Police have launched an investigation into allegations that a large amount of money has been stolen from Harbour Gardens Ltd., the company which refurbished a luxury condominium complex in Paget.

The Royal Gazette understands that Commercial Crime Unit detectives are investigating an allegation that more than $100,000 is missing from the company.

A Police spokesman told The Royal Gazette yesterday: “I can confirm there is an investigation that is at an advanced stage dealing with Harbour Gardens into an allegation of theft.”

Harbour Gardens Ltd. was set up in October 1995 to convert the pool wing of the former Palm Reef Hotel on Harbour Road into nine upmarket townhouses selling for $570,000-660,000.

The directors of the company are leading businessmen Arthur Jones, the owner and director of Coldwell Banker JW Realty, and Fraser Butterworth, the president and secretary of the Institute of Bermuda Architects.

Purchasers of the properties were given 999-year leases and became shareholders in Harbour Gardens.

It is understood a Police inquiry began earlier this year and that some of the townhouse owners have been interviewed by detectives seeking information about the claims.

The project has been the subject of a number of legal skirmishes, with civil writs being issued against the company and by it.

In May 1999, J. Donald Aguiar, Anne Spurling, Brian Jones, and Kenneth Spurling filed a writ against Mr. Jones, Mr. Butterworth and Harbour Gardens Ltd..

In November 1998, Bermuda Tech Ltd. filed a writ against Harbour Gardens, but this was discontinued the following year.

In December 1997, Global Construction Ltd. filed a writ against the company and Design Ltd.

Harbour Gardens has also taken legal action against others and has issued a series of writs to settle financial disputes.

In July 1996, less than a year after the company was set up, it filed a writ against the Palm Reef Hotel. In November 1998, Harbour Gardens issued a writ against the Warwick Hotel Company Ltd.

The company's annual returns at the Registrar of Companies show that it was set up in 1995 with 12,000 $1 “Founders' Shares” with full voting rights for each share.

As of December 31, 1997, there were were 12,000 $1 “Founders' Shares” with full voting rights and 9,000 $1 “Class A” shares with no voting rights.

By December 31 last year, the records show there were 12,000 $1 “One Class Common” shares with one vote per share.