Consett who have served as directors for companies based in and around the town.

The site is no longer accepting customers; the Mawsons said they had been completely unaware of the practice.

The network of directors in Consett sheds new light on the legal grey zones in Britain's corporate regulation, showing how they help scammers turn UK businesses into tools of deception.

He agreed to talk to reporters a few weeks ago when he was leaving a branch of Starbucks at the local mall.

The residents of Consett are key cogs in a booming online industry.

A Reuters investigation has found they have served as directors of more than 1,000 businesses: poker games, pop-up get-rich-quick schemes, vendors of colon cleansers and healthfoods, and much more.

In 2009, the US Secret Service found that a company serviced by Dowson's business with a Consett director had breached money-laundering laws.

A German who confessed to being behind the operation was fined and jailed in the United States.

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