A property tycoon accused of murdering a business associate once offered to pay to make him bankrupt, a court has heard.

Nicholas van Hoogstraten described Mohammed Raja as a "major fraudster" in a letter to solicitors in 1995.

"I will be happy to pay the costs of bankruptcy to put an end to his reign of terror," Mr van Hoogstraten had stated in the letter read out at the Old Bailey on Friday.

Mr van Hoogstraten denies masterminding the murder of Mr Raja, 62, in July 1999.

I was very sorry and concerned about it (Mr Raja's death)

Mr Van Hoogstraten

Mr Raja was stabbed and shot at his home in Sutton, Surrey.

The prosecution alleges Mr van Hoogstraten, 57, hired two contract killers to carry out the assassination after he and Mr Raja fell out over business debts.

But the tycoon dismissed his letter to a firm of solicitors acting on behalf of a building society, as nothing more than a reflection on his feelings about Mr Raja at the time.

In the letter he suggested they bankrupt his one-time associate offering to pay legal costs.

Mr Raja was taking civil court proceedings against Mr van Hoogstraten, alleging fraud, the jury has heard.

'Not acrimonious'

But Mr van Hoogstraten told the jury he had only seen Mr Raja two or three times after his business involvement ended with him in 1993.

He maintained the civil action was never acrimonious.

"My state of mind about this whole nonsense with Raja has not changed since 1993," he told David Waters, QC for the prosecution.

"You are trying to build a house of bricks and the bricks have not got any straw in them."

Prosecutors allege Mr van Hoogstraten hired two hit men

He could not recall when he first heard of Mr Raja's death.

"It was not the highlight of my life. I was very sorry and concerned about it, but I did not for a minute think that anyone would be coming round to see me in connection with it," he told the court.

Mr Raja, he said, had been involved in another law suit with another businessman, over a property in Hove which had been acrimonious.

'Strong arm tactics'

The court heard of Mr van Hoogstraten's relationship with Robert Knapp, who is alleged to have carried out Mr Raja's killing with David Croke, on his behalf.

The property tycoon had recommended Mr Knapp to another landlord who was having trouble with tenants.

Questioned about his tactics, Mr van Hoogstraten said on occasions he had sent round three or four builders to make sure people moved out.

He said usuaIly unleashing dogs on people was enough.

In one case, the inhabitants of a house had leaped from the first and second floor windows to escape, he said.

Mr van Hoogstraten, 57, of Uckfield, East Sussex, also denies conspiring with David Croke, 59, of East Moulsecoomb, Brighton, and Robert Knapp, 55, of Abbeyfeale, Co Limerick, and others to murder Mr Raja between January 1 and July 3, 1999.

Mr Croke and Mr Knapp deny murdering Mr Raja.

The case continues.