former Focus Insurance boss, Mr. Mark Hardy, to show cause why he should not be punished for contempt of court.

It means that local officials can seize and arrest the bankrupt former chartered accountant -- whose Bermuda insurance empire is now in liquidation -- and take him before the court to explain why he should not be sentenced for contempt.

Last Friday's hearing before Puisne Judge the Hon. Mr. Justice Meerabux was the continuation of a matter adjourned last May, when the Puisne Judge halted civil proceedings against the unrepresented man and referred the matter to the Attorney General's chambers.

The proceedings were initiated by Mr. David Lines and Mr. Peter Mitchell, the joint liquidators of Mr. Hardy's failed Focus group of insurance companies.

The joint liquidators wanted to have Hardy declared in contempt of court for "scandalising the court'' in a letter campaign against former Chief Justice, the Hon. Sir James Astwood. Sir James, now the President of the Court of Appeal, had previously rendered judgments against Hardy in related matters.

Justice Meerabux said on Friday the allegations involving the "scandalising of the court'' were proved beyond a reasonable doubt.

The liquidators' lawyers successfully applied to have the matter returned to court after it was clear the Attorney General would not proceed with prosecution.

Lawyer Mr. Saul Froomkin said: "If Mr. Hardy returns (to Bermuda) I hope the court will deal with him appropriately, due to the very serious allegations he's made.''