FBI agent that led to the arrest warrant being issued against two offshore bankers who are suspected of massive fraud, according to a newsletter on Bermuda.

Inside Bermuda, a maverick newsletter published in Miami, said the affidavit led to the arrest in the US of two former principals of Grenada-registered Cambridge International Bank & Trust in February.

The publication names the men as David Frank Rowe, 52, and Gerard Michael Burns and says they have been accused of fraud at the US District Court for the Northern District of California.

The article claims that the affidavit states Cambridge International's attorney had an account with LOM and alleged victims were told their accounts would be insured through LOM's insurance coverage.

Investors were originally attracted by the high interest rates with low risk, as many investors believed their accounts were insured in full by Lloyds of London, the publication states.

The FBI investigation has spoken to 30 investors who were promised guaranteed interest of up to 100 percent.

The affidavit states there is an investigation into Cambridge International, and began in April 2000 after a client complained he ad been defrauded of $730,000.

Surujdeen `Deo' Singh says that Mr. Rowe offered to pay him 100 percent interest for a six month term for any investment of $500,000 or more in 1999.

The articles says Mr. Singh claims to also have been handed a letter from Waylon McMullen, who represented himself as Cambridge International's attorney, according to the affidavit.

"The letter, dated June 21, 1999, states that Lines Overseas Management Ltd carries significant insurance through Lloyd's of London and insures each account up to $10 million.

"McMullen told Singh that since Cambridge International Trust had an account with LOM in Bermuda, Cambridge International Trust would be insured through Lloyd's of London.''