The first witness in the trial of a Bermudian lawyer accused of stealing more than $500,000 from a mentally ill widowed client yesterday described to the Supreme Court a vicious power struggle over control of the widow?s assets.

Julian Hall is being tried in Supreme Court on five counts of stealing a total of $551,044 from Betty Lorraine McMahon between 1995 and 1996.

Hall, a former Shadow Environment Minister, was officially declared bankrupt and banned from practising law in January, 2000. In December, 1997, he was ordered to pay Mrs. McMahon $1.6 million plus seven percent interest. As legal proceedings dragged on, he was charged with stealing from the woman. He has denied those charges.

The case is being tried by Chief Justice Richard Ground. Hall is representing himself.

Sharon Lamb, former trust manager at Butterfield Bank subsidiary, Butterfield Executor Trustee Company (Betco) and former director of Mrs. McMahon?s company Devonian Ltd., was the first witness called.

She came to Bermuda to work at the Bank of Butterfield in 1995 before moving to the Cayman Islands in 2000.

Miss Lamb?s job was to manage the portfolios, affairs and accounts of some of the bank?s wealthier clients. She and her supervisor Ken Morgan, along with Appleby Spurling & Kempe lawyer John Campbell and Mrs. McMahon?s daughter, Francine Ryan had power of attorney over Mrs. McMahon. Mrs. Ryan lived abroad and only had power of attorney when on the Island.

Under questioning from consultant counsel to the Department of Public Prosecution?s office, Kulandra Ratneser, Miss Lamb said she gave Mrs. McMahon more attention than her other clients.

?I met with Mrs. McMahon many times,? she said. ?I received instructions from other people on her behalf. Sometimes she would ask for things. Sometimes I would go to her house and she would know who I was, other times she would have no idea who I was. My job was to ensure that the house?s value was maintained and cleaned and things like that.?

Miss Lamb described a rocky relationship with Miss McMahon?s two daughters Mrs. Ryan and Bettina McMahon.

?My relationship with Francine was reasonably good,? said Miss Lamb. ?My relationship with Bettina was not so good. Bettina was difficult to get along with. We didn?t ever meet to discuss her mother?s affairs, we met when she wanted money from her mother.

?In 1995 Hall and Bettina McMahon came to see me as Bettina?s lawyer. They met with Ken Morgan to discuss Bettina?s financial affairs or lack thereof and to try and extract funds from her mother?s account. We refused. It was a short meeting. Ken Morgan and myself refused to give her the funds and that was it.?

In early November, 1995, Miss Lamb was called to Mrs. McMahon?s Harbour Road residence by the widow?s nurse.

?I walked into the house. Hall was drinking coffee and holding up a legal document,? Miss Lamb said. ?I sat down. He asked me if I would like coffee. He said words to the effect that ?I?m in, you?re out?. Something like that.?

The document was signed by Mrs. McMahon and gave power of attorney to Mr. Hall giving him complete control over her life and finances.

?We exchanged not too pleasant comments,? said Miss Lamb.

Not long after this meeting, Miss Lamb began to receive requests from Mr. Hall for manager?s cheques from Mrs. McMahon made out to various accounts including Woodley Ltd. and Hall & Associates, among others. Cheques included $250,000 on November 8, 1995, $175,702.71 on November 20, $40,000 on January 8, 1996, $45,180.72 on January 24 and $40,160.64 on February 20, 1996.

Miss Lamb said on at least two occasions Mrs. McMahon?s bank account was almost entirely drained and funds had to be transferred from her Devonian Ltd. account to top it up.

?I did ask him what the money was for and in so many words he told me to mind my own business,? she said.

In early 1996, Miss Lamb became very concerned and spoke to Ken Morgan and John Campbell about it.

?Some time in January, 1996 there was a meeting of the board of directors,? she said. ?At the annual general meeting we ceased to be directors of Devonian Ltd.?

Under cross examination by Hall, Miss Lamb said that Hall and Nick Hoskins ultimately became replacement directors.

?At that time I had the power to make you resign,? Hall said to Miss Lamb. ?You knew I was hardly likely to want to work with you, didn?t you? Julian Hall was a talking point amongst a lot of you.?

Hall accused Miss Lamb of allowing Mrs. McMahon?s house to fall into dilapidation, but Miss Lamb denied this saying she had it painted several times.

When Hall asked her about her feelings towards the McMahon family, Miss Lamb said: ?I thought you were brave or stupid to take them on.?

Hall also asked Miss Lamb if she was aware that during the time that he took over as power of attorney Mrs. McMahon had asked him to look into how Butterfield Bank and Appleby Spurling and Kempe were handling her finances, and she alleged that $4 million had been misappropriated.

?It is a bit peculiar that you and Appleby Spurling & Kempe tried to continue to represent a woman who was alleging you had stolen $4 million,? said Hall.

Miss Lamb said it wasn?t peculiar at all since nothing had come of the allegations.

?You know there came a point when Mrs. McMahon herself applied for an injunction to stop AS&K and Betco obstructing me from instructing her affairs,? Hall said.

Hall said Mrs. McMahon signed the injunction and it was witnessed by lawyer Marc Telemaque who read over every line of it to her.

?When that order came down, I bet you were all livid,? Hall said.

?We were disbelieving, perhaps,? said Miss Lamb.

Yesterday?s proceedings were adjourned early so that a jury member could attend a funeral in the afternoon.