community as squeaky clean, but details of alleged large-scale money laundering emerged as the biggest news story over April and May.

The Royal Gazette revealed that both the Federal Bureau of Investigation and the US Securities and Exchange Commission were looking into the allegations.

Shareholders in FNN alleged that top executives with Los Angeles-based Financial News Network, which holds shares in Bermuda-based Intex, had siphoned millions of dollars into offshore bank accounts during the 1980s.

Former Canadian stockbroker Mr. John Belton said he was assisting the FBI with their inquiries into possible widespread financial fraud between Bermuda and US companies associated with former Intex chairman Dr. Earl Brian. Intex, which was formed to develop computer software for international futures trading, was a part of the investigation, said Mr. Belton.

Intex's former chief financial officer Mr. David Thompson denied that Intex was involved in any wrongdoing.

At around the time the news broke locally, Intex ended a decade of business woes by finally going bust, with debts of around $1.6 million.

While this investigation into sophisticated criminal shenanigans was going on, two crimes more basic and heinous were committed in Bermuda during the two month period of this business review.

The most tragic was the Easter killing of German tourist Miss Antja Herkommer, 27, at the Maritime Museum in Dockyard. Bermudian Leroy Elmer Burgess was charged with her premeditated murder.

The second crime involved the armed robbery of a security van outside the Heron Bay MarketPlace when masked raiders escaped with $10,000.

Lord Waddington, 62, whom it was announced would take over as Governor this summer from Sir Desmond Langley, must have wondered what he was letting himself in for. The once-renowned College Weeks in Bermuda hit an all-time low this year with just 1,800 students arriving for the six-week spring college break. The number was a far cry from the late 1970s and early 1980s when College Weeks attracted more than 10,000 students a year.

On a lighter side, Australian inventor Greg Jefferys, a Brisbane-based farmer, announced he making available to Bermuda a machine for blitzing cockroaches with a lethal 6,000 volts. "Cockroaches are incredible gluttons and that's their downfall -- they are attracted to the special food in the machine and stay in one spot until it's eaten,'' said Mr. Jefferys.

"Their feelers touch the top plate, their legs are on the bottom plate and -- whammo -- fried cockroaches.'' In the courts Litigious businessman Mr. Mark Hardy filed a writ seeking $90 million damages from three of Bermuda's top accountants, David Lines, Peter Mitchell, and Kirkland Cooper, their firm Cooper and Lines and associated companies for "conspiracy'' to injure his business interests.

The legal action was in connection with the accountants' work as liquidators of Mr. Hardy's Bermuda-based insurance interests, Forum Re., Focus Insurance and Aneco Re., which are all in liquidation.

Mr. Hardy believed the accountants made decisions during their liquidation activities which have damaged his other business interests and lessened his ability to meet his financial commitments to creditors of his Bermuda firms.

It was disclosed that the Supreme Court had over the last six months ordered troubled businessman Mr. Llewellyn Peniston to pay $776,000 to several people and organisations he owes money to.

One of the awards was made in favour of his former business partNner Mr.

Robert Thomson, who also announced he was helping to form a new local tour boat company.

Mr. Thomson's partners in Reef Roamers, which is operating three boats, are Mr. Donald Morris, of Looking Glass Cruises, and investment company owner Mr.

Robert Rans.

Meanwhile, an investigation by The Royal Gazette into the affairs of former Bank of Bermuda loans officer Mr. Arnold Todd, who is being sued for $6 million by the bank, revealed allegations that he authorised a $275,000 unsecured loan to a local tour boat company he secretly held a 20 percent stake in.

Mr. Todd, who is under investigation by the Police, was alleged to have held the stake in Bermuda Excursions, which was run by Mr. Peniston and Mr.

Thomson, through a nominee.

Mr. Todd denied he was a shareholder, although both Mr. Peniston and Mr.

Thomson, said he was.

Mr. Todd was suspended from his job at the bank in December, 1990, and resigned three months later.

Getting smaller Purvis Ltd., which used to be one of the largest group of companies in Bermuda, sold its furniture side of Office Equipment to Furniture Flair, creating speculation as to the future of Office Equipment and Purvis as a whole. Only the month before, Purvis had announced that it was selling its core business, Purvis Distributors, to BGA. Purvis chairman the Hon. Sir John Sharpe denied that the group, whose work force had been slashed from 130 to 70 in a matter of weeks, was gradually being wound down, although he gave a broad hint that the rest of Office Equipment might be sold if the right offer was made. "We've got to make decisions in the best interests of shareholders and staff in the foreseeable future,'' he said.

Company results Scandinavian Re., an open market specialist underwriter dealing with all aspects of financially-oriented insurance and reinsurance products, reported a profit of $10.6 million for fiscal 1991 -- a 56.6 percent increase on the year before. The improvement was largely due to a 60.1 percent increase in premiums earned from $15 million in 1990 to $24 million in 1991.

Finite risk insurer Centre Re., after a year of unusually-high acquisition and ownership activity, reported a profit of $48.2 million for 1991 -- an increase of 15 percent on the previous year.

