Lawyer and former Progressive Labour Party MP Julian Hall was in Police cells last night after being arrested yesterday morning on suspicion of stealing.

The Royal Gazette understands that the attorney was arrested at a residence after arriving on the Island recently.

It is believed the arrest involves a lawsuit Mr. Hall lost in December 1997, when he was ordered to pay $1,609,740 - plus interest - to a former client of his, Betty Lorraine McMahon.

It is believed members of Bermuda Police's Commercial Crime Department spent yesterday interviewing Mr. Hall, once a top flight criminal lawyer who now lives overseas, at Hamilton Police station. Questioning is expected to continue today.

The civil lawsuit claimed that Mr. Hall, while acting as power of attorney to Mrs. McMahon's estate, obtained $1.6 million without lawful justification.

Mrs. McMahon was the widow of Canadian millionaire Frank McMahon, who died in 1986 at his Harbour Road, Paget, home.

Mr. McMahon had lived in Bermuda for 13 years before dying in his sleep aged 83.

Following the lawsuit, Mr. Hall's creditors became increasingly frustrated at the lengthy legal process they had to go through to try to recover their money. Mrs. McMahon's lawyer Alan Dunch eventually applied to have Mr. Hall declared bankrupt after accusing him of dodging his financial responsibilities.

Mr. Dunch said with interest accrued, Mr. Hall's debts were about $2 million. He was then declared bankrupt in January, 2000, which prohibited him from practising as a lawyer - with debts of $1.9 million and assets of $135,000.

At the start of 2000, he was ordered to submit a detailed statement of his financial affairs to the Supreme Court.