The mentally ill widow from whom a lawyer is accused of stealing half a million dollars signed two separate orders revoking his right to represent her, the Supreme Court heard yesterday.

Former Progressive Labour Party MP Julian Hall is being tried on five counts of stealing a total of $551,044 from Betty Lorraine McMahon between 1995 and 1996.

Hall was officially declared bankrupt and banned from practising law in January 2000. He was ordered in December 1997, to pay Mrs. McMahon, $1.6 million plus seven percent interest.

As legal proceedings dragged on, he was charged with stealing from the woman. He has denied those charges.

The case is being heard by Chief Justice Richard Ground and prosecuted by consultant counsel to Department of Public Prosecution's office Kulandra Ratneser. Hall is representing himself.

Mrs. McMahon is not considered fit to be a witness in the case.

David Kessaram, Bermuda legal representative for Mrs. McMahon's older daughter Francine Ryan, took the stand yesterday as a Crown witness.

He said he began giving Mrs. Ryan legal advice at the end of 1995. Mr. Kessaram said that Mrs. Ryan was concerned about the way that Hall was handling her mother's affairs. At this time large sums of money were being transferred from Mrs. McMahon's accounts to Hall's business accounts.

“I met with Julian Hall in my office with Francine Ryan on March 26, 1996,” said Mr. Kessaram. “We had previously written to Mr. Hall asking for an accounting of his dealings with Mrs. McMahon's assets.

“At that time, Hall produced a schedule of payments from the time he began dealing with Mrs. McMahon's affairs. He produced some bank statements that were involved.”

Mr. Ratneser asked Mr. Kessaram if Hall produced any documents showing what he was doing with Mrs. McMahon's money.

“There were no such documents to show the reason for the payments,” said Mr. Kessaram.

He said Mrs. Ryan had a number of major concerns about Hall's decisions regarding Mrs. McMahon's affairs, one of which was that Hall had been made executor of the will, and the way Mrs. McMahon's will would be executed after her death had changed.

Previously, the trustees of Mrs. McMahon's affairs, after her death, would take into account Mrs. McMahon's younger daughter Bettina McMahon's lifestyle and situation, before giving her money.

During the case, several witnesses have alleged that Bettina McMahon is a drug addict.

After Hall entered the picture the will was redesigned to make sure that each daughter got an equal share.

“What did you get a feel about the amount of friction that existed between the two girls?” asked Hall in cross-examination.

“I got the impression that it was being stoked, particularly from Bettina's side,” said Mr. Kessaram. “She was living a very dissolute life in New York City. I got the feeling that Bettina was being manipulated or taken advantage of. Yes, my information was based on what Francine Ryan told me.”

Mr. Kessaram advised Mrs. Ryan on how she could revoke Hall's power of attorney over Mrs. McMahon.

He helped her to draw up documents for the revocation. Mrs. Ryan selected Paul Hubbard and John Boden, accountants at Deloitte & Touche to have the new power of attorney.

Mrs. McMahon signed the first revocation document on November 7, 1995.

“Mr. Hall then initiated legal proceedings saying the power of attorney had been improperly revoked,” said Mr. Kessaram. “He claimed that the day she signed it, her mind was not in a fit state to sign it. Hall commenced legal proceedings saying improper pressure had been brought to bear on Mrs. McMahon to get her to sign the revocation.”

Mr. Kessaram said Hall went to the Supreme Court and gained an ex parte order - meaning without the other party present - and gained an injunction that prevented Paul Hubbard and John Boden from having power of attorney and excluding them from having access to Mrs. McMahon. It also stopped them from holding a meeting of Mrs. McMahon's holding company, Devonian Investments and firing Hall as director.

In turn, Mr. Kessaram and Mrs. Ryan went to court and gained their own ex parte order saying that Mr. Boden and Mr. Hubbard should be appointed receivers of Mrs. McMahon because of circumstances of Mr. Hall's indebtedness and concerning the large sums of money that had been withdrawn from Mrs. McMahon's account and Devonian Limited account and paid to Hall's accounts: Woodley and J S Hall & Associates.

Eventually, Mrs. McMahon signed a second revocation on May 10, 1996, this one with witnesses.