It is thought the probe relates to alleged breaches of the rule against non-Bermudians owning more than 40 percent of a business.

Yesterday Police confirmed the investigation, but declined to comment further.

"We are looking into alleged violations of the Companies Act 1981 by Long Botham Boat Company,'' said Police spokesman P.c. Gary Venning.

Long Botham's president is Mr. Andy Allan, who last year announced the company had increased its profits.

In March 1993, it raised $637,500 through a public offering of 15 percent of its shares.

Shareholders, however, received a recent blow with the departure of comedian Mr. Jimmy Keys.

Hugely popular, Mr. Keys was seen as a huge asset to the business.

A Bank of Bermuda spokesman said yesterday he was unaware of any moves to suspend trading in Long Botham.