The founder of Helston based charity ShelterBox conducted a five year fraud by handing his son lucrative contracts, an Old Bailey trial heard this morning.

Thomas Henderson, 64, the former CEO of ShelterBox, allegedly ensured deals for camping and survival equipment were given to his 35-year-old son John's companies, between 2007 and 2012.

Prosecutor Walton Hornsby said: "The charity is called ShelterBox UK. In the southwest, Cornwall and Devon it is rightly celebrated.

"This case concerns the activities, principally of the chief executive of that charity, namely Thomas Henderson.

"The allegation is that Thomas Henderson authorised large supply contracts for his son John.

"When these were questioned by the management and trustees of ShelterBox Thomas Henderson recruited Darren Gervis to create sham or front companies to mask John Henderson's involvement.

"The essence of the case therefore is an allegation that there was an agreement between the three of them, principally Thomas and John Henderson, that John should be kept as a supplier of goods and services to Shelterbox.

"Everything possible was done to ensure that would happen, whatever objections there may be from other employees and the trustees of ShelterBox and in doing so he also gained significantly financially.'

He added: "It is said that ShelterBox itself may have lost the opportunity of verifying that these contracts were good value and were competitive but additionally it exposed ShelterBox to a risk of loss in a number of different ways.

The court heard Thomas Henderson treated the charity as 'his own personal fiefdom'.

Originally run from his garage its purpose was to deliver humanitarian aid to the victims of man-made and natural disasters around the world, with an international network including Rotary clubs in Europe, America and Australia.

Described as a "domineering figure" the prosecutor said Thomas Henderson was "the boss from beginning to end."

"His character clearly divided opinion, it was not possible to be neutral about him. To put it bluntly you either loved him or hated him.

"Variously described as autocratic, arrogant, charismatic and intolerant of regulations... He was and is very much a can-do man.

"There is no doubt his personality, commitment and energy were responsible for the charity's growth and success, but it also had a negative effect as well.

"He was described as suffering from 'founders syndrome' having started it from his garage he regarded it as his personal property.

"One witness said he treated ShelterBox as his personal fiefdom."

Mr Hornsby explained many of the trustees were in awe of Thomas Henderson and were reluctant to confront him.

His son John is an engineer and inventor and developer of outdoor products and started a number of companies, including Camping  Solutions Ltd, Ocean Fabrications and Steelworks.

He was later described by his father as "part of the DNA of ShelterBox."

The court heard he began supplying the charity in a very small way, but there already "rumblings it was being run in an incestuous manner."

Henderson founded the charity in 2000 and was appointed OBE in 2010 for his work.

HRH The Duchess of Cornwall became the charity's President and Royal Patron in August 2007.

Darren Gervis, of Meadowside, Mosterton, Beaminster, Dorset; Thomas Henderson, of Barbican Way, Helston; and John Henderson,  of Copper Hill, Hayle, deny conspiracy to commit fraud between 15 January 2007 and 31 December 2012.

The trial continues.