The flags were erected in a mixed estate in Holywood, County Down
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Four men have been sent to jail for displaying loyalist paramilitary flags in County Down.
They were the first prosecutions of their kind under the Terrorism Act.
The offences date back to last summer when Loyalist Volunteer Force flags were erected in the Loughview housing estate in Holywood.
Alan Robert Ferguson, 18, from West Link, Holywood, Stephen Walker, 18, from Priory End, Holywood, and Robert Warnock, 20, of Glendu Park, Belfast, were jailed for four months.
Jamie Clarke, 18, of The Green, Holywood, was jailed for five months.
The four had earlier denied various charges of displaying LVF flags in such a way as to arouse suspicion they were involved with the paramilitary organisation.
A solicitor for one of the four, Jamie Clarke, claimed they had fallen victim to a police crackdown after media reports highlighted the concerns of residents in the mixed Loughview estate.
The offences were committed on 11 June 2003 when, at various times, police saw the men in possession of a black Loyalist Volunteer Force flag.
Clarke was also seen displaying an LVF flag on 12 July.
The four had been convicted earlier this month, but sentencing at Bangor Magistrates Court had been put back until Wednesday.
PSNI Inspector Michael Currie welcomed the jail setences, saying the majority of people in Holywood wanted to live free from sectarianism.
Alliance Justice spokesperson Stephen Farry also welcomed the sentencing.
"These sentences set an important precedent and send out a powerful
message," he said.
"If people are going to display paramilitary flags, they are now clearly exposing themselves to the risk of a criminal prosecution, with the potential for a custodial sentence."