David Diggins yesterday.

The trial, now in its third week, centres on the issue of whether Diggins falsified information contained in a loan application.

Diggins, 49, of Somerset, arranged the loan for 1,875,000 pounds for a Gibraltar based company called Neway Properties Ltd. and they used that money to purchase a property in London's west end called the Moulin Complex. Diggins was then a senior manager responsible for all foreign and international loans at the Bank of Butterfield.

The Crown alleges that he falsified the information contained in a memo and its supporting documents.

Based on that information, a loan for 1,875,000 pounds was advanced to Neway Properties Ltd. who then used the money to buy the property for 1,623,000. At the beginning of his Supreme Court trial, Diggins 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 Properties Ltd.

without proper authorisation on August 29, 1995.

But those charges were dropped when Solicitor General Barrie 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 Westminster Bank in London.

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