ex-financier Robert Brennan.

Mr. Brennan, who conducted much of his business through a company now owned by Mutual Risk Management of Bermuda, is charged with 13 counts relating to bankruptcy fraud.

The month-long trial has heard about Mr. Brennan's business dealings with Valmet, an asset management and corporate service provider company based initially in the Isle of Man and purchased a few months ago by Mutual Risk Management.

Key witness Peter Bond, the head of Valmet who obtained immunity from prosecution for his part in Mr. Brennan's dealings, has revealed how he helped Mr. Brennan allegedly hide millions of dollars from US authorities through his firm.

The court heard how the association between the two men went back to the early 1990s when Mr. Bond set up offshore trusts in Gibraltar for Mr. Brennan who lives in New Jersey.

Mr. Bond described how, in 1995, he picked up a black case from Mr. Brennan filled with $4 million in tax free municipal bearer bonds which he later sold.

He then invested the proceeds under instructions and increased their value to $20 million.

All of this happened while Mr. Brennan was declared bankrupt.

Mr. Bond told the court that when he returned to his office in the Isle of Man he counted the bonds and found 759 certificates with a face value of $5,000 each. He sold them and put the proceeds into an account at the Bank of Scotland under the name Risk Capital.

He said he created companies for Mr. Brennan with ease in offshore havens such as the Isle of Man, Gibraltar and the Caribbean where his client could take advantage of liberal tax laws and anonymity.

As foreign companies they could also buy stock at a discount in US companies and he said Mr. Brennan directed him through a series of investments.

Throughout these dealings, Mr. Brennan tried to maintain a veil of secrecy, Mr. Bond said. He told the court that Mr. Brennan reminded him to delete information on his computer twice to ensure it was gone forever and to use a false name when he telephoned.

Valmet's financial manager from the Isle of Man, David Donnelly, also testified during the trial and described how he made investments for Mr.

Brennan, often under direction from Mr. Brennan's accountant.

It later emerged that Mr. Donnelly's accounting practices were not all they should be and he admitted that he had made some of the figures up. "These lines are made up, but the transactions did occur,'' he told the court.

In closing arguments, Assistant US Attorney Henry Klingerman reminded jurors to keep their eyes on the big picture and to remember that the money Mr. Bond was dealing with was Mr. Brennan's and it was Mr. Brennan who was on trial.

Michael Critchley, Mr. Brennan's lawyer, tried to convince the jury that Mr.

Bond was lying and only testified against Mr. Brennan to "obtain a much needed immunity''.

He accused Mr. Bond of helping Russians launder money in US bank accounts and said his companies sold arms in Russia and Rwanda. He also said Mr. Bond did business in the US without paying taxes. The immunity agreement secured Mr.

Bond's own fortune, said Mr. Critchley.

The case now rests with the jury.

Robert Mulderig, chairman and chief executive officer of Mutual Risk Management, told The Royal Gazette at the end of last month that the company was aware of these problems with Valmet when it was purchased.