money, was fined $2,000 on Tuesday in Magistrates' Court.

Henry G. Laing, 45, of Harbour Road, Paget, was found guilty of defrauding the Bermuda Commercial Bank and obtaining money by false pretences.

Laing, the former office manager at The Ram's Head Inn, borrowed $15,000 from the Bermuda Commercial Bank on November 14, 1989 so he could buy a Mitsubishi Lancer.

The loan was secured by a chattel mortgage -- the car itself.

But in July of 1991, Laing sold the car to John White, who was unaware of the outstanding loan.

In delivering her verdict, the Wor. Cheryl-Ann Mapp said Laing used the $12,500 he received from White to "to defray personal expenses''.

The newlywed Laing then left the Island.

Mrs. Mapp said she could not accept Laing's explanation that he was unaware of the ramifications of his agreement with the bank, and that he did not know he could not spend the sale proceeds as he saw fit.

"The banks need to be protected,'' she said. "When they enter into agreements with customers, they need to be assured those conditions will be complied with.

"Otherwise, the whole financial structure of this country will just fall into ruin.'' White was forced to settle up with the bank, she said.

During the trial, Laing gave White a promissory note for $8,500.

Laing has until May 31 to pay his two $1,000 fines, or spend three months in prison.