A GWENT man who amassed a "small fortune" and lived in the lap of luxury was ordered to pay back more than £700,000 after admitting cheating the taxman.

Gareth Edward Steed, 41, of New Inn, who in 2007 was handed a six-month prison sentence suspended for two years after admitting a charge of cheating the revenue, has now been given six months to pay back his ill-gotten gains or face four years in prison.

Cardiff Crown Court heard Steed lived the high-life, including luxury cars, holidays to the USA and Caribbean and buying and renovating a house in Pontypool, complete with a swimming pool, valued at £500,000.

He was ordered to repay £707,200 under the Proceeds of Crime Act (POCA), which allows police and customs to seize cash made illegally.

The court heard Steed benefited from his criminal lifestyle to the tune of £863,303.

Steed pleaded guilty of cheating the revenue at Cardiff Crown Court in April 2007 after being arrested in 2005 on suspicion of money laundering.

Police say they searched his house and a warehouse, finding counterfeit watches and clothing as well as mobile phones contaminated with drugs.

Evidence from Revenue and Customs showed Steed had not declared any income for many years and was making phoney benefit claims.

Following his conviction, police examined his finances under the POCA, revealing he had two homes, a gym business and a collection of cars, all worth £707,200, and used this to set the amount he has to pay back.

Giving evidence, Steed admitted criminal offences going back as far as 1994.

Judge Phillip Richards said: "The overall picture supports the contention that more likely than not, Steed was involved in criminal conduct over and above that to which he pleaded guilty."

DCI Chris Dodd, head of Regional Asset Recovery Team (RART) in Wales said: "Mr Steed amassed a small fortune from a variety of offending which pervaded all aspects of a dishonest lifestyle. His conspicuous wealth was an affront to the law-abiding community in the area.

"Having been convicted earlier this year for Cheating the Revenue, it would have been manifestly unreasonable for Steed to be allowed to retain the proceeds of his offending."