Charles Vaucrosson paid off a series of debts to various creditors from money contained in trust accounts, a Crown Counsel charged yesterday.

Vaucrosson, a lawyer who lives on North Shore Road in Pembroke, is charged with stealing nearly $400,000 from the late Percy Ball's beneficiaries in 1991.

Mr. Michael Pert QC alleged that Vaucrosson instructed his accounting staff to draw up a cheque for $50,462.10 to be paid to the Bank of Bermuda in settlement of a loan that the accused had guaranteed.

Vaucrosson accepted that he instructed his accounting staff to draw up the cheque on February 15, 1991.

"I regarded it as a debt that I as the head of the firm was responsible for,'' he said. "I did not look around to see where I could get the money from.'' Vaucrosson said he received a letter dated January 29, 1991 from the bank's lawyers at Appleby, Spurling and Kempe which asked for the remaining $50,000 to be repaid with full accounting.

He said the money was sent to the bank with $452.10 in interest although Smith's money was never originally invested in a trust account at Vaucrosson's.

"I was not at that time prepared to tell them what happened. All I was doing was covering the amount they requested.'' However, Mr. Pert suggested that it was not possible for that money to come from any other source than a trust account because his other accounts were overdrawn.

And that this was an offence against the law.

Vaucrosson replied that he did not know where the money came from but he admitted that it could have come from which ever client's trust account he had authorisation to use.

"I gave no specific instruction to take it from any particular account,'' Vaucrosson said.

Later when he was pressed further he said: "I did not order the $50,000 to come out of a trust account. I ordered a cheque for $50,000. I see that it did come from a trust account and I signed it.

"As far as I was concerned if the (financial controller) thought it was an acceptable way to settle this thing that was okay as long as he made the proper accounting arrangements.

"I suppose I had some concerns, but it had to be paid. As far as I was concerned it was a debt that the firm had to settle promptly.'' On February 21, 1991 Vaucrosson admitted that $31,000 that was threaded through Amulion investments and then placed in his staff payroll account. It was recorded as a debt on his personal account.

But he said he had no idea why the money was eventually taken from the Ball account and placed in the payroll account although he admitted that his payroll account was overdrawn $155,402.76 during that period. The payroll account had an overdraft limit of $150,000.

Vaucrosson said he did not instruct his financial controller to write the cheque for $31,000 and thread it through Amulion Investments which is a firm the accused is a major shareholder in.

"It is a very confusing procedure and not one that I would have sanctioned,'' he explained.

"If Colmet (financial controller) had believed that the money was invested in Amulion he may have wanted to advance some money to the payroll account. I assume that was one way he thought he could do it.

"I was not asked about it. I was not asked if I approved of it and I certainly gave no instructions about it.'' The trial is now in its third week. The Crown is expected to finish its cross examination of the accused this morning.

Senior Crown Counsel Mr. Pert QC is being assisted by Mr. James Candlin. Mr.

Frank Phipps, Ms Patricia Harvey and Mr. Michael Scott appear for the defence.

Puisne Judge Mrs. Justice Wade is presiding.