The Crown will not be appealing a decision by a judge that search warrants given to fraud detectives investigating whether a "sham" trust was used to allow a non-Bermudian to buy a luxury house were invalid.

Last month Mr. Justice Ian Kawaley ruled that the search warrants should be quashed.

Supreme Court heard Police believed six people had been involved in a conspiracy to defraud the Bermuda Government of $660,000 in sales tax through the use of trust to buy the $3 million house in Paget whose ultimate beneficiary was tennis player Norberto Herrero.

Police last year raided the offices of law firm Appleby Spurling and Kempe (AS&K), Sterling Management and Mr. Herrero's house.

The court heard Police believe Mr. Herrero, his wife Kathleen, former Mayor of Hamilton William Boyle, AS&K lawyer Scott Swainson, and Bruce and Margaret Hern of Sterling Management, were involved in the alleged conspiracy, although no one has been charged with any offences.

Lawyers for the six said there was no dishonesty involved and the trust was set up legally.

Acting Director of Public Prosecutions Kulandra Ratneser said yesterday: "Having given consideration to the matters decided by Mr. Justice Kawaley, I have decided an appeal is not necessary.

"I cannot give you reasons why I am not appealing because there are certain matters that I am still considering."