Former banker Arnold Todd was "The Chief'' of a business consortium known as "The Group'', a former associate told Supreme Court yesterday.

But Delmont Talbot, a property developer and development company chief in the 1980s, now a bingo salesman, denied knowledge of alleged theft and fraud by Todd and others.

And he also denied ever sitting in on meetings between potential buyers and ex-Bank of Bermuda executive Todd when loans and mortgages were discussed.

He said: "I trusted lawyers and bankers -- look where I am. Look where I am.

I lost my wife, I lost my children.'' The outburst brought a warning from Puisne Judge Richard Ground to restrain himself.

The ex-Delro Construction boss told the court he first started business dealings with Todd, 56, in 1981.

Mr. Talbot said: "He took an active interest in managing my financial affairs.'' He added Todd put up several accounts at the Bank of Bermuda in connection with his personal and business affairs.

And he added that Todd later became involved in finding finance for property developments as part of "The Group''.

Crown counsel Michael Pert QC asked Mr. Talbot if he ever asked Todd where the funds came from for building projects the banker was involved in.

Mr. Talbot said that he understood the cash came from Tom Coughlin, who was based overseas, and others who wanted to put money into Bermuda.

He said: "That's where it was coming from, so that's where it was coming from. The fact is he (Todd) used to bring Coughlin on the sites.'' Mr. Talbot told the court that he thought a house he had built at Rose Hill had been sold to now-BIU president Derrick Burgess in 1985.

But he said the house went to someone else and Mr. Burgess later came to him told him he owed money on a Bank of Bermuda loan obtained to buy the house.

He said he had discussed the matter with Todd, who told Mr. Talbot he would "deal with it.'' He added Todd later called him and and asked him to sign a promissory note at Charles Vaucrosson's law firm for more than $200,000 in favour of Mr. Burgess.

Mr. Talbot said he would not do it, but added: "He kept badgering me, badgering me until many months later I finally did it.

"He said I had to do it to protect Burgess' position and that he (Todd) was going to repay that money.'' He added that Todd later came to his office for a meeting with him and Mr.

Burgess.

Mr. Talbot said: "He further reiterated that he would see that Burgess' note, or whatever, his debt to the bank was paid.'' He added that Todd told him the money had been "rolled over'' and left the office.

Mr. Talbot said: "We both had a great respect and trust in Mr. Todd and we wanted to support him all the way at that stage of the game....we saw him going to the upper reaches of the Bank of Bermuda, go where no black man had gone before and we were prepared to go all the way to support him. That's what it's all about -- trust.'' Todd faces 17 charges of theft, fraud and false accounting, allegedly committed between 1985 and 1990.