Capital G Bank has secured a possession order on the Devonshire mansion belonging to convicted fraudster Terrence Smith that could eventually allow it to sell the house, has learned.

Smith borrowed money from the bank to buy the house. The possession order was granted, understands, because he did not comply with the mortgage.

The former Bermuda Housing Corporation Property Officer was found guilty on March 29 of siphoning off more than $1.2 million of taxpayers? money from the organisation?s coffers.

Smith abused his position of responsibility as to authorise fraudulent payments to a carpenter who submitted fictitious bills for his work.

He spent a large proportion of the profits from this enterprise on renovating his home in Tee Street.

Smith?s trial heard that he made false claims to be an architect at the Corporation and also gave inflated salary figures when applying for Capital G loans totalling $840,000 for Tee Street.

In evidence, Capital G mortgage officer Andrea Proctor confirmed that the bank did not verify this information before granting the loans.

Former BHC general manager Ed Cowen spoke in his evidence of how Capital G once called in Smith?s mortgage.

The Crown successfully applied under the Proceeds of Crime Act in 2004 to have Smith?s assets ? including the house ? frozen.

This restraining order prevents the house from being sold at the present time under further applications are made to the Supreme Court.

After the fraud case, Consultant to the Department of Public Prosecutions Kulandra Ratneser said the Police plan to act under the Proceeds of Crime Act to strip Smith of the assets by which he profited from the fraud.

This will include his home, which is believed to be worth in the region of $3 million.

Upon being contacted by last night, Capital G?s lawyer Justin Williams declined to comment.

Smith is currently on remand, waiting to be sentenced. His lawyer, Larry Scott, has indicated that he plans to appeal.