A judge yesterday ordered any draft copies of a statement given to the Bank of Bermuda by one of former bank executive Arnold Todd's co-accused in a theft and fraud trial to be produced in court.

Todd's defence counsel John Perry QC told Supreme Court: "What I am concerned about is the statements which gave rise to this end product.

"I do not want to see the fruit -- I want to see the seeds and the plant.'' The move came after Bank of Bermuda executive John Fargey took the witness stand in the case against Todd and three others.

Crown counsel Michael Pert QC read the 1994 statement from Cecil Durham to Puisne Judge Richard Ground and the 12-strong jury.

In it, Durham told Bank of Bermuda managers that he had always trusted Arnold Todd in his capacity as his loan officer and banker.

He added Todd had approached him in 1987 with a offer to buy a property in Flatts, Smith's Parish, at an "attractive price'' somewhere between $315,000 and $375,000 and indicated he could arrange financing.

Durham admitted he signed two blank promissory notes at a meeting with Todd but said a loan form had not been signed by him.

And he said he became concerned when cash was drawn from his loan account and interest was due on the money before he bought the house.

He said Todd later told him the deal had fallen through and that he then asked the former bank loans chief to remove the loan off his account.

Mr. Durham's statement continued: "He told me not to worry about the loan, that he would pay the interest and he would take care of it.'' The statement said that he had no knowledge of what happened to the proceeds of the loan -- but added he had learned from Police that $265,000 was lodged with lawyer Charles Vaucrosson's firm and from there six-figure sums were deposited with Southgate Ltd. and Arnest Ltd.

Durham's statement added that he also learned from Police that $50,000 deposited into his account in July 1987 was part of the $315,000 loan.

The statement explained that Todd had asked Durham to deposit a draft in his account and pass $40,000 on to property developer Delmont Talbot and that the $10,000 should be kept by him as it was money owed to him by Todd.

But the statement insisted: "At no time did I consider that this amount of $50,000 was being paid to me out of the proceeds of the loan for $315,000.'' The reading of the statement sparked a row between defence lawyers and the prosecution.

Cross-examining Mr. Fargey, Todd's defence counsel John Perry QC demanded to know how many drafts the statement had gone through.

Mr. Fargey admitted the final statement was the product of several discussions between the bank, its lawyers and Durham.

He also admitted there may well have been drafts, but said he did not know how many there had been.

Mr. Fargey denied that Durham had been threatened -- but admitted he had told Durham that he had to make a statement disclaiming the money or be held liable for it.

Mr. Pert said that any drafts were not held by the Crown, but raised no objections to them being produced in court.

After Mr. Pert had finished reading Durham's statement, Mr. Justice Ground warned the jury that a statement by an accused could be used against him -- but not against a co-accused.

Mr. Justice Ground added: "In particular, this statement which has just been read to you is not evidence against Mr. Todd.'' Todd, 56, Pearman's Hill, Warwick, faces 17 counts of theft, fraud and false accounting, allegedly committed between 1985 and 1990. He has pleaded not guilty to all the charges.

Co-accused -- importer Varnel Curtis, 49, St. Anne's Drive, Southampton; hotel security chief Milton Woods, 61, Old Road, Southampton and businessman Durham, 56, Ramgoat Hill, Smith's Parish -- all face charges relating to the allegations against Todd. All have pleaded not guilty.

The trial continues.