Bermuda even managed to have its name attached to an undercover sting operation in the United States.

"Operation Bermuda Short," a two-year investigation conducted by the Federal Bureau of Investigation and the Royal Canadian Mounted Police, uncovered an attempt to defraud investors of $200 million through a fictitious investment scheme. The investigation led to 23 indictments against 58 people, including three businessmen with connections to Bermuda.

Paul Lemmon was the managing director of the Voyager Group, a Bermuda company with offices on Front Street. Lemmon, a Canadian who moved to Bermuda in the early 1990s, previously worked for the Bank of Butterfield. He was arrested with Andrew Proctor, an American who was also a director of the Voyager Group. The third man was Mark Valentine, a Canadian who sat on the boards of several Bermuda companies and was extradited from Germany.

In August, all three were charged with at least one count of securities fraud, wire fraud or mail fraud by the US District Court of the Southern District of Florida.

The indictment charged that Lemmon and Valentine conspired to sell stock in companies to a fictitious fund represented by an undercover agent posing as a corrupt mutual fund dealer. The dealer would pay $29.4 million for the stock, and in exchange, Lemmon and Valentine would receive a kickback payment of $7.8 million. The other two indictments are against Lemmon and Proctor and allege that the men had conspired to participate in other illegal kickback schemes through the same fictitious fund.

After four months in custody, Lemmon reached a plea agreement with the US Department of Justice earlier this month. The stockbroker pleaded guilty to one count of conspiracy to commit wire and securities fraud; in exchange, the government has agreed to drop two additional counts of securities fraud after sentencing, which is scheduled for February. Lemmon, who was denied bail, also pledged to cooperate with authorities in their investigation.

Valentine has claimed his innocence and denied the charges. He is on bail in Florida awaiting trial.