Warrants given to fraud squad detectives to search the offices of law firm Appleby Spurling and Kempe (AS&K) were invalid, a lawyer argued yesterday.

Police investigating the alleged use of a bogus trust to allow a non-Bermudian to acquire a luxury home searched two AS&K offices, as well as the home of Sterling Management in Hamilton and the home of tennis player Norberto Herrero last summer.

Detectives secured the search warrants from Magistrate Edward King after alleging the Labrador Trust was set up as a "sham" vehicle to allow Mr. Herrero to acquire the home in Harbour Road, Paget, from former Mayor of Hamilton William Boyle, thus defrauding the taxpayer of $660,000 in land sale tax.

Supreme Court heard last week Police believe Mr. Herrero, his wife Kathleen, Mr. Boyle, AS&K lawyer Scott Swainson, and Bruce and Margaret Hern of Sterling Management, who are trustees of the Labrador Trust, conspired between 1995 and 2002 to defraud Government.

Delroy Duncan, for the six individuals, argued before Puisne Judge Ian Kawaley yesterday that the warrants were defective and should be quashed. No one has been charged in connection with the investigation.

He said suspicion, belief and fact had to be on the search warrants for them to be valid, and those issued to Detective Sergeant Edward Davies of the commercial crime unit failed this test.

"If Sgt. Davies does not mention belief that the documents (seized) will afford evidence, it ends there," said Mr. Duncan.

"The warrant is defective because it does not pass the important test of reasonable grounds for belief."

Mr. Justice Kawaley said: "It isn't the case that this isn't a case that there is real doubt about the potential theoretical linkage of the trust documents with the offence and the Crown conceived it."

But Mr. Duncan replied: "You have got to allege a contravention of some law and say the conduct of the parties (subject to the search) caused a contravention of that law."

David Kessaram appears for AS&K, Acting Director of Public Prosecutions Kulandra Ratneser appeared last week representing the Police and Solicitor General Wilhelm Bourne appears for Magistrate Mr. King.