Barry Lehaney arrives at the Old Bailey

A woman who claimed she was sexually assaulted by former MP Neil Hamilton and his wife Christine had "kiss and tell" fantasies, a court has heard.

Pensioner Barry Lehaney, who was in correspondence with Nadine Milroy-Sloan, said she dreamed of selling a story to the Sunday newspapers.

"In her conversation, her operation was to make a few quid out of it," he told the Old Bailey in London.

"She wanted to meet anyone with money but they had to be married otherwise it would not work."

The trainee college lecturer told police she was subjected to a sexual attack by the Hamiltons and 61-year-old Mr Lehaney.

'Lady Joan'

The mother-of-four, from Peterhouse Road, Grimsby, Lincolnshire, denies two offences of perverting the course of justice.

Mr Lehaney said he had been exchanging e-mails with Ms Milroy-Sloan for six months.

She called herself "Sexy-babe" while he posed as "Lady Joan" and "Foxy Jan".

Ms Milroy-Sloan denies perverting the course of justice

He told the court that he also told her that he worked as a chauffeur to "Sir James and Lady Joan Hamilton".

He said Ms Milroy-Sloan had sent him a topless picture of herself which she had taken in a photo-booth.

Mr Lehaney said he agreed to meet her for the first time in May 2001.

When she arrived at his home, she wanted to meet the fictitious Lady Joan.

"I said 'She is not here. She does not exist'," Mr Lehaney told the court.

He said Ms Milroy-Sloan was convinced Lady Joan was Christine Hamilton and she "wanted to get her".

"It was lunacy," he said.

As well as clearing the Hamiltons of any involvement in the case, police dropped any action against Mr Lehaney.

The case continues.