The Bank of Bermuda has been hit with a flurry of legal actions as overseas mutual funds moved this week to freeze funds deposited with the bank by the scandal-ridden Manhattan Investment Fund.

The hedge fund, which was registered in the British Virgin Islands but was administered and audited by Bermuda companies, admitted last week that it had lost $500 million after previously claiming it had made massive profits.

The scandal was unearthed after Deloitte & Touche LLP, the Bermuda auditors of the fund, withdrew approval for the fund's financial statements for 1996, 1997 and 1998.

A subsequent investigation by fund administrator and local Ernst & Young affiliate Fund Administration (Bermuda) Inc. revealed the extent of the losses and accused the fund's managers of misrepresentation.

Now a number of other mutual funds which were investors have moved to freeze deposits made in the Bank of Bermuda by Manhattan Investment Fund. On Monday, Absolute Alpha Fund PCC Ltd. and Avis Fund Ltd. issued a writ against Bank of Bermuda, Manhattan Investment Fund, MIF affiliate Manhattan Capital Management Inc. and MIF manager Michael Berger.

Richcourt Superplus Inc. filed a writ against the bank on the same day.

On Wednesday, a $2 million writ was filed by BAS Equity Market Neutral Fund Ltd. while Eagle Ray Fund placed a $470,000 writ. Both named the Bank of Bermuda as the sole defendant.

Kredietbank SA named Fund Administration (Bermuda) Inc. and Manhattan Investment Fund in addition to the Bank in a third action, filed on Wednesday.

Bank of Bermuda spokesman Peter Smith refused to comment on the legal actions.

But sources close to the scandal, speaking on condition of anonymity, said the actions were aimed at freezing funds deposited by MIF in bank accounts to ensure that the money was available for creditors.

The sources said the bank had no other connection with the fund.

The procedure of investors filing writs in this manner to secure their assets is said to be standard.