Arnold Todd.

The information was in a written judgement from the court, explaining a decision it made in Mr. Todd's favour last November.

The three Appeal Court judges ruled that two bank customers' lawsuits against Mr. Todd must wait until it is decided whether to prosecute him for alleged shady loan deals.

Mr. Todd, former personal banking manager at the Bank of Bermuda, was the subject of a Police complaint by the bank in March, 1991.

The complaint was in connection with his alleged irregular lending practices.

It eventually led to a search warrant being executed on his home in April, 1991.

Police began a complex investigation apparently involving "numerous'' bank customers.

Then in February, 1992, customers Mr. Derrick Burgess and Mr. Merkell Smith brought lawsuits against Mr. Todd.

The lawsuits contain allegations of theft, said the court judgement written by Appeal Court judge the Hon. Mr. Justice da Costa.

It is understood the lawsuits relate to alleged non-payment of loans. In June last year, Mr. Todd asked Supreme Court to put the lawsuits on hold until the authorities decided not to pursue criminal charges against him, or until a criminal trial was over.

He was worried that publicity from the Burgess and Smith cases could influence people who might become jurors in a criminal trial.

Supreme Court judge the Hon. Mr. Justice Ward, now Chief Justice, refused Mr.

Todd's request.

Last November Mr. Todd went to Appeal Court, which overturned Mr. Justice Ward's ruling.

Mr. Justice da Costa said the Appeal Court intended no criticism of Mr.

Justice Ward. A legal point raised in Appeal Court had not been raised in Supreme Court, he said.

Mr. Justice da Costa said the picture was complicated by a case brought against Mr. Todd by the bank in November, 1991.

"The bank alleged that Mr. Todd had `misappropriated and/or fraudulently diverted to his own personal use and benefit monies advanced on behalf of the bank, intended as loans for the bank's customers.'' A Police file on the Todd affair has not been sent to the Attorney General's office.