A Bermuda resident has been summoned to the Channel Islands to testify in Jersey's biggest and most complex fraud trial.

Bryan Gudgeon, who lives on Hinsons Island with his wife Brenda, was scheduled to begin testifying on Tuesday in the case against a foreign exchange dealer, 43-year-old Robert Young who denies six charges relating to "false, misleading or deceptive'' statements.

Mr. Young lost more than $10 million of his clients' money, but over five years received nearly $6 million in payments.

Mr. Gudgeon, described as a property dealer from Bermuda, was at the head of the list of international investors descending upon Jersey this week.

The Financial Times (FT) this week described the Bermuda resident as "Young's largest single investor, putting $10 million into (Young's) foreign exchange schemes.'' Mr. Gudgeon was also said to be one of the few investors to emerge with a profit.

Young was said to have been paid $2 million in commission by the investment manager representing some 90 international clients.

But he and his wife Maureen, also a trader, received an additional $3.8 million, the court has been told, alleged to have come through a secret commission-sharing deal with UBS's Jersey subsidiary, Cantrade Private Bank, through whom Young placed all his deals.

Prosecutors allege that Young, who was based in Nottingham, England, before moving to Jersey in 1991, made misleading statements to investors reporting profits above $16 million.

Also accused is 49-year old Alfred Williams, a former tax advisor and partner with Touche Ross' Nottingham branch, who is alleged to have audited Young's false trading profits.

Williams denies ten charges of either making, or recklessly making statements that were misleading, false or deceptive.

Chief prosecutor Cyril Whelan took three hours to outline his case this week, in proceedings scheduled to last six to eight weeks. It is the culmination of a four-year investigation that has involved fraud squad officers, London lawyers and forensic accountants.

More than a million documents are included in the prosecution's case and a computerised system is being used to provide virtually instant transcripts of evidence to the court.

The FT quoted Whelan saying, "Young had an incentive to trade investors' money frequently, regardless of whether it was profitable or not.

"He and his wife earned thousands of dollars every time they picked up the phone and placed a trade because of a secret agreement under which Cantrade shared its profits with Young.

"As he lived the life of a rich and successful foreign exchange dealer, the investors money dwindled beneath his fingers.'' Cantrade was also due to stand trial, but last month pleaded guilty to four charges of criminal recklessness by making misleading statements to investors.

The bank faces sentencing for the charges upon the conclusion of the trial involving Williams and Young.

Mr. Gudgeon is known in Bermuda as an honourary member of the International Sail Training Association (ISTA) who helped organise local talks aimed at having Bermuda host Tall Ships 2000, which involves up to 180 vessels making a round trip from Europe through the US in the year 2000.

Mr. Gudgeon was among a group of people who convinced Bermudian authorities of the substantial benefits should Bermuda be one of the ports of call.

The Government provided preliminary funding for the project in yesterday's Budget through the Ministry of Tourism for the establishment of a port committee and the production of brochures.

COURTS CTS