Bermuda Housing Corporation fraudster Terrence Smith launched an appeal against his conviction with an allegation that he was a scapegoat for much more powerful figures.

His lawyer, Patrick O'Connor QC, wants access to the much-publicised leaked Police file on the BHC scandal as part of his case that Smith, 47, did not get a fair trial. The former Property Officer was convicted last March of 42 counts of fraud totaling more than $1.2 million of public money, and jailed for eight years.

Urging the importance of Smith's right to a fair trial, Mr. O'Connor told the Court of Appeal yesterday: "The stark fact is that this appellant was the only person even charged, let alone tried and convicted in this whole scandalous affair... it's a widespread perception across this community that Mr. Terrence Smith was the convenient scapegoat for the crimes of others much more powerful than him and on an even wider scale."

He plans to argue, among other points, that a culture of fraud was so widespread at the BHC that witnesses who told Smith's trial they were unaware of anything wrong with cheques they signed off may actually have been turning "a blind eye."

The Smith case centred on him getting carpenter Steven Barbosa to submit inflated bills for BHC work, signing them off, then creaming off the profits for himself. If Mr. O'Connor succeeds in persuading the Court of Appeal that the co-signatories to the cheques may have been aware of the fraud, this would compromise the prosecution's case.

Prosecutor Kulandra Ratneser countered the allegation of widespread fraud. Currently acting for the Crown in the appeal, Mr. Ratneser was the Acting Director of Public Prosecutions who made the decision that Smith was the only person who should face criminal charges after a Police probe into alleged corruption at the BHC concluded.

Mr. Ratneser noted his comments at the time that the probe uncovered evidence of unethical conduct by persons inside and outside the BHC were a matter of public record. However, he also reiterated previous comments that the only evidence of criminality was that against Smith.

Since Smith's conviction there has been widespread publicity relating to the Police dossier on the BHC affair, which was leaked to the media and has featured in high-profile reports.

In a Mid-Ocean News report in June, it was alleged that Premier Ewart Brown, former Premier Jennifer Smith, former Minister Renee Webb, construction boss Zane DeSilva and others were investigated by Police looking into allegations of corruption at the BHC.

The Attorney General, Commissioner of Police and Premier Ewart Brown have since engaged in failed attempts to get the courts to block the media from the publication of further revelations from the dossier. They allege that it has been stolen and utilised by those with a political agenda.

However, Mr. Ratneser said during yesterday's appeal proceedings: "The position is although the media have tried to make it out that there's a lot of fraud that's been done at the BHC, that's not correct."

He said that although an allegation of widespread fraud will form part of Smith's appeal: "There's absolutely no evidence of that. There will be no evidence before Your Lordships. These statements are very, very dangerous."