An application for permission to acquire property has been made in connection with a home once at the centre of a fraud investigation into "fronting".

Church Bay Trust Company Limited, as trustee of The Labrador Trust, has applied to the Housing Minister for permission to hold the equitable interest in "La Paloma" on Harbour Road, Paget, on behalf of non-Bermudian tennis player Norberto Herrero.

La Paloma hit the headlines six years ago when Police launched an investigation into whether an alleged sham trust had helped buy the $3 million house for the benefit of Mr. Herrero.

A Supreme Court hearing was told that Police believed six people were involved in a conspiracy to defraud the Government of $660,000 in sales tax through the use of a trust.

The Crown dropped the case after Puisne Judge Ian Kawaley ruled that search warrants issued to Police in connection with the inquiry should be quashed.

The case convinced Government to introduce tighter restrictions for foreigners buying property and ultimately led to an amendment to the Immigration and Protection Act to outlaw the practice of fronting, where non-Bermudians gain unlawful interest in land here by using local "fronts".

The controversial amendment has prompted criticism from conveyancing lawyers and opposition MPs, including Shadow Attorney General Trevor Moniz, who claimed it targeted the wrong people i.e. foreign spouses and parents of Bermudians.

The application for La Paloma ran in the Bermuda Sun last week. It read: "Notice is hereby given that Church Bay Trust Company Limited, as trustee of The Labrador Trust, is applying to the Minister of Labour, Home Affairs and Housing as constructive trustee for sanction to hold the equitable interest in a freehold interest in the property known as 'La Paloma' situated at #44 Harbour Road in Paget Parish, on behalf of non-Bermudian Norberto Fernando Herrero, who is the parent of Christina Susanna Herrero and Nicolas Fernando Herrero, both Bermudian beneficiary of The Labrador Trust."

The advert said objections to the application needed to reach the Ministry of Housing by July 14.