Investigation (FBI) sting operation on suspicion of laundering $200,000 through the Bank of Butterfield.

The FBI confirmed yesterday that Robin Cotterell, who worked in Bermuda in the 1980's and 1990's, was arrested in St. Croix last month on allegations of money laundering. Cotterell was arrested in the US Virgin Islands on May 23 and is under house-arrest, according to the Miami-based newsletter Offshore Alert, which broke the story. FBI press officer Joseph Valiquette in New York told The Royal Gazette yesterday: "I can confirm that person was arrested based on court papers filed at the federal court in New York. He was arrested in St. Croix on allegations of money laundering.'' A spokeswoman for the Bank of Butterfield said: "We have heard of the allegations and we are looking into it.'' For more see Business on Page 16 .

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