The deportation of a convicted fraudster has been put on hold for six months so he can repay his victim.

Cedric Oates, 43, was jailed for two-and-a-half years in February last year and ordered to repay $200,000.

The American, a former school guidance counsellor, fleeced Canadian PE teacher Diane Laird out of her life savings of $345,000 in a real estate scheme.

Oates is due to be released from prison and an order was signed by the Deputy Governor, acting on behalf of the Governor, to deport him.

But he has only repaid a little more than half of the money he was ordered to, prompting prosecutors to apply to have him remain in prison in Bermuda.

Defence lawyer Saul Dismont told the Supreme Court yesterday that the deportation order granted by the Governor “ends all matters in this jurisdiction” and that Oates should be released and allowed to return to the US.

“Mr Oates is unlawfully imprisoned and the deportation order must be enforced,” he said.

“The Crown and this court no longer have any lawful authority.”

But prosecutor Nicole Smith said he still owed more than $99,000, that the repayment was part of his sentence and that the Department of Immigration was unaware of this fact when they applied to deport him.

“Any deportation order doesn’t supersede the order of the court,” Ms Smith said. “The Governor or Government would not usurp a court order.

“The Immigration Department did not know at the time of Mr Oates’ term of imprisonment expiring that this amount was outstanding.

“His attempts to make payment is his acknowledgment of the fact he knows these amounts are outstanding.”

Acting Justice Charlene Scott it was “unfortunate” somebody failed to inform immigration that there was a repayment part to Oates’ incarceration.

“You did make some form of repayment but there is still remaining $99,000,” she said. “You will be detained for a further six months in light of that money.”