The Crown may appeal a judge's decision that search warrants issued to detectives investigating allegations a "sham" trust was used to buy a house for a non-Bermudian were invalid.

Puisne Judge Ian Kawaley ruled this month the warrants given to commercial crime detectives to search the $3 million home of businessman Norberto Herrero, and the offices of law firm Appleby, Spurling and Kempe, and Sterling Management should not stand.

Last night Acting Director of Public Prosecutions Kulandra Ratneser said he was still deciding on whether to appeal the decision.

A court hearing in February heard detectives believe former Mayor of Hamilton William Boyle and others were involved in a conspiracy to use a "sham" trust which allowed Mr. Herrero, a non-Bermudian, to acquire the home in Paget, thus defrauding Government of $660,000 in sales tax.

The court heard Police believe Mr. Herrero, his wife Kathleen Herrero, Mr. Boyle, AS&K lawyer Scott Swainson, and Bruce and Margaret Hern of Sterling Management were involved in the conspiracy to defraud Government.

But lawyers for those named said the trust had been set up legally and there was no proof of dishonesty.

Mr. Justice Kawaley said Police had not produced reasonable grounds for suspecting a conspiracy to defraud had been committed when they secured search warrants from Magistrate Edward King.