is seeking $5.25 million in damages against former US Attorney General Mr.

Elliot Richardson.

Dr. Earl Brian, who was chairman of Bermuda-based Intex from 1984 to 1988, has filed a libel action against Mr. Richardson at the Supreme Court of the State of New York.

He claims he was defamed in an article published in The New York Times on October 21, 1991.

In the article, Mr. Richardson made a number of allegations linking Dr. Brian to a scheme to profit from computer software stolen by the US Department of Justice from a company called INSLAW.

In his lawsuit, Dr. Brian claims that the article suggested that he received and accepted stolen computer software, known as PROMIS, as a pay off for participating in the "October Surprise''.

The October Surprise was an alleged conspiracy to extend the captivity of American hostages in Iran to help Ronald Reagan's bid to become President of the United States.

Dr. Brian's lawsuit claims that the article falsely claimed he: Was the beneficiary of politically motivated favouritism in the Department of Justice resulting from economic considerations he granted to the wife of from Attorney General Edwin Meese; Knowingly sold the stolen software to foreign governments for the purpose of financing covert intelligence operations illegally conducted by the Central Intelligence Agency, and; Indirectly, through his activities in respect of INSLAW, contributed to the death by foul play of an investigative journalist seeking to uncover the truth about INSLAW.

Dr. Brian's lawsuit states: "The New York Times article was defamatory in of plaintiff in its totality by associating the plaintiff with illegal schemes, crimes and governmental corruption and injustice and with persons engaged in perpetuating such wrongs.'' Dr. Brian claims that the article was part of a public campaign carried out by Mr. Richardson on behalf of himself and William and Nancy Hamilton, co-owners of INSLAW.

The aim of the campaign was "to advance their own commercial, financial and professional interests'', he added.

Dr. Brian is seeking $5 million in punitive damages, $200,000 for the time and effort he has spent defending his reputation and a further $50,000 he has incurred in expenses trying to clear his name.

In a separate development, Dr. Brian has featured prominently in an investigative report into INSLAW released last month by US Congress' Committee on the Judiciary.

One of the Committee's findings states: "Several witnesses, including former Attorney General Elliot Richardson, have provided testimony, sworn statements or affidavits linking high level Department (of Justice) officials to a conspiracy to steal INSLAW'S PROMIS software and secretly transfer PROMIS to Dr. Brian.

"According to these witnesses, the PROMIS software was subsequently converted for use by domestic and foreign intelligence services.

"This testimony was provided by individuals who knew that the Justice Department would be inclined to prosecute them for perjury if they lied under oath. No such prosecutions have incurred.'' The Committee called for further investigation into the death of Daniel Casolaro, who was investigating the INSLAW theft.

It also found that "certain high level Justice officials and private individuals'' may have committed fraud, wire fraud, tampered with a witness, committed perjury, received stolen goods and obstructed an inquiry into the affair.

The Committee concluded that "high level Department of Justice officials'' deliberately stole PROMIS.

Among the Committee's recommendations were that "the Department appoint an independent counsel to conduct a full, open investigation of the INSLAW allegations of a high level conspiracy within the Department to steal Enhanced PROMIS software to benefit friends and associates of former Attorney General Meese, including Dr. Earl Brian, as discussed in this report''.

It is alleged that stolen PROMIS software ended up at many overseas locations.

Bermuda-based Intex, which was formed in 1982, was involved in developing computer software for international futures trading.

Dr. Brian has always denied being involved in any wrongdoing, including during his time at Intex.

Intex went into liquidation in April of this year with debts of $1.6 million.