Labour and immigration disputes led the Bermuda Jazz Festival organiser to contact the US Consul General - amidst alleged threats that he would be sent to jail.

And at least one promoter criticised Government for hiring a non-Bermudian promoter in the first place, calling it "a slap in the face".

Festival promoter Lee Heiman of New York-based Track Entertainment said the problems surrounding this year's cancelled event were "a real black eye" to Bermuda.

Police were called to Dockyard on Thursday night and arrested a member of the local labour crew after he allegedly threatened festival organisers with a knife.

Following the fracas, Mr. Heiman said three members of his own security team guarded the equipment, despite a Police presence, throughout the night on Thursday.

And when he met with Chief Immigration Officer Martin Brewer and Permanent Secretary Robert Horton yesterday, Mr. Heiman said he was told his team was in Bermuda illegally.

"They told me we'd be jailed if we worked any further, and that's a direct quote," stated Mr. Heiman.

He said he then called the US State Department and met with US Consul General Karen Emmerson as well as several members of the Department of Tourism.

"I have 24 people as well as over a hundred Bermudians, I've paid $7,000 in immigration fees - in fact, Immigration owes me money," he added.

Mr. Heiman said he was eventually given the green light to finish breaking down the stage, but said he refused to work with the Bermudian crew, which he said exhibited "hoodlum antics".

"We have our work permits, we're allowed to finish packing our stage tomorrow without any Bermudians on site," said Mr. Heiman.

"Not to be belligerent toward Bermudians, but I won't work with people who threatened one of my team with a machete," said Heiman.

"If I have to tear down the stage myself, I will."

And he fired back at local promoter David Frost who wanted to host a local mini-jazz festival in the wake of the cancellation and said Mr. Heiman was "b*llsh*tting Bermuda".

"Ask Mr. David Frost, if he's so successful, how come Bermuda hasn't hired him? Tell him to do it himself," said Mr. Heiman.

Mr. Brewer told