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Paper proves to be `inconclusive'

Diggins office and was supposed to show that he earned 45,000 pounds from a loan that he had processed, proved inconclusive when tested.

Diggins, a former senior manager in charge of international loans at the Bank of Butterfield, has been accused of falsifying the information on loan application on behalf of a Gibraltar-based firm called Neway Properties Ltd.

The bank advanced $1,875,000 to Neway Properties Ltd. who then bought a west end London property called the Moulin Complex.

Senior officers at the Bank of Butterfield launched an investigation into Diggins around March 1996.

His office and home were searched. Near to his laptop computer, two disks were recovered by Michael Moniz, the bank's head of electronic security.

Security chief John Graham handed Moniz two other disks some days later but in court on Friday Mr. Moniz was unable to distinguish with any certainty which of the two disks he had found.

Moreover, he said the disks Mr. Graham had given him were not the standard IBM issue because they had MacIntosh files on them which led him to conclude that they had been formatted on a MacIntosh computer.

When shown a piece of paper alleged to have been made on Diggins' laptop -- it showed a series of figures that included one for 45,000 pounds beside Diggins' name -- Mr. Moniz said that technically anyone could have drawn up this document and then made it look like Diggins was the author.

Meanwhile, Solicitor General Barrie Meade rested the Crown's case on Friday and the defence is expected to start today.

It is thought that the defence will not call any witnesses which could mean that summations could begin on later today.

The Crown has alleged that Diggins falsified the information contained in a loan application when he arranged the Neway Properties Ltd. loan back in 1995.

And it also alleges that Diggins did not follow proper procedures and that the money was advanced improperly.

Today Diggins' trial enters its fourth week. At the beginning he was charged with stealing $2,812,500 and obtaining the money under false pretences and with intent to defraud, inducing Mary Faries to deliver the money to Neway Property Ltd. without proper authorisation on August 29, 1995.

But those charges were dropped when Mr. Meade issued a Nolle Prosequi which meant that he was no longer prepared to proceed on either the stealing or the obtaining money by false pretences charges as they first appeared on the indictment.

Diggins now stands accused of fraudulent false accounting. It is alleged that on August 25, 1995 he falsified a report and its supporting documents.

Secondly, it is alleged that he obtained a valuable security by false pretences on August 28 and with intent to defraud caused Mary Faries to send $2,812,500 (1,504,991.93 pounds) to the National Westminister Bank in London.

Diggins is represented by lawyer Julian Hall. Pusine Judge Richard Ground is presiding.