Financial regulator the Bermuda Monetary Authority says it has taken no action against the fund and fund manager that has been at the centre of a $6 million fraud probe.

Interinvest (Bermuda) Ltd. and the fund it manages, the Hedge Hog and Conserve Fund Ltd., were the subject of a civil case and a criminal investigation by the Bermuda Police Service.

The Bermuda police have recommended that 55-year-old Canadian money manager Hans Black, of the Montreal-based Interinvest Group, be criminally prosecuted for allegedly defrauding a client of $6 million.

In response to questions from this newspaper about whether any regulatory action had been taken against either Bermuda entity, the BMA stated yesterday: "The Authority is monitoring developments regarding Interinvest.

"At present the matter relates to civil litigation and a criminal investigation, and is not an appropriate matter for regulatory action."

A criminal investigation was launched following a complaint from Regula Dobie, a Swiss national residing in Kenya who has been trying to withdraw her funds from Interinvest since mid-2007.