Carl Beech, previously known by the pseudonym “Nick”, is on trial accused of making up claims that high-profile figures, including politicians, sexually and physically abused young boys in the 1970s.
But his story fell apart when Northumbria Police found he had set up an encrypted email account for Fred.
Tony Badenoch QC, prosecuting, said: “Carl Beech purported to be speaking with another person, Fred, and ultimately Fred went on to contact, through email, the Metropolitan Police. Or so it seemed.
“When investigations were completed by officers - again using international co-operation - they went to the email provider.
“It was an encrypted email account. The encryption on the email address for which Fred was corresponding had not been set up by Fred.
“The person behind the encrypted email account was Carl Beech.”
Mr Beech denies 12 counts of perverting the course of justice and one of fraud – relating to a payment in 2013 of £22,000 for criminal injuries.
Mr Badenoch said the defendant used the criminal injuries pay out as a deposit on his Ford Mustang convertible.
Mr Beech first came forward to tell Wiltshire Police and then the Metropolitan Police that he had been abused as a child in the 1970s by a group of powerful men, including former prime minister Sir Edward Heath, the head of the Army and the chiefs of MI5 and MI6.
He also claimed the paedophile ring, which he said included the ex-MP Harvey Proctor, had murdered three boys.
The father-of-one had drawn sketches that appeared to be related to the abuse he claimed to have suffered, including demons and smaller figures surrounded by red.
Mr Badenoch said Mr Beech’s best man John was tracked down, but he had nothing to do with the email account that was used to contact the Metropolitan Police.
The court heard that once the £2m Operation Midland ended with no arrests, Northumbria Police were tasked to investigate Mr Beech.
The trial continues.
Press Association contributed to this report