than US$30,000 for someone she refused to name, was spared a prison sentence in Supreme Court yesterday.

But Puisne Judge the Hon. Mr. Justice Ward warned that anyone else who comes before him for such an offence "can expect a custodial sentence if there is an inference the money was for the purchase of drugs''.

The Crown had asked the court to hand down a sentence stiff enough to deter anyone considering illegally changing local money into US cash for those involved in the drug trade.

Crown Counsel Mr. Stephen Harrison said foreign currency violations were on the rise with 19 such cases involving more than $1 million before the courts last year, and 22 involving nearly half a million dollars currently under investigation.

Kenna-Lee Marie Blakeney was charged with 11 counts of making false statements on a Bermuda Monetary Authority foreign currency purchase form between August 27, 1991, and March 24, 1992.

Mr. Harrison said she obtained $32,700 from various banks by changing local money into the maximum amount of US currency ($2,987) allowed for travel purposes. However, she never left the Island with the cash.

Police obtained a search warrant for her home on April 2 and seized her passport, Mr. Harrison said. Blakeney admitted falsely filling out the forms without any intention of travelling abroad.

Mr. Harrison said she told Police someone offered to pay her $100 for every $3,000 she changed into American money, sometimes paying her in cocaine.

Mr. Harrison said Blakeney told Police she was unemployed and used the money to pay bills and buy food.

The court heard she had no past criminal convictions and would not give the name of the person because she feared for her and her family's safety.

Lawyer Mr. Richard Hector, assisting Blakeney's lawyer Mr. Khamisi Tokunbo, argued for "expert'' evidence by a Narcotics Section officer to be inadmissible.

He said Sgt. Stephen Rollin's evidence that those involved in the drug trade "frequently'' have to exchange local money to buy more drugs for sale or export it was "irrelevant'' and an attempt to "inflame'' the judge's mind to impose a "draconian'' penalty on Blakeney.

But Mr. Justice Ward said he "knew'' the money was for the purchase of drugs and ruled the evidence was admissible.

Mr. Tokunbo submitted Blakeney was a victim of her own ignorance and asked for a non-custodial sentence.

Mr. Justice Ward ruled Blakeney ought to have known the currency exchanges she made "were not for innocent purposes''. However, he said a prison sentence was not appropriate in her case because there were several mitigating factors in her favour including her genuine remorse, full cooperation with the Police, guilty plea and the positive things said about her by her former employer and in a social inquiry report.