A teenage dealer caught on camera threatening a drug user with a knife has been jailed.

James Goulding was filmed by a concerned onlooker as he produced the five-inch lock knife in South Park, the court heard.

The 19-year-old was rowing with a group of three men who were buying heroin and crack cocaine, prosecutors said.

Minutes later police swooped on Goulding as he got into a taxi, the court heard. He was found with two knives, heroin and crack cocaine, £1,000 cash and two mobile phones.

At Chester Crown Court on April 25, Goulding of Finch Lane, Liverpool, admitted two charges of possession of class A drugs with intent to supply, possession of criminal property and two charges of possession of a bladed article.

He also admitted possession of a bladed article and using threatening behaviour relating to an incident in Blackpool on June 21, 2015.

Jo Maxwell, prosecuting, said: “On March 27 at 11am a female witness was at home which overlooks South Park. She saw two males arguing in the park about 50m from her. She saw a third male approach and give back a package.

“The argument escalated and the witness decided to start recording it on her phone. She saw the defendant holding a knife move towards one of the males.

“Over about three minutes he kept moving towards one of the males forcing him to step back to avoid the knife, which was a lock knife about five inches long.

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“Then at 11.30am a taxi driver was called to a property on Parkgate Road. The defendant got in and paid upfront.

“Police, who had been notified of the defendant’s whereabouts, then stopped the taxi on Pitt Street.

“A folding pocket knife was recovered from the back of a taxi. The defendant was searched and found with a kinder egg with wraps of drugs, two mobile phones and £1,000 in cash.”

Julian Farley, defending, said Goulding had been caught ‘red handed’ by police.

He said: “The video footage shows the incident involved three known users. There was an argument about the quality of the drugs.”

Sentencing Goulding to 28 months in a young offenders institution, Judge Neil Flewitt said: “While on bail for two serous offences you were drug dealing and became involved in an altercation and threatened someone with a knife.”