Administrators working on the winding up of Bermuda investment firm Emerald Financial Group Ltd. are "hopeful" that many investors will get their money back, it emerged yesterday.

Bermuda Police arrested a 45-year-old woman last Thursday — reportedly the company's managing director Antoinette Bolden — in connection with the Fraud Unit's ongoing investigation into Emerald.

Winding-up proceedings have since started against four entities owned by the group — Emerald Capital Investment Ltd. (ECI), Directrade Ltd., Emerald Financial Ltd. and Emerald Investment Management Ltd.

Charles Thresh, of KPMG Advisory Ltd., agents for the Official Receiver, said in an e-mail to investors yesterday that the police investigation was focused on ECI.

"It would be inappropriate to comment on the affairs of this company until those enquires are concluded," Mr. Thresh wrote.

"These enquires might also be expanded to cover other Emerald entities not currently under police investigation, although we do not know at this stage."

Mr. Thresh guardedly offered hope to concerned investors in the other segments of Emerald.

"Whilst some progress has been made, our own enquires on behalf of the Official Receiver are at an early stage," he said.

"It would be premature to comment on the security of your investments made through Directrade Ltd, EFL, EIM (or the other Emerald entities over which the Official Receiver has not been appointed), before concluding our enquires.

"We are hopeful that most, if not all, investors dealing with these companies will, after an initial period of disruption, continue to receive the benefits of their investments and, ultimately, receive back their invested monies. However, we can give no assurances yet in this regard."

Emerald's online stock trading facility, which is maintained by US investment bank Pershing LLC "has been disabled at the Official Receiver's request", Mr. Thresh added.

The legal relationship between Pershing, Emerald, Directrade and their customers is still being researched.

"We are hopeful that once this analysis is concluded, the Directrade online facility and associated debit card applications will be reinstated, or re-established through an alternative broker," Mr. Thresh said.

"We will advise of the arrangements to Directrade customers as soon as possible, hopefully early next week."

Progress on this matter was delayed yesterday, because of the July 4 holiday in the US.

Mr. Thresh said he and his team had been working with the BMA, Police and Emerald's employees and service providers to understand the group's financial and operational affairs, since the Official Receiver was appointed last week.

He added that he would send an e-mail update to investors next week.

Concerned Emerald investors should send any queries to emeraldinfo@kpmg.bm.