$900,000 to pay a former business partner.

Law firm Mello Hollis Jones and Martin filed a writ for bankruptcy proceedings in the Supreme Court yesterday.

The action comes nine years after Police swooped on Todd's Front Street office, seizing files to begin a fraud case.

Todd, a former Bank of Bermuda loan officer, was cleared of six criminal charges for theft in a nine-week trial in November 1996.

Eleven other charges of fraud and false accounting were left to lie on the file.

But Todd was ordered to pay more than $500,000 to 74-year-old Frederick Hendrickson last September.

The cash was to cover land, building materials and back rent he was said to have owed following a property dispute.

Puisne Judge Vincent Meerabux ruled in favour of Mr. Hendrickson, who brought eight counts of breaching agreements against Todd.

But he found in favour of Todd on the ownership of a truck and cement mixer.

Todd, from Southampton, was ordered to pay $538,845.19 plus interest to his former partner.

He was also ordered to pay $270,000 plus interest to complete the purchase of three plots of land at Town Hill, Flatts, after agreeing a $100,000 fee with Mr. Hendrickson.

And Todd, represented by lawyer Michael Scott, was told to pay $97,135 plus interest after selling the three developed properties for $994,970.

The judge said the total cost of buying and building the three houses had been $800,700.

A lawyer at Mello Hollis Jones and Martin said last night: "We have issued a bankruptcy notice against him, putting him on alert that if he doesn't pay we will be petitioning the court to make him bankrupt.'' Mr. Todd could not be contacted for comment.

Court action: Arnold Todd Graphic file name: TODDI