An American businessman committed suicide weeks after Bermudian Andre Curtis paid him back more than $1 million for his part in an alleged Ponzi scheme.

John Scheaffer, CEO of Illinois-based Sysix Technology, was found dead in his office with a plastic bag over his head; a coroner ruled he took his own life.

Weeks earlier, Mr. Scheaffer's firm received a huge repayment from Mr. Curtis as Police in the United States probed the Bermudian's financial dealings.

That came after Bermudian lawyer Justin Williams, representing Mr. Scheaffer, secured a rare judgment from Puisne Judge Carlisle Greaves varying a restraining order so cash could be taken out of Mr. Curtis' frozen account.

Mr. Scheaffer was said to be a victim in an alleged Ponzi scheme in which Montana State Auditor's Office claimed investors across the world were duped out of millions of dollars.

The auditor has alleged Mr. Curtis ran that initiative jointly with convicted money launderer and fraudster Daniel Two Feathers, Shawn Swor, Terrence Paulin and Eric Schultz.

Mr. Justice Greaves made his ruling in February last year and the cash was later transferred from Mr. Curtis to Sysix Technology and Mr. Scheaffer's other company, TSC Holdings, of the Bahamas.

Mr. Scheaffer was found in an unresponsive state on July 8, and taken to hospital where he died that afternoon. After a six-week investigation, the coroner delivered a verdict of suicide.

Sysix, which is reported to have had financial difficulties, closed down on July 31, leaving about 40 employers without jobs.

Another of the alleged victims, Ida Brown of Texas, told The Royal Gazette she understands the investigation is continuing and she hopes she can recoup $100,000 of the $135,000 she invested.

Meanwhile Police in Bermuda have revealed they have reviewed more than 20,000 documents and interviewed more than 20 witnesses as part of their investigation into Mr. Curtis' handling of Government's faith-based tourism initiative.

Mr. Curtis' company Harvest Investment Holdings was paid $374,500 of taxpayers' money to run the initiative during 2007/08, and was contracted to arrange ten events, bringing 2,200 visitors to the Island.

However, the church community says he enticed hardly any tourists, while former Auditor General Larry Dennis says Mr. Curtis failed to provide evidence that ten events even took place.

In his annual report in February, Mr. Dennis recommended Department of Tourism chiefs ask for a Police investigation into Harvest's affairs. He added that Civil Service boss Kenneth Dill should bring a complaint against public officers who failed to carry out their oversight responsibilities by letting Mr. Curtis get the cash without any proof he would deliver a service.

Tourism has declined to comment when asked if it followed the recommendation, with Major Dill saying he does not have the authority to bring a complaint against public officers under Public Service Commission regulations.

Police confirmed they have received a complaint about faith-based tourism but would not say who made it. They said their investigation was launched in August last year — before Mr. Dennis' recommendation.

A spokesman said: "This has been a complex and thorough inquiry which is now nearing conclusion."

This newspaper understands faith-based tourism no longer exists, although Tourism would not confirm that.

Mr. Curtis could not be reached for comment. He is due to face trial over a matter in connection with Harvest Investment Holdings on August 9.