1991 of assets to BF&M Ltd., lawyer Robin Potts told the Supreme Court. Ahmed ElAmin reports The claim that patriotism to Bermuda led five of the Island's top businessmen to defraud Bermuda Fire and Marine Insurance Co. Ltd. creditors was described yesterday in Supreme Court as a "pretty bizarre motive''.

Robin Potts, lawyer for Bermuda Fire's five former directors, continued his attack yesterday on the liquidator's claim of fraud by attacking the motive being alleged to have led them to set up BF&M Ltd. as a means protecting assets from creditors.

Mr. Potts is acting for the five former members of Bermuda Fire's finance committee -- William Cox, Donald Lines, Gregory Haycock, Michael Collier, and Charles Collis, who died last year. He claimed the five owned "small'' amounts of shares in Bermuda Fire and had nothing to gain from the 1991 transfer of assets to BF&M Ltd.

"It's a very rare fraud where there is no benefit,'' he said.

Mr. Potts said Mr. Lines even bought more shares in Bermuda Fire after the 1991 reorganisation of the company.

Gabriel Moss, lawyer for liquidator Ernst & Young, had alleged the directors, legal advisor and auditors had a "misguided loyalty to Bermuda and Bermudians'' in putting "themselves, their relations, their friends and their neighbours in effect ahead of their legal duties to the creditors who were American''. The allegation of patriotism was an "odd'' explanation for a motive, Mr. Potts said.

"That's a pretty bizarre motive'' on which to base a case, he said, quoting Samuel Johnson's phrase: "Patriotism is the last refuge of a scoundrel''.

There was no evidence of fraud in any of the dealings of the defendants leading up to the 1991 reorganisation, Mr. Potts had claimed earlier in the day.

Bermuda Fire's accounts had been audited by Cooper & Lines and legal advice had been given by Conyers Dill & Pearman.

Bermuda Fire's board had delegated the task of looking into the reorganisation to the finance committee. The committee in turn set up a committee of management and representatives of Conyers Dill & Pearman and Cooper & Lines, he said. The board trusted the advice of the professionals and it was they who made the decision to reorganise, not the finance committee, he said.

He questioned why the five defendants were being sued when they were not the decision makers for the company.

It was the board as a whole that was authorised to make decisions. "The oddity is that the plaintiffs are seeking to assert that the involved defendants set out intentionally to defraud BFMIC's (Bermuda Fire) creditors, and indeed there seems to be some sort of suggestion that they are engaged in some sort of grand conspiracy to achieve this result,'' Mr. Potts told Supreme Court Puisne Judge Vincent Meerabux. "The point I would like to put to your Lordship, is this -- It is not the hallmark of fraud or of conspiracy for the alleged conspirators to hand over the grand plan to senior management, lawyers and accountants of the alleged victim company and tell them `Get on with it.

Devise an appropriate structure for the perpetuation of a fraud on BFMIC and it's creditors'. It is absurd.'' Mr. Potts is expected to conclude his opening argument today. Geoffrey Vos, lawyer for Conyers Dill & Pearman, is expected to begin his opening argument next.

Robin Potts BUSINESS BUC