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Isaac pleads guilty in $1.8 million fraud

NEW YORK (AP) - A former Ministry of Finance official has pleaded guilty to charges that he looted $1.9 million from an account at The Bank of New York.

Harrison Isaac Jr., an accountant who had oversight over a government bank account used to pay debts in US dollars, entered the plea in a federal court in Manhattan late on Thursday.

Isaac was arrested at an airport in Bermuda in 2004 while trying to leave the island for Atlanta.

Prosecutors said Isaac, 35, used special access cards to make a series of unauthorized wire transfers in 2003 and 2004. The transfers sent government money flowing into a trio of companies controlled by Isaac and an accomplice, investigators said.

None of the companies had done any work for the government of Bermuda, and none were entitled to the cash, according to the US Attorney in Manhattan.

As part of his guilty plea, Isaac acknowledged that he participated in a conspiracy to defraud the government of Bermuda of $1.9 million. His sentencing was scheduled for April.

An attorney for Isaac did not immediately return a phone call or an e-mail message Friday evening.