Michael Kors Traveler
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He plans to open shops selling high class evening wear and lingerie.
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Magistrates told police they could hold on to the money while investigations were made to see if George Reynolds, originally from Roker, had been involved in any illegal dealings.
"I had the money in my car because I'm using it for a new business I have set up and I deal in cash because that is what I'm used to."
He told the court his house was sold as part of the club buy out by the Sterling Consortium group.
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The public examination of its finances was called by the Official Receiver to help liquidators Deloitte and Touche recoup some money for creditors. Mr Reynolds claimed he was owed at least 7million from the sale of GRUK to Vertex.
During a civil hearing at Darlington Magistrates' Court yesterday, Graham Duff, for Durham Police, applied for the money to be retained while investigations into where it originated from were ongoing.
Magistrates granted the police permission to hold on to the money until midnight, July 14.
The arrests come weeks after Mr Reynolds announced he was putting his turbulent times Michael Kors Wallet Gold
in charge of Darlington Football Club behind him to build a new business in the fashion industry.
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Reynolds was grilled about his business dealings in court in January when he gave evidence into the collapse of one of his former companies George Reynolds UK (GRUK).
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Mr Duff, for Durham Police, said time was needed to investigate where the cash had come from and added there was no suggestion, at this stage, Mr Reynolds had acted illegally.
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Mr Reynolds told the court: "I have nothing to hide Michael Kors Traveler I have done nothing wrong and I have the documents to prove it.
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He said police had been alerted by officials from the Co operative Bank earlier this week after Mr Reynolds asked to withdraw 507,000 from his personal account.
Officers swooped on a car containing one time Darlington FC chairman Mr Reynolds, 68, former football club director Richard Tennick, 57, both from Sunderland, and his personal assistant Ian Robinson, 42, as it travelled near Bishop Auckland, late on Monday night.
Mr Reynolds claims it is his own money, from the sale of his home at Witton le Wear, County Durham, for 1million.
It followed months of uncertainty over the club's future. The Quakers plunged into administration with enormous debts on December 23 with the nightmare ending for supporters and the creditors only last week when Football League bosses approved the Sterling Consortium's takeover of the club.
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George leaves court
The County Durham firm went into voluntary liquidation with debts of 4.7million in October 2002.
Police believe the money had been transferred from an account belonging to Darlington Football Club now owned by the Sterling Consortium.
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