Convicted Bermuda Housing Corporation fraudster Terrence Smith is being sued by his lawyer, who has not been paid for work during the high-profile trial.

Larry Scott is owed what this newspaper understands to be in the region of $60,000 by the conman for representing him during last year’s 19-day Supreme Court proceedings and ensuing civil hearings.

During Smith’s trial for his $1.2 million fraud, the jury heard he renovated his mansion in Tee Street, Devonshire, using public cash siphoned from the Bermuda Housing Corporation.

Smith abused his position of responsibility as Property Officer to authorise fraudulent payments to a carpenter who submitted fictitious bills for his work. He creamed off massive profits from the crooked enterprise, which he blew on renovating his lavish three bedroom home in Tee Street, Devonshire, which boasts a swimming pool, home movie theatre, marble fittings and a separate apartment.

After being convicted by a jury, Smith was jailed for eight years, with Chief Justice Richard Ground subsequently making an order giving Capital G bank possession of the house in order to recover the mortgage money it loaned Smith. The Tee Street house was sold earlier this year for $2.25 million. Capital G lawyer Justin Williams confirmed last night that the bank is currently holding the balance of the funds until Proceeds of Crime hearings are held. These will determine how those left out of pocket by Smith’s fraud should be recompensed, and Mr. Scott said his writ is part of the process he must follow to recover his fees through these hearings.

He declined to give details of the amount he is owed, other than describing it as “a considerable amount.” Smith is likely to be served with official papers pertaining to the writ at Westgate prison in the near future.

Among the other people may join Mr. Scott in claiming money from the sale of Tee Street are the Bermuda Housing Corporation and Smith’s wife, Veronica, who was co-signed on the mortgage for the property. However, the Proceeds of Crime hearings must wait until Smith completes a planned appeal against his conviction. Mr. Scott confirmed he will not represent his former client in this action, saying lawyer Charles Richardson now has conduct of the case.