The prosecution at Nottingham Crown Court today dropped the charges against 22-year-old Janine Fearick, of Jennsion Street, and her 44-year-old mother Jeanie Fearick, of Violet Hill in Mansfield.

Janine Fearick was the fiancee of 19-year-old Pte Andrew Cutts from Blidworth, who was killed in Helmand province in 2006, the court was told.

The money involved was a lump sum of over £62,000 from the Ministry of Defence and a pension of just under £10,000.

Janine Fearick's barrister Caroline Bradley told the court that before her client received the £62,000, she had already made an agreement with the dead man's family and transferred the money to his twin brother.

Prosecutors said that Janine Fearick did not meet the criteria a serviceman's partner needs to satisfy to qualify for a payout after his death. But she said the pair intended to marry and she had been encouraged to make the claim by the Army.

Judge Michael Stokes, the recorder of Nottingham, said: "Pte Cutts undoubtedly gave his life carrying out his duty to his country and it is a tragedy it was ever started."

The judge said to the two women: "You are both owed an apology by somebody. You both leave the court without a stain on your characters."

Not guilty verdicts were entered and clapping broke out among supporters in the public seats in court.

Earlier the judge had said that if they had been provable allegations and Janine Fearick had been convicted, she would have been going to prison.

The court was told that Pte Cutts probably lost his life as a result of 'friendly fire'.