The man alleged to be behind a fraudulent scheme that cost the Bank of Bermuda $67.5 million last year has been ordered to serve time in jail.

Michael Gause - whose Cash 4 Titles Ponzi scheme cost the bank millions, and counting - has been sentenced to ten years and seven months in prison in the US, according to Web-based newsletter Inside Bermuda (IB).

The bank was left out of pocket by the hefty sum last October after settlement of Cash 4 Titles litigation in Illinois and Florida.

The settlement provided for payment of up to 50 percent of actual out of pocket losses to investors in Cash 4 Titles, although the total payment is not to exceed $67.5 million. At the time, the Bank said: "I am pleased the settlement has been approved by the court as it brings to an end the Cash 4 Titles litigation against the Bank in the US . . . We continue to deny liability in this matter, but the approval of the settlement enables the Bank to move forward with the on-going disruption, expense and uncertainty of major litigation."

There were however Cash 4 Title investors who opted out of settlement and would still be able to bring suits against the Bank. There was also Cash 4 Titles litigation in Grand Cayman.

Earlier this year a new lawsuit was filed in Florida by some 40 of the victims of the Cash 4 Titles scheme who are collectively seeking $43.4 million from a group of defendants, including the Bank of Bermuda. IB reported in its May newsletter that in total there were 1,800 victims of the scheme. Mr. Gause had previously plead guilty to conspiracy, securities fraud and international money laundering charges. During sentencing in May, Mr. Gause was also ordered to pay restitution of $157.99 million, according to the IB report.