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Thompkins ran a failed sex-toy business ? claim

Jurors have heard that fraudster Harrison Isaac Jr. published calendars of swimsuit-clad models, and attempted to sell them to fellow Government workers.

They also heard how Teketa Thompkins (pictured) ? the woman who allegedly helped Isaac loot the public coffers of $2 million ? was a model and dancer who ran a failed sex-toy business.

In evidence to the District Court in Manhattan, where Thompkins denies nine fraud charges, Assistant Accountant General Lucia Peniston spoke of management accountant Isaac's ownership of a company called Bermuda on the Rocks.

"It's a calendar that he published with models ? swimsuit models. A Bermuda calendar. He would advertise his calendar in the office and bring it to the office and try to sell it to the staff and promote his calendar," she told the jury.

Ms Peniston listed Bermuda on the Rocks as the recipient of five unauthorised wire transfers made by Isaac out of a Government account with the Bank of New York that he was in charge of. In her evidence, Bermuda Customs Officer Tanisha Woolridge said she pulled Thompkins in for a strip search after she arrived at Bermuda airport on March 17 2004. This revealed she had $30,000 cash on her, with $26,000 of it hidden in her underwear.

Thompkins told Special Constable Woolridge during an interview that she was a dancer with a company called Dancers Elite and also a model.

Thompkins told her the cash had come out of her bank accountant and was intended for her boyfriend Isaac for the promotion of a concert in Jamaica. She said he told her he needed the money in cash, and instructed her to conceal it.

Special Agent Arthur Hardy, a Georgia-based FBI agent, gave details of information he gleaned from Thompkins during interviews before and after her arrest in Georgia.

He said she told him she met Isaac at Bermuda airport on July 27 2003 "while she was there to film a video and a swimsuit calendar called Bermuda on the Rocks".

Thompkins, he said, told him she had two businesses called All Brand New Inc and Simply Perfection Inc.

"She said she started All Brand New sometime in 2001-2002. She told me that it was a business into adult toys. She said that the business failed," recalled the FBI agent.

She described Simply Perfection as a business promoting concerts and clubs.

Special Agent Hardy said Thompkins recounted how Isaac had paid $380,000 into a bank account of hers. The prosecution has alleged during the trial that this was money stolen by Isaac from the Bermuda Government. "She told me she spent approximately $50,000 on property including vehicles, furniture for her parents home (and) she had also purchased a watch and an engagement ring. She told me she took daily shopping trips."He said she explained she thought this cash came from Isaac's business Bermuda on the Rocks and his work in the Accountant General's Department.

The case set out by defence lawyer for Thompkins, Paul Madden, is that she is an innocent woman duped by Isaac who she believed to be the man of her dreams.

Mr. Madden pointed out what he described as mix-ups in Special Agent Hardy's note taking.

The case continues.