Terrence Smith has lost an appeal to Bermuda's highest court that he should not undergo a retrial.

He had his conviction for defrauding the Bermuda Housing Corporation to the tune of $1.2 million overturned by the Court of Appeal earlier this year and a retrial was ordered.

Smith's lawyer, Patrick O'Connor QC, argued at the Privy Council in London yesterday that he should not have to be tried again and should have his name cleared completely.

However, the appeal was dismissed by Lords Bingham, Carswell and Brown.

Speaking after the case, Director of Public Prosecutions Rory Field said: "It's thus open to the Bermuda authorities to pursue the matter of a retrial. We are taking the matter under consideration."

The case is likely to come back before Chief Justice Richard Ground at the next monthly arraignment session on June 2.

At the last such hearing, Mr. Justice Ground offered to consider bailing Smith but his lawyer Patricia Harvey declined the opportunity, offering no explanation why.

Smith has been in Westgate since he was remanded there after his conviction in March 2006. He was sentenced to eight years in May 2006.