A prominent San Diego law firm specialising in class action recoveries has announced it is investigating the activities of the scandal ridden Manhattan Investment Fund, Deloitte and Touche (Bermuda), Bear Sterns and Fund Administration Services (Bermuda).

Frinkelstein & Krinsk says it is pursuing an "aggressive investigation'' into allegations of fraud and other violations of the US federal securities laws.

And the law firm has asked investors to contact them about the collapsed hedge fund which is believed to have lost $500 million.

A spokesman for the company said: "Finkelstein & Krinsk has extensive experience in prosecuting stockholder litigation and investor class actions and is recognised as a leader in the field of shareholder recovery of stock losses.

"Manhattan Fund investors interested in further information concerning the Manhattan investigation or discussing their legal rights may contact Jeffrey R. Krinsk of Finkelstein & Krinsk, 501 West Broadway, Suite 1250, San Diego, CA 92101, e-mail -- fk yclass-action-law.com.'' The hedge fund, which was registered in the British Virgin Islands, but was administered and audited by Bermuda companies, admitted in January that it had lost $500 million after previously claiming it had made massive profits.

The scandal was unearthed after Deloitte & Touche LLP, the Bermuda auditors of the fund, withdrew approval for the fund's financial statements for 1996, 1997 and 1998.

A subsequent investigation by fund administrator and local Ernst & Young affiliate Fund Administration Services (Bermuda) Inc revealed the extent of the losses and accused the fund's managers of misrepresentation.

So far in Bermuda 11 separate cases have been filed with the Supreme Court in Bermuda.

The writs, which are for a total $4.762 million, have been filed against Manhattan Investment Fund, Michael Berger, Fund Administration Services (Bermuda), Manhattan Capital Management and Bank of Bermuda, the fund's bankers.