The Police raided three banks and two Government departments during inquiries into the alleged theft of more than $60,000 by Health Minister Nelson Bascome, Magistrates' Court heard yesterday.

The MP is accused of misappropriating a Bank of Bermuda loan intended to start a business by directing it into his own pockets instead. He denies any wrongdoing, and evidence got underway in his trial at Magistrates' Court yesterday after a preliminary day on Monday of legal arguments.

According to the case for the prosecution, Bascome stole $40,080.52 entrusted to him by the Bank of Bermuda for business purposes between September 24, 2003 and February 19, 2004.

It is further alleged that he stole $20,000 from the Natural Business Company, of which he was a director, in March 2004.

Senior Crown counsel Paula Tyndale explained on Monday that the first count relates to an arrangement between Bascome and his business partner, Robert Smith.

Bascome, she alleged, "fraudulently converted to his own use" a total of $40,080.52 entrusted to him by the bank.

The money was, she said, intended to meet expenses associated with the start-up of a business by Bascome and Mr. Smith to distribute an invention of Mr. Smith's called the Honae Water Filter and to do other general construction work.

Ms Tyndale claimed that between September 24, 2003 and February 19, 2004, Bascome received two payments of $50,000 from the bank into one of his personal banking accounts, making up a total loan of $100,000.

However, she alleged that instead of using all the funds for this purpose, he used $40,080.52 for his own benefit instead.

The prosecutor went on to say that the entirety of the loan was repaid from a second business start-up loan granted to Bascome and a new company formed by him and Mr. Smith — the Natural Business Company.

Bascome, she said, was a director of the company and received $20,000 on behalf of it relating to contracts of repair issued by the Government of Bermuda.

Again, she said, funds were paid into one of the his accounts and he used them for his own benefit and not that of the company as they should have been.

Yesterday, Ms Tyndale called the first witness for the Crown, Detective Constable Paul Ridley of the Bermuda Police Fraud Unit, the officer in charge of the investigation.

He told the court that it was launched on May 9, 2005 as a result of a complaint from Mr. Smith.

Numerous search warrants were subsequently executed at Capital G Bank, the Bank of Butterfield, the Bank of Bermuda, and the Government departments of Works and Engineering and Small Business Development.

Det. Con. Ridley said that during the searches, he obtained financial data relating to Bascome and the Natural Business Company, including cheques.

He also obtained documents from the Accountant General.

The case continues.