Terrence St. Patrick Smith yesterday became the first person charged over the Bermuda Housing Corporation (BHC) scandal when he was accused of defrauding the quango of almost $1.4 million.

Smith faced 49 charges of intending to defraud BHC of $1,393,291 when he appeared at Magistrates' Court.

In all the charges, it is alleged he falsely pretended BHC purchase orders were genuine to induce corporation staff to pay cheques to carpenter Steven Barbosa with intent to defraud.

The offences are alleged to have taken place between September 20, 2000, and February 27, 2002.

After Smith's appearance yesterday, Police said said it marked the "concluding stages" of their two-year investigation, but said further charges had not been ruled out.

Former Director of Public Prosecutions Kulandra Ratneser said in May he had recommended one person be charged and was considering charges against a second individual.

Smith, a former BHC property manager who was sacked in 2002, posed for photographs outside the courtroom before his appearance.

Smith, who was represented by Elizabeth Christopher, was released on $10,000 bail with a like surety to re-appear on August 13, when he can elect to have either a long-form or short-form preliminary inquiry.

The matter is indictable, meaning it can only be tried at Supreme Court, so Smith, 44, of Tee Street, Devonshire, was not required to enter a plea.

The case was delayed when papers presented by Crown counsel Cindy Clarke were not fiated - spelling out that the case is indictable - but it resumed shortly afterwards.

Police said yesterday that Smith's court appearance "signals the concluding stages of the Police investigation into the allegations of criminal conduct made in connection with the affairs at the Bermuda Housing Corporation.

"This has been one of the most thorough and labour-intensive investigations ever conducted by the Bermuda Police Service.

"Evidence was collected and examined over a period of two years and the Metropolitan Police Serious Fraud Squad at New Scotland Yard provided periodic advice during the investigative stage.

"The Bermuda Police Service and Department of Public Prosecutions have collaborated closely in the concluding stages in order to establish where there is clear evidence of breaches of the Criminal Code and further charges are not ruled out.

"The Bermuda Police Service and the Department of Public Prosecutions plan on making a more detailed press release on the outcomes of the investigation in approximately four weeks time."

Last year, Mr. Barbosa won a civil case against Smith at Magistrates' Court, when the court ordered the former property manager to pay him $22,500 for work he had carried out on the defendant's house.