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Peniston was director of company that owned casino ship ? claim

Llewellyn Peniston

High-profile lawyer Llewellyn Peniston was once a director of the company that owned alleged casino ship Niobe Corinthian, a Policeman claimed in court yesterday.

Inspector Nicholas Pedro was testifying in the trial of the vessel's Panamanian captain, Fermin Alfonso Reyes, 29, and George Kezas, 71 ? said by the Prosecution to be the ship's managing director.

The pair are accused of illegally importing 100 gaming machines into Bermuda.

The day's proceedings also saw three gaming machines wheeled into Magistrates' Court as part of the Prosecution case, and allegations made by a defence lawyer that Police "tricked" the captain into leaving the ship in order to arrest him.

Inspector Pedro, of the Commercial Crime department, told the court on Monday how 100 gaming machines were removed by the Police from the ship while she was moored at Marginal Wharf, St. David's, on August 11, 2006. She had arrived in Bermuda on July 24. Yesterday, he identified three machines brought into court as having come from the ship, describing them as a one-armed bandit and two poker machines.

On August 13, Kezas' home in Lily Park Lane, St. George's, was raided, and Kezas arrested on suspicion of importation of gaming machines.

Kevin Bean, representing Kezas, asked Inspector Pedro if he had been able to determine who the owner of the vessel was. He replied that Mr. Peniston gave a Police statement saying had he had resigned as a director of the company that owned Niobe Corinthian "six weeks earlier".

Investigations were still active to determine who the directors of the company were, said the Inspector, naming it as Corinthian Ltd., "a joint Bermuda stock company".

He said Corinthian had a local address at Channel House, Longfield Road, St. David's ? "the previously registered address of Peniston and Associates."

Inspector Pedro told the court his investigations determined that Corinthian is owned by Estrellas Management BVI Ltd. ? a company registered in the British Virgin Islands.

Asked if he had been able to determine who the beneficial owner of Estrellas was, Inspector Pedro said: "Investigations are ongoing. We have not received documentary evidence of that yet."

Quizzed about the operational relationship between Corinthian and Estrellas, he said "Corinthian Ltd. was solely responsible for the ship, its movements, activities, and administration."

Mr. Bean put it to him that Corinthian was a charterer of the vessel, not the owner. Inspector Pedro replied that a document filled out when the ship entered Bermuda indicated that Corinthian "exercises management and control over the activities of the ship".

The lawyer also put it to Inspector Pedro that he had not been able to determine if Mr. Kezas was involved in the ownership of either of the two companies.

The officer said this was correct, but that he was widely listed as the managing director of the ship and its manager.

In answer to a number of questions from Elizabeth Christopher, representing Reyes, about the captain's arrest on August 11, Inspector Pedro said Police did not indicate while on board ship that Reyes was going to be arrested. He said Reyes had been cautioned when he got in a Police car.

Ms Christopher said: "I'm going to suggest to you that you deliberately tricked Captain Reyes off the ship."

Inspector Pedro replied: "No. The process of arresting a person is a discretionary one which we delayed until we were off the ship for safety reasons."

After pointing out that Reyes is Panamanian, and Niobe Corinthian registered in Panama, Ms Christopher said: "Are you also aware that you cannot enter on board a ship registered in Panama or any other jurisdiction and arrest people on it?"

Inspector Pedro said he believed Police had the same powers as Customs officers to enter a vessel in Bermuda's territorial waters, and he was in possession of a warrant issued by Magistrate Justin Williams to search the vessel "for gaming machines and other things".

Asked why Reyes had not been interviewed that night, Inspector Pedro said there were problems with the captain's lawyer, Mr. Peniston.

"I had a problem with the lawyer and I advised him that he should consider getting the lawyer of his own choice, not one that was thrust upon him," said Inspector Pedro, saying this happened just prior to Mr. Peniston's arrival at the Police station.

Both Reyes and Kezas deny the charge against them, and the case continues.