A Californian man was jailed for a month yesterday after he admitted trying to open a new bank account using false documents and information.

Dennis Herula pleaded guilty to the charge of uttering a forged document in Magistrates' Court, but denied a charge of forgery.

Prosecutor Cindy Clarke then offered no evidence in the second charge, but asked Acting Magistrate Tyrone Chin that the charge be kept in the file.

The court heard how Herula, from Tiburon in California, had gone to the Bank of Bermuda to open an account on November 23.

The 54-year-old is alleged to have told the bank that he wanted the account to be in the name of Platinum Asset Management - a company he was hoping to set up here.

And he said a cheque for $10 million, which was the proceeds of bond trading, would be credited to the account soon after from a company named Legacy 2000 Inc., based abroad.

However, investigations by the bank showed that Legacy 2000 Inc. did not exist. Due to suspicions felt by the bank, Police were informed and Herula, and his wife Mary Lee, were arrested at the Fairmont Hamilton Princess Hotel on Tuesday, where they were staying.

Yesterday they both appeared in court. No evidence was offered against Mrs. Herula, and she was free to leave the court.

Herula's attorney, Peter Driscoll of Moniz George and Lavigne told the court that his client had no prior convictions and said he had come to the Island with the intention of purchasing a home here and doing business.

The lawyer said Herula and his wife were ready to leave the Island today and suggested that a fine be imposed, rather than the maximum 12-month sentence.

However Mr. Chin said he did not believe the maximum $600 fine was sufficient for the offence of uttering in this case, and he said it would not deter other people from committing the crime.

He said: "In this instance, I don't think a fine would merit the case. It will not be a deterrent to people who come to Bermuda to try this."

Mr. Driscoll suggested the magistrate also consider the second charge of forgery, which would enable the court to impose a higher fine. And he noted the Director of Public Prosecutions had chosen to deal with the matter in the Magistrates Court, rather than sending it to Supreme Court.

But Mr. Chin added: "I see it (a fine) as a slap on the wrist. It is again only a maximum $600 fine (for the second charge). I think what he has done warrants a custodial sentence, even though he has a clean record.

"I want to send a message that we have no tolerance of this."

Mr. Chin jailed Herula for one month.

Last night head of Bermuda Police's Crime Support Division Det. Supt. Randy Liverpool said he was very happy with the result and the sentence doled out to Herula.

He said: "Last Friday, as a result of our anti-money laundering mechanisms that we have in place in Bermuda, it was brought to our attention that a visitor to Bermuda was attempting to open an account at a local banking institution using fraudulent documents.

"As a result of that information, the Police launched an investigation."

It is believed that Herula, who purported to be an investment manager in the US, was planning to transfer amounts of money into the account, believed to be in the millions."

As part of the anti-money laundering system on the Island, financial institutions are requested to look out for any unusual substantial transactions.

Any unusual activity should be investigated and reported to the Police's Financial Investment Unit, which happened in this case.

And Det. Supt. Liverpool said this showed that every effort had to be made to ensure other people did not try to get away with the same thing.

He added: "I would like to commend the financial institution for its diligence, and would like to encourage other institutions to do like wise."

In charge of the case, Det. Insp. Alan Cleave, of the Financial Investment Unit, said: "I think this is a clear example of how anti-money laundering systems in Bermuda are working.

"We were happy that we were able to place somebody before the courts, and that there was a guilty plea," he said. "We would like to encourage all other institutions, regulated or otherwise, to report any suspicions they have."