devastating attack from a Supreme Court judge.

The judge condemned him for making wild claims against his former business partner in a bid to escape bankruptcy.

The Hon. Mr. Justice Ground declared Mr. Peniston was insolvent -- unable to pay his debts.

He slammed the former United Bermuda Party Senator for producing "false and materially misleading'' figures and delaying court business.

Mr. Peniston had made "most serious'' claims about his ex-partner Mr. Robert Thomson, "calculated to do the utmost harm to his business and professional reputation''.

But evidence indicated the partners' glass-bottom boat firm sank because of Mr. Peniston's "lack of realism'', rather than alleged wrongdoing or mismanagement by Mr. Thomson.

Mr. Justice Ground added Mr. Peniston acted irresponsibly and recklessly by making unsupportable claims, on oath, with no real effort to back them up.

"However, having seen him give evidence, I accept that, however misconceived and wrong-headed the allegations may be, (Mr. Peniston) is personally convinced of what he alleges.

"I am not, therefore, going to take the question of his conduct in this regard any further.'' But the judge said it was the duty of someone making a sworn statement to ensure it was absolutely true.

"It is not open to him to swear to ill-founded and unsupported suspicions as if they were hard facts.'' Mr. Peniston, 48, was taken to court by his 43-year-old ex-partner.

Mr. Thomson is a wealthy Scotsman whose financial computer systems are popular with firms around the world.

He was "semi-retired'' when he came to Bermuda in 1988. The next year he lent Mr. Peniston $80,000 -- a sum he eventually had to take legal action to try to recover.

The two men set up the glass-bottom boat firm Bermuda Vacations, but its income fell cripplingly short of what they hoped.

Mr. Thomson kept a tight rein on expenses, Mr. Justice Ground said, keeping them lower than expected.

But Mr. Peniston over-estimated the number of passengers he could attract using his cruise ship connections, the judge concluded.

Mr. Thomson had personally guaranteed the firm's bank loans, while Mr.

Peniston had made only a "small personal contribution''.

The judge rejected Mr. Peniston's claim that Mr. Thomson wilfully caused Bermuda Vacations to collapse with the intention of taking over its business without his partner.

"In this case there was no evidence at all of any act by (Mr. Thomson) in his capacity as director which caused any harm to the company.'' Mr. Justice Ground said Mr. Peniston at one stage understated his personal liability to the Bank of Bermuda and failed to reveal his wife's half interest in his one substantial asset, a house.

Mr. Peniston's excuse had been that his sworn statement was done hurriedly.

The judge stressed his criticism of Mr. Peniston's tactics was not aimed at his lawyer, Mr. Delroy Duncan.

After Mr. Justice Ground announced his judgement Mr. Peniston immediately left the court, declining to comment.

Mr. Saul Froomkin, lawyer for Mr. Thomson, said: "We're pleased that justice has been done.

"Mr. Peniston has now been made a bankrupt, as of the first meeting of creditors, which hopefully will be held shortly.'' As for Mr. Thomson getting back what he was owed, Mr. Froomkin said: "We live in hope.'' He said an appeal was possible for Mr. Peniston.

The judge ordered Mr. Peniston should pay costs.

Mr. Llewellyn Peniston.