saying he was affiliated with a Bermuda company.

Michael D. Richmond has been criminally indicted in the US for an alleged $8.5 million investment fraud.

Richmond reportedly told potential clients that their funds would be managed by First Bermuda Securities or Deacon Capital Corporation.

The news is contained in the latest edition of OffshoreAlert, a business newsletter, and was confirmed by Jeff Conyers head of First Bermuda Securities.

Mr. Conyers said the information was brought to his attention by the US Securities and Exchange Commission (SEC) who questioned him a few months ago on his company's involvement with Richmond.

But he added that the company had had no involvement with Richmond and were completely unaware of his dealings.

"He never had an account with us, we never did any business with him,'' said Mr. Conyers.

According to the indictment, Richmond ran Nauru-registered Royal Meridian International Bank but lied, saying it was headquartered in Vancouver, Canada with offices in the Bahamas, Cayman islands, Guernsey and Turks & Caicos Islands.

According to the indictment, the bank was nothing more than a mail drop in Vancouver which diverted correspondence and telephone calls to Richmond's offices in Illinois and Florida.

Richmond, of Orland Park, Illinois was charged with 17 counts of mail fraud and 21 counts of money laundering relating to the sale of certificates of deposit of his bank.

Between September, 1997 and July, 1998, Richmond is alleged to have raised in excess of $8.5 million by selling the certificates of deposit to close to 170 people, 40 percent of whom were over the age of 70.

According to the OffshoreAlert report there was only $2.69 million left by the time the SEC were able to freeze assets of the Bank.

If convicted, Richmond faces up to 20 years in prison, fines, and an order or restitution.

COURTS CTS