Bermuda fraudster Arnold Todd after a marathon nine-week trial failed to reach a verdict on eleven of the 17 charges against him.

But yesterday three of his co-accused left Supreme Court to cheers and tears after being cleared of all the charges they faced.

And Julian Hall, who appeared for defendant Cecil Durham, said his client would be suing the Bank of Bermuda for "substantial'' damages.

He added legal action may be taken against "other law enforcement authorities'', subject to legal advice.

Todd, 57, was cleared of five charges by a unanimous verdict and one on a majority verdict. A majority verdict in Bermuda needs a minimum of nine jurors to agree.

But the ten woman and two man jury was unable to reach a verdict on eleven other charges despite a day-and-a-half's deliberation.

The Crown now has two options -- letting the matter rest or ordering a new trial with a fresh jury on the remaining charges.

Todd, of Pearman's Hill, Warwick, was released on bail by Puisne Judge Richard Ground.

Three others, however, Varnel Curtis, 49, Milton Woods, 61, and Durham, 56, were cleared of all the allegations against them.

Last night, Attorney General Elliott Mottley refused to discuss the cost of the case so far -- or whether he would be seeking a re-trial on the 11 counts outstanding.

He said: "I am not in a position to say -- I am not prepared to discuss any matters which are lying before the court. It is still sub judice.'' Before discharging the jury, Puisne Judge Richard Ground said that in recognition of their work during the marathon hearing, he would exempt them from further jury service for life.

He said: "I am therefore, members of the jury, going to formally discharge you. Your function is at an end.

"I know this has been a long trial and I can tell by the consideration that you have given it that you put a great deal of effort into this.

"While it's a matter of regret you could not reach a verdict, I do not blame you for it.'' English barrister John Perry and Bermudian lawyer Kim White, who appeared for Todd, declined to comment on the result of the case until the Attorney General made his intentions clear -- and advised their client to follow their lead.

None of the three acquitted would speak to the press.

First to be cleared were Durham and Woods.

Mr. Hall said after his client walked free: "Obviously, there is a tremendous sense of relief.

"Mr. Durham will be suing the Bank of Bermuda for a considerable amount of money -- for lost business, lost reputation and the pain and suffering his family have been put through. These charges should never have been brought against Mr. Durham.'' Mr. Hall said: "I never doubted for one moment his innocence and that he would be acquitted and I never doubted these charges should have been brought.'' Todd case co-accused cleared And he added: "The entire system of justice has been brought into disrepute -- I do not blame the Attorney General for this. It was already in the hands of outside, paid prosecutors.

"The public of Bermuda will be wanting to know the amount of money which has been wasted.'' Richard Hector QC -- who appeared for Woods -- said: "I don't wish to say too much -- I expect that justice has been done.

"I really had no fears my client would be acquitted because at all times I had no doubt about his innocence. The trial is not finished and I don't want to say any more than that.'' The jury went back after delivering some verdicts around 11 a.m. and returned at 12.50 p.m. to acquit Curtis on the one remaining count against him. He had earlier been cleared on two charges.

Curtis' lawyer Delroy Duncan said: "My client feels vindicated and, quite frankly, he would like the people of Bermuda to know that he didn't feel these charges should have been brought in the first place.

"He is very happy that a jury of Bermudians decided he was not guilty of the charges he faced. I never doubted his innocence.'' Mr. Justice Ground told the jury before they went into conference in a final bid to reach consensus on the outstanding charges: "Let me say this to you.

"Each of you has taken an oath to return a true verdict according to the evidence... .you have a duty, not only as individuals but also collectively, that is the strength of the jury system.

"Each of you takes into the jury box with you your individual experience and wisdom -- your task is to pool that experience and wisdom. You do that by giving your views and listening to the views of others.'' Todd was accused of 17 counts of theft, fraud and false accounting. The offences were alleged to have taken place between 1985, when Todd was a senior loans officer at the Bank of Bermuda.

The prosecution claimed he submitted bogus loan applications and that he used several companies to disguise his actions.

In the dock with Todd were importer Curtis, of St. Anne's Drive, Southampton; former hotel security chief Woods, of Old Road, Southampton and businessman Durham, of Ramgoat Hill, Smith's Parish.

All three faced charges relating to the allegations faced by Todd. The counts faced by the four -- involving a total of about $1.2 million -- were all denied.

Photos by David Skinner PARTY TIME -- Former UBP Paget West MP Dr. Vincent Bridgewater embraces Arnold Todd outside Supreme Court.

TEARS OF JOY -- Businessman Cecil Durham wipes away tears after being cleared by a jury in the Bank of Bermuda fraud trial.