THE Bank of Bermuda is running a 'vendetta' against black businessmen by offering loans and other financial services ¿ and then calling in those loans, launching lawsuits and counter-claims in a bid to seize their assets and force them into bankruptcy, it has been claimed.

The Mid-Ocean News has obtained a dossier of legal documents and private e-mails outlining cases in which the bank has aggressively pursued black entrepreneurs through the courts.

And long-time litigant and entrepreneur Harold Darrell claims that more than 80 small businesses have been the target of the bank in recent years.

Mr. Darrell yesterday was finally able to claim victory in his battle with the bank after the financial powerhouse officially withdrew its claim that he owed it a whopping $1.59 million ¿ made up primarily of interest fees.

Mr. Darrell also claimed that the bank's clients were often hampered by the legal system and other authorities ¿ a claim supported by other black entrepreneurs and documents obtained by this newspaper.

The dossier outlines a number of cases ¿ some of which are still dragging through the courts years after they first began ¿ in which the bank allegedly used spoiling tactics to delay proceedings, launching counter-claims and appeals.

One court paper outlining a case dating back to 2002, shows how one black businessman "with valuable property and other assets" found himself in "a cash crisis" and sought the bank's help. According to the document ¿ compiled by Puisne Judge Charles-Etta Simmons last year ¿ the businessman alleged that the bank "gave advice and obtained the confidence of the Plaintiff so as to create in the Plaintiff a belief that the Defendant [Bank of Bermuda] was acting in the Plaintiff's interest and that this gave rise to a fiduciary duty between the Plaintiff and the Defendant".

The document goes on to reveal that, according to the businessman, the bank became aware that he was the subject of a police investigation. Nevertheless, the bank's then-Senior Vice-President, Henry Smith, authorised a new mortgage and loan package for the businessman. Shortly after, the businessman lost his job ¿ after the bank informed his employer about the businessman's involvement in a property deal. As a result, the bank was able to seize possession of the businessman's home.

The businessman is now appealing the ruling but claims he is being hampered by the courts. He alleges that court instructions have been sent to attorneys who no longer represent him and was told by court authorities that he was unable to examine his own court file.

The desperate businessman even wrote to Premier Ewart Brown, asking him to investigate the entire legal system.

In a March 2008 letter to Dr. Brown, the businessman wrote: "I appreciate that you are in a difficult position, however it is accepted in certain quarters that our local banks have a history of predatory behaviour, preying on the financial blood of the black community.

"Unfortunately this has not changed with the new Government, part of the reason being that they are protected by the regulatory bodies ¿ the police and the courts. The Governor, as opposed to the Government, is responsible for two of those entities.

"My situation is merely anecdotal as the stories are legend and continue on a daily basis. What the Government can do is be proactive and cause an investigation into these bodies.

"May I suggest that the Attorney General be asked to look into the legal and court system. There are numerous people who can relate their experiences at the hands of a court that is supposed to protect and uphold their rights. Black people cannot be empowered without an unfettered hearing in the courts and financial institutions.

"Unquestionably the entire community will be healthier once we deal with these issues, which, like race, will forever keep us in the Dark Ages should we not have the courage to confront them. May I suggest that the Attorney General be asked to look into these matters. Perhaps [UK's Foreign Office Minister] Mrs. Megg Munn . . . should be appraised of these issues for we are fiddling while Rome burns."

The Mid-Ocean News has also seen a Supreme Court affidavit from a bank loan officer relating to another case that has been ongoing for the last eight years.

In that case, a black entrepreneur's business partner ¿ who was also a former bank director ¿ was able to secure a loan with the bank on behalf of their company for nearly $1 million.

But when the loan had to eventually be "called in" the bank went after the black entrepreneur for repayment, while his business partner was not liable. According to the affidavit, the loan officer received a mandate from then-bank director Henry Smith "to release [bank director] from the obligation and hold [black entrepreneur] responsible for the entire amount".

Another black businessman currently engaged in a lawsuit with the bank ¿ who faces legal bills totalling hundreds of thousands of dollars, said: "The bank is taking my life from me. Not only is this costing me financially, they have also blackened my name in the community with a nod and a wink. That is how they operate."

Mr. Darrell first made allegations that the bank, with the support of other agencies, was "deliberately blocking the advancement of black Bermudian entrepreneurs like me" in a 2005 Supreme Court affidavit.

"This started off because of institutional racism on the part of the bank but it's now also about a total abuse of power as well.

"Ewart Brown may go on about fearing a return to the days of the 40 thieves but he and his brother Phil Butterfield ¿ the bank's current CEO ¿ are actually doing the work of the 40 thieves now."

Yesterday, he said the fact that other black businessmen were making similar claims showed that his allegations were justified.

"I have spent eight years fighting the bank in the courts," Mr. Darrell said.

"Today, the bank was finally forced to admit that it had no grounds for its claim that I owed it nearly $1.6 million. The question is, why did it pursue this case in the first place?

"Throughout this long process I have always maintained that I had a loan with the bank and, with interest, owed some $640,000. They have continually tried to get an extra $1 million out of me without any justification. It seems to me that this is a deliberate attempt on the part of the bank to financially cripple people like me ¿ and the evidence is there that I'm not a one-off case."