A former building tycoon giving evidence in a fraud case yesterday admitted he had used some of a bank loan in another building project.

Delmont Talbot -- former Delro Construction chief -- said he and now-retired builder Kenneth Benjamin borrowed cash for a joint building project at Beacon Hill.

But Mr. Talbot told Supreme Court he took money from the loan to complete a house he and Mr. Benjamin were building in Town Hill, Flatts.

But he insisted Mr. Benjamin knew of the transaction and that the cash was put back out of the profits.

He was speaking during evidence in the case against ex-banker Arnold Todd and three others.

And Mr. Talbot said in response to questioning by Delroy Duncan, counsel for Todd's co-accused Varnel Curtis, that the sum involved was not $115,000, more like $15,000.

Former Bank of Bermuda executive Arnold Todd, 56, faces 17 counts of theft, fraud and false accounting, allegedly committed between 1985 and 1990.

It is claimed by the prosecution Todd used bogus loan applications and a network of companies to further his illegal schemes. In the dock with Todd, of Pearman's Hill, West Warwick, are importer Varnel Curtis, St. Anne's Drive, Southampton, hotel security chief Milton Woods, 61, Old Road, Southampton, and businessman Cecil Durham, 56, Ramgoat Hill, Smith's.

All three men face other charges related to the offences against Todd. The alleged offences faced by the four, involving around $1.2 million in total, are all denied.

Yesterday, Todd's defence counsel John Perry QC told Mr. Talbot that Mr.

Benjamin had said in evidence he knew nothing of cash being used for another project.

And he said that was an example of Mr. Talbot having "his hand on the lever.'' Earlier, Mr. Talbot told the court that he was involved with a consortium called "The Group.'' The court heard that included in the members were Todd -- known as "The Chief'' -- lawyer Charles Vaucrosson, called "The Counsellor,'' Darren Woods, himself and architect Ashley Raynor.

But Mr. Talbot insisted he had nothing to do with the financial aspects of "The Group'' and concentrated on building work only, leaving finance to other members. Mr. Talbot said: "I had nothing to with the money matters -- every week I had to report, every week, progress on these projects, how much was spent.'' And he denied a $270,000 plus deposit into one of his accounts by Todd was put there at his request.

Mr. Talbot said: "It was not -- I didn't even know the cheque went down to the bank. I had no idea.'' Mr. Talbot's accountant David Pereira told the court he did bookkeeping for Delro in the 1980s until 1991.

Kim White, acting with Mr. Perry for Todd, asked Mr. Pereira to review some bookkeeping transactions.

In response to questioning, Mr. Pereira said Todd's name did not appear. He also said he did not know the original source of money paid out to him for Delro work.

Architect Ashley Raynor, who said he worked with Mr. Talbot on several occasions, told the court his activities were cost control of projects -- not fund-raising -- and that he had no reason to believe funds made available had been obtained illegally. The trial continues on Monday.