Harrison Isaac Jr., a Government worker who looted $2 million of public money, was not the qualified management accountant his bosses believed him to be, jurors have heard.

Assistant Accountant General Lucia Peniston told the trial of Isaac's alleged accomplice Teketa Thompkins that this only came to light after the scandal, when his boss reported him to his professional body.

"He's not qualified, so he's not a professional accountant," she said yesterday of the man put in charge of a multi-million dollar account Government held with the Bank of New York.

The trial of Thompkins, at the US District Court in Manhattan, has heard how Isaac looted $2 million from this account via unauthorised online wire transfers.

Prosecutors allege that $1.4 million of this was funnelled into bank accounts controlled by Thompkins, 33, from Georgia, US. It is further alleged that Thompkins spent thousands of this on luxuries, sent a large amount back to Isaac, and also laundered the dirty money. She denies the nine fraud-related charges that she faces. Her lawyer has said she was duped by Isaac, a "slick" and apparently wealthy individual who proposed marriage to her. Ms Peniston said in evidence yesterday that in 2003-2004 — the time of Isaac's scam — he would have been earning $75,000-$80,000 a year. She explained he was in charge of the Bank of New York Account that was set up in February 2003 to pay people owed money by the Government in US dollars. She listed these as including US hospitals who had treated Bermudians and Government pensioners now living in the US.

Ms Peniston said the account was only intended to clear cheques, not to send wire transfers, and Isaac knew this. But in the week of April 12 2004, she said, she became aware he had used the account to make wire transfers and met his supervisor Anthony Manders about this.

Running through a list of those who received the funds — including Thompkins's companies All Brand New and Simply Perfection, and Isaac's company Bermuda on the Rocks — she said none were featured on an official database of Government vendors.

Answering questions from Thompkins's lawyer Paul Madden, she recalled how at one point Isaac was given authorisation to obtain quotes for new equipment for the department boardroom. However, she said, he actually went on to the purchase the equipment, which Police later found in his Hamilton Parish apartment.

She agreed with Mr. Madden that from May 29 2003 - the date of the first unauthorised wire transfer - until April 2004, she and her department were unaware they were taking place. She also told Mr. Madden it was thought Isaac was a qualified accountant.

In answer to further questions about this from Assistant District Attorney Jonathan Abernethy, she said management accountants in the Accountant General's Department must be designated as qualified and have three years on-the-job experience.

Isaac, she said, signed his name as Harrison Isaac Jr CPA — indicating he was qualified as a certified public accountant. But she added: "I learned recently from the Accountant General (Joyce Hayward)—she discovered that in the process of reporting him to the CPA body that he was not a qualified accountant. He was not a CPA."

Ms Peniston agreed with Mr. Madden that at the time of an interview with a Bermuda Police detective about the matter on April 14 2004, she described Isaac as a certified public accountant employed in the Accountant General's Department since December 2000. Isaac left the department in March 2004.

The case continues.

Jury told: Isaac not qualified as Management Accountant