Assets jumped by 32 percent to $1.74 billion and its premiums went up from $166.2 million to $502.7 million. With its new subsidiary, CentreLine, the two companies had combined assets of $2.99 billion.

Excess liability insurer ACE Ltd. reported a profit of $89.4 million for the first six months of fiscal 1992 -- a drop of 17 percent.

Written premiums increased by 25 percent to $160.4 million in the six months to March 31, 1992.

ACE's profits were affected by increased strengthening of loss reserves and a reduction in inves ment returns compared with 1991, when levels were unusually high.

Texaco's Bermuda-based captive Heddington Insurance reported a loss of $24 million for fiscal 1991 -- the first year the company had failed to make a profit.

The firm's net income dropped by $83.7 million compared with 1990, when it made a profit of $90 million.

Provision for losses and related expenses went up by 87 percent to $83.5 million. CEO Mr. Robert Golden blamed the performance on this and increased investment in oil and gas exploration.

Belco made a profit of $11.5 million for 1991 -- up 8.9 percent on the year before. Although the company's general sales of electrical energy were up by $5.9 million (six percent) to $100.2 million, there was a general trend towards less consumption if new sales to the US Navy were excluded.

Casino talk Shadow Environment Minister Mr. Julian Hall MP touted the possibility of allowing casino gambling in Bermuda, saying it would spruce up the Island's image and earn millions of dollars foreign currency.

All he wanted was for politicians to at least consider the idea, instead of continually refusing to discuss the matter.

"If Bermuda is regarded by the modern tourist as a bore we must make it more exciting,'' said Mr. Hall, who stressed his views were his own and not necessarily those of his party, the PLP.

A straw poll of the public by The Royal Gazette showed that a surprisingly high 50 percent supported casino gambling for Bermuda.

The PLP's Shadow Tourism Minister Mr. David Allen said he was against the idea.

But Mr. Hall found support from surprising quarters, notably from Independent MP Harry Viera and UBP supporter Mr. Edgar Wilkinson.

Real estate blues Banks and other lending institutions are seizing more properties than ever from customers who cannot meet mortgage repayments.

Mr. J.J. (Jack) Outerbridge, president of real estate firm L.P. Gutteridge Ltd., said: "Lending institutions only call in loans as a last resort but some people are so far Nbehind with repayments that they are beyond hope.'' In some instances, borrowers had been allowed to getaway with paying little or no interest for up to four years, he said.

Meanwhile, real estate agents on the Island said there were signs that the property market was slowly beginning to pick up after several months of inactivity.

The numbers of inquiries from people about properties had increased over recent weeks, they said.

They added that banks had plenty of money to lend at the moment but said that people weren't in a position to take advantage of it because of uncertainties over jobs.

As one realtor said: "The days of wheeling and dealing are over for good because the market's not there anymore.'' Other news Plans for Bermuda's own airline died during April and May, for the time being at least.

Banker Mr. Paul Rosdol, who was trying to raise funds for the scheme, said that, despite initial excitement, fear of competition from British Airways had left the proposed airline without the support of Bermuda's financial establishment.

The airline would have linked Europe and the Caribbean, with Bermuda serving as a hub in the middle.

Mr. Harry Soares, who resigned as Minister of Youth and Sport earlier in the year, denied that he was in serious financial trouble despite suffering heavy losses from his tourist submarine business.

Elbow Beach hotel reopened to the noise of road drills and champagne corks following its $25 million revamp.

A new air cargo-only service between Tampa and Bermuda was started by Bermuda Air Charters Ltd, operating a DC-8 with a capacity for 85,000 pounds every Tuesday.

BAC's vice president Mr. William Forbes said: "The bad old days of cargo being bumped off planes at the last minute should be over.'' Local traders were overjoyed.

The recent Census revealed that Bermuda's average household income fell in real terms between 1988 and 1991. While income grew by 16.4 percent to $48,588 during the period, inflation, at 16.6 percent, ran even higher.

Sousa's Landscaping and Floricultural Services went bust with the loss of a dozen jobs.

First Bermuda Securities started trading local stocks on a daily basis -- the first time it's ever been done.

FBS vice president Jeff Conyers said: "There's not enough volume at the moment but it's up to us to create it. We have to go out there and market a product.'' A short while later, Bermuda's three banks announced plans to incorporate the Bermuda Exchange and upgrade it, after years of talking about it and doing nothing.

The Government announced it was seeking a fifth cruise ship for Bermuda to operate from May, 1994. Local traders, who have complained that Hamilton is too dead when cruise ships aren't in, welcomed the news.

Bermuda-based OOC Ltd., run by oil magnate Mr. John Deuss on behalf of the Omani government, helped secure the world's largest oil deal, which will generate $230 billion of oil over next 40 years, between Kazakhstan and Chevron, a US oil giant. Premier the Hon. Sir John Swan hailed Bermuda's role in the deal.

The loss-making Robin Hood pub got a new operator -- Mirage Ltd., which is owned by Bank of Bermuda loans administrator Mr. Rick Olson, accountant Mr.

Gary Sheppard and their two wives.