Police have swooped on offices across Hamilton - including the offices of law firm Appleby Spurling and Kempe - in a bid to seize documents as part of an criminal investigation, The Royal Gazette has learned.

Not only have the two main offices of Bermuda law firm AS&K at Cedar House and Cumberland House been searched by Police, but also the offices of Sterling Management (1985) Ltd. at Sterling House in Wesley Street, Hamilton and Labrador Trust at 44 Harbour Road, Paget, the home of top local tennis player Norberto Herrero.

A spokesperson for the Police confirmed yesterday the searches had taken place in June this year “as part of an ongoing investigation” and confirmed that the Commercial Crime Unit was involved but said they could not reveal any further details of the investigations.

The searches came to light at the end of last week when the first of two writs was filed by AS&K, the Labrador Trust and Sterling Management (1985) Ltd, to suppress information gathered in the Police searches.

Named in the writ as parties seeking to suppress the warrants and any information gathered are Norberto Fernando Herrero, William A. Boyle, Bruce Hern and Margaret Hern (as trustees of the Labrador Trust) and AS&K.

The lawyers acting for all parties, Cox Hallett and Wilkinson, would not reveal any details about the case and calls to AS&K were also not answered at press time.

A further writ was filed yesterday about a second search warrant which was issued and acted upon on July 18 2003 at the premises of Sterling Management (1985) Ltd. with Norberto Fernando Herrero, William A. Boyle, Bruce Hern and Margaret Hern (as trustees of the Labrador Trust) applying to suppress warrants.

One of the companies swooped on by Police was Sterling Management (1985) which is a subsidiary of Sterling Management Ltd. is a small, privately owned group of Bermuda companies that provide offshore services to private clients, mutual funds and charitable foundations.

It was founded by Arthur Leighton in 1970, and is one of Bermuda's oldest management services companies.

Since 1970 it has specialised in providing personal service to an international clientele. The company's web site lists “Arthur's motto ‘small is beautiful'”.

Sterling started its life as Kayanday (Bermuda) Management Ltd. In 1984 the name of the company was changed to Sterling Management Ltd. and in 1985 Sterling Management (1985) was incorporated. In 1994 Sterling Trustees (Private) Co., Ltd. was incorporated. Sterling has managed private clients continuously since 1970, fund clients since 1981 and charitable foundations since 1984. Sterling does not manage insurance companies. Sterling provides management services to a total of approximately 50 clients, with total assets in excess of $2 billion.

For these clients, it administers approximately 90 legal entities which include Bermuda exempted companies, BVI companies, private trust companies, trusts, Bermuda funds, BVI funds, charitable foundations and others.

The company is run by husband and wife team Bruce and Margaret Hern. Mr. Hern, a Canadian, has worked at Bank of Bermuda as an accounting officer, and later as an investment officer. Subsequently, he was employed by Price Waterhouse in Bermuda as an auditor.

Mr. Hern joined Sterling in 1989 as an account manager. He was promoted to general manager in 1993 and to managing director in 1998. Mrs. Hern, a Bermudian, is the company's director and joined Sterling in 1976 as an account manager. In 1989 she established a separate office for one of Sterling's clients - APS Ltd. (Bermuda), a substantial privately held group of companies.

She is currently general manager in Bermuda, and vice president of Treasury & Administration for the group worldwide. Mrs. Hern is also a founding member and trustee of The Centre on Philanthropy and the International Charitable Fund of Bermuda, and she is a founding member and former trustee of The Coalition for Protection of Children.

Not much is known about the Labrador Trust, but a legal notice posted in January, 2003 said that Mr. and Mrs. Hern on behalf of Sterling Management (1985) Ltd. wanted to set up a local company with limited liability to be called Sterling - NH Private Trust Co. Ltd. which was to act as trustee of The Labrador Trust.