jury was last night unable to reach a verdict on the lone charge that he faced.

He will return to court for mention on May 1. In the meantime, the Attorney General will decide whether to seek a retrial on the allegation that he falsified the information on a loan form and supporting documents.

As a result of that transaction, nearly 2 million was advanced to Gibraltar-based Neway Properties Ltd.

Diggins, 49, of Somerset, was employed at the Bank of Butterfield as a senior manager responsible for international loans.

He was arrested in March, 1996 after an investigation into the Neway loan revealed alleged irregularities.

But the jury -- despite beginning their deliberations at 12.50 p.m. yesterday -- were unable to come to a conclusion when Puisne Judge Richard Ground summoned them in at 7.30 p.m.

The jury foreman had sent a message to Mr. Justice Ground around 4.45 p.m.

indicating that the panel had reached an impasse.

After a short conference with defence attorney Julian Hall and Solicitor General Barrie Meade, a consensus was reached that the jury should be given more time to discuss the case.

Mr. Justice Ground reminded the jury of the solemn oath they had taken to deliver a true verdict according to the evidence and he said that there needed to be reasonable "give and take'' as matters were thrashed out.

The foreman asked Mr. Justice Ground to go over the legal definition of "intent to defraud'' and he obliged.

At 5.03 p.m., Mr. Justice Ground released the panel to continue their deliberations with the proviso that he would call them back within one hour to see how things were progressing.

But the foreman said there was little chance of them reaching a verdict unless they were given "some days'' to discuss the issues. As the interview progressed, he changed his mind.

He told Mr. Justice Ground that it may be possible to reach an agreement with more time. Consequently at 6.07 p.m. they were sent back to the jury room.

A full hour and a half passed, and Mr. Justice Ground asked whether the court should make some arrangements for food to be brought in.

Initially, the foreman agreed, but when pressed on whether a decision was unlikely, he said: "We are at that point now.'' Mr. Justice Ground accepted this response and discharged the panel after first thanking them for their service.

Hung jury in Diggins trial The hung jury follows a similar decision in the fraud trial of former Bank of Bermuda executive Arnold Todd.

His trial lasted nine weeks and the panel failed to reach a verdict on 11 of 17 counts -- which still hang over his head.

But three other accused -- Varnel Curtis, 49, Milton Woods, 61, and Cecil Durham, 56 -- were cleared of all the allegations against them.

Todd, 57, was cleared of five charges by a unanimous verdict and one on a majority verdict.

Like the Todd trial, the Crown now has two options -- letting the matter rest or ordering a new trial with a fresh jury on the sole charge that Diggins faces.

It is understood that cost is a key issue facing the Attorney General as he decides whether or not to retry Diggins on one charge. The other three charges were thrown out for lack of evidence